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.

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

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

The Most Connected Cities with China

Source: JLL, 2018