China’s Growing Global Connections
As the China12 internationalise, three topics dominate the narrative around China’s growing global influence: The Belt and Road Initiative; capital outflows and the growing overseas presence of Chinese corporates. Explore China’s Global investment, leasing and corporate activity with our interactive map below.
Direct Commercial Real Estate Investment by Mainland Chinese sources
Mainland Chinese Corporate Footprint
Based on a basket of 81 corporates
Leasing Activity by Chinese Corporates, 2015-2017
Land Purchases by Chinese Buyers, 2013-2017
JLL's China Outbound Cities Connectivity Index
Based on Mainland Chinese outflows into world cities across five themes: capital, corporates, infrastructure, flows of people and trade
The Belt and Road Initiative (BRI)
The BRI represents an ambitious global infrastructure financing and construction programme, which at its most common definition spans 65 countries across the globe. More broadly, the BRI is an umbrella term for China’s overseas infrastructure projects. State-owned enterprises, alongside new and existing financing institutions, are the key drivers of the project. South, Southeast and Central Asian markets, as well as countries in Eastern Europe and East Africa, are set to be key beneficiaries. Many of these markets face challenges around risk and market transparency, meaning that they are likely to remain off the radar of many real estate actors.
Capital outflows reached US$158 billion in 2017, with real estate accounting for around US$32 billion of this. Investments have targeted a range of sectors, from consumer goods to cutting-edge technologies, with Chinese firms taking charge of well-known global brands. A number of high-profile acquisitions in 2016 led to the strengthening of capital controls, but there nonetheless remains room for growth. Investment is likely to become more targeted and more aligned with national priorities.
The Next Wave of Chinese Corporates
China’s dynamic innovative firms are becoming increasingly internationally-recognised. Through natural expansion, acquisitions and venture capital investments, a new breed of Chinese firms are entering markets across the globe. Technology firms Huawei, ZTE, Alibaba and Tencent are at the forefront of this move.
World Cities Forming Distinct Connections with Mainland China
Source: JLL, 2018