EY releases the Overview of China outbound investment of 2025

• China’s outward direct investment (ODI)¹: In 2025, China’s overall ODI reached US$174.4 billion, up 7.1% year-on-year (YoY). Non-financial ODI amounted to US$145.7 billion, up 1.3% YoY. Non-financial ODI in Belt and Road (B&R) partner countries grew by 17.6% YoY, significantly outpacing the overall growth rate.
• China overseas mergers and acquisitions (M&As)²: In 2025, Chinese enterprises announced a total of US$43.6 billion in overseas M&A, up nearly 40% YoY, of which large deals valued over US$1 billion increased from seven to 13 compared with the same period last year. The number of deals stood at 429, down 1% YoY.
  • In terms of sector, accelerated brand acquisition and channel integration propelled the consumer sector to surpass TMT* (technology, media and telecommunications sectors) as the hottest industry.
  • In terms of region, Asia and Europe were relatively hot M&A destinations, each accounting for about 30% of the total. North America and Latin America also recorded significant growth in deal value.
• China overseas engineering, procurement and construction (EPC)³: In 2025, both the value of newly signed contracts and the completed turnover for Chinese overseas EPC projects grew steadily, reaching new highs. The value of newly signed contracts reached US$289.2 billion, up 8.2% YoY.

Today, EY Greater China (hereinafter referred to as EY) released the Overview of China outbound investment of 2025. According to the report, China’s outbound investment demonstrated strong resilience within a global environment of profound geopolitical and economic shifts. In 2025, China’s overall ODI reached US$174.4 billion, up 7.1% YoY, non-financial ODI amounted to US$145.7 billion, up 1.3% YoY, of which non-financial ODI in B&R partner countries grew by 17.6% YoY, significantly outpacing the overall growth rate. Chinese enterprises announced a total of US$43.6 billion in overseas M&As, an increase of nearly 40% YoY. The number of large deals valued over US$1 billion rose from seven to 13 compared with the same period last year, while the total number of deals was 429, down 1% YoY.

Loletta Chow, Global Leader of EY China Overseas Investment Network (COIN) and EY Greater China Belt & Road Task Force Leader, stated that in 2025, China’s economy advanced under pressure, demonstrating notable resilience and successfully concluding the 14th Five-Year Plan⁴ period. It has achieved steady growth with GDP up by 5% YoY, despite facing structural challenges such as declining population, weak consumption, and deflationary pressures and the economic scale exceeding RMB140 trillion for the first time⁵. The world experienced profound turbulence and transformation in 2025. Geopolitical conflicts persisted, unilateral tariff measures shook the global trade order, artificial intelligence (AI) technology accelerated iteration and began reshaping the global industrial landscape, while technological competition and strategic resource rivalry between regions intensified. Nevertheless, Chinese enterprises performed impressively in going global: Overall ODI increased 7.1% YoY⁸, while overseas M&A achieved notable growth, up nearly 40% YoY, with increase in large transactions. Export value grew by 6.1% YoY, hitting a new historical high. Exports of high-tech products, electric vehicles and lithium batteries maintained a rapid growth⁷.

2026 marks the beginning of China’s 15th Five-Year Plan⁸ period. China’s economy will adhere to expanding domestic demand as the strategic priority, with efforts focused on boosting consumption, promoting reasonable growth in investment while continuously optimizing its structure. China will advance high-level self-reliance and strength in science and technology, and build a modern industrial system with advanced manufacturing as the backbone and continue to expand opening-up. This includes fostering innovative trade development, and expanding two-way investment cooperation, and advancing high-quality B&R cooperation.

Looking ahead to 2026, Chinese enterprises are expected to further pursue high-quality outbound development. As a global anchor of certainty, China will open up a new chapter of diversified strategic cooperation, injecting confidence and momentum into the global economy.

ODI maintained growth in 2025, with B&R partner countries witnessing a robust growth

In 2025, China overall ODI reached US$174.4 billion, up 7.1% YoY. Non-financial ODI amounted to US$145.7 billion, up 1.3% YoY. Non-financial ODI in B&R partner countries reached US$39.7 billion, up 17.6% YoY, accounting for 27% of the total, up four percentage points YoY.

Overseas M&As saw a significant rebound, with a notable increase in large-scale deals

In 2025, China overseas M&A transactions rebounded notably. Chinese enterprises announced a total overseas M&A value of US$43.6 billion, up nearly 40% YoY. The number of deals reached 429, down 1% YoY. Large-scale deals valued over US$1 billion continued to be a growth highlight, increasing from seven to 13 compared with the same period last year. Chinese enterprises placed greater emphasis on core assets and strategic value in overseas M&A, with investment decisions becoming more prudent and mature.

It is worth noting that the recovery in China overseas M&As in 2025 moved in tandem with the overall upward trend in global cross-border transactions – global cross‑border M&A activity experienced the strongest performance in four years in 2025. M&A value increased by 40% YoY to US$1.4 trillion, with TMT, financial services and energy & power emerging as the most active sectors of transaction activity⁹.

Sector analysis

Accelerated brand acquisitions and channel consolidation propelled the consumer sector to overtake TMT as the most active sector

By M&A value, the Consumer (CP), TMT and Mining & Metals (M&M) emerged as the most active sectors. The two largest deals of the year both came from the CP sector, with a combined value of US$6.7 billion, driving the sector’s deal value to increase over threefold; transactions focused on brand acquisition and channel integration. TMT grew 58% YoY, covering sub-sectors such as software, hardware and artificial intelligence (AI). M&M grew 63% YoY; with gold prices rising significantly in recent years, the attractiveness of overseas gold-mining assets to Chinese enterprises continued to increase.

Regional analysis

Asia and Europe remain relatively hot M&A destinations, each accounting for about 30% of the total; North America and Latin America also record significant growth in deal value

In 2025, Asia was the most popular M&A destination for Chinese enterprises, with deal value of US$15.7 billion, up 15% YoY. Deal value in Europe reached US$13.8 billion, with momentum particularly increasing in the second half of the year, making it the hottest destination in the third and fourth quarters, surpassing Asia. North America saw transaction value reach US$6.4 billion, a significant 291% increase YoY, with its share rising from 5% in 2024 to 15% in 2025. Latin America’s transaction value reached US$5.1 billion, with its share rising to 12%, a five-year high, as both value and volume achieved triple-digit YoY growth.

From a country perspective, Chinese enterprises continued to deepen their presence in mature markets while seeking incremental opportunities in some emerging markets. By deal value, Chinese enterprises’ top 10 destinations accounted for 78% of total deal value; among them, France, the United States, Germany, Brazil and Italy all recorded substantial growth.

Value of newly signed contracts and completed turnover of EPC projects remained a steady growth, hitting the new highs

In 2025, the value of newly signed overseas EPC contracts by Chinese enterprises reached US$289.2 billion, up 8.2% YoY. The B&R newly signed contract value was US$258 billion, up 10.8% YoY, comprising 89% of the total, up two percentage points YoY. The completed turnover of overseas EPC projects reached US$178.8 billion, up 7.7% YoY. The B&R completed turnover reached US$152.6 billion, up 9.3% YoY, accounting for 85% of the total, up one percentage point YoY¹⁰.

2026 outlook: challenges and opportunities in global resilient growth

EY-Parthenon forecasts global economic growth of 3.1%¹¹ in 2026. Developed economies face a convergence of structural and cyclical headwinds, such as aging populations, chronic underinvestment and rising protectionism, and are expected to sustain low single-digit growth over the next two years. Emerging markets display uneven but generally firmer momentum, supported by resilient domestic demand in India and targeted policy support in parts of Asia. Governments worldwide are expected to exert greater influence over economic activity, with the AI value chain and key scarce resources becoming focuses of global strategic competition.

In terms of hot regions for Chinese enterprises going global, amid improving geopolitical relations, Europe remains an important destination for Chinese overseas investment, though a prudent approach is still warranted. Latin America continues to attract investment due to its abundant resources and demand release, but geopolitical risks require careful navigation. ASEAN becomes a growth market leveraging demographic and regional integration advantages. The Middle East and North Africa show investment potential driven by ample capital and economic policies. From sectors perspective, new energy equipment, automotive supply chains, critical minerals, AI applications, cloud infrastructure and robotics are likely to become investment hotspots. The consumer and health industries are diversifying their forms of overseas expansion. The financial services sector continues to provide customized and integrated financial solutions to support enterprises’ globalization.

Recommendations for Chinese enterprises doing outbound investment:

• Stratify the markets by accelerating localization and brand development. Enhance added value products in developed markets while expanding into emerging markets to actively capture the opportunities arising from resilient growth and demographic dividend.
• Address the restructuring of global supply chains by deploying regionalized production footprints to mitigate trade barriers and geopolitical risks.
• Align with the AI-driven capital cycle, leveraging AI and automation to upgrade industrial chains, mitigate labor shortages risks and build competitive barriers.
• Prioritize the assessment of local resource security capabilities in site selection to strengthen the safeguards of resource security and compliance.

*Note: TMT refers to technology, media and telecommunications sectors

1. Source: China Ministry of Commerce, EY Analysis
2. Source: London Stock Exchange Group (LSEG), Mergermarket, data including announced but not yet completed transactions, downloaded on 5 January 2026; EY Analysis
3. Source: China Ministry of Commerce, EY Analysis
4. Note: The full name is the Recommendations of the Central Committee of the Communist Party of China for Formulating the 14th Five-Year Plan for National Economic and Social Development
5. Source: National Bureau of Statistics of China
6. Source: China Ministry of Commerce 
7. Source: General Administration of Customs of China, in RMB terms
8. Note: The full name is the Recommendations of the Central Committee of the Communist Party of China for Formulating the 15th Five-Year Plan for National Economic and Social Development
9. Source: LSEG
10. Source: Monthly Statistics in Brief, China MOFCOM; EY analysis
11. Source: 2026 Geostrategic Outlook, EY Parthenon, December 2025; EY analysis

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