CKGSB website

CKGSB Knowledge

Chinese Outbound Investment in Energy: Powering China

by Li Hui

October 30, 2014

In the last two weeks, we took a close look at Chinese outbound investment in real estate and automobiles. This week, we turn the spotlight on the energy sector.

Energy is undoubtedly a make or break factor in economic development. China is not a resource-deprived country, but as one of the fastest-growing economies in the world, it needs to actively scout for and stock up resources. As per the Chinese Ministry of Commerce’s 2012 Statistical Bulletin of China’s Outward Foreign Direct Investment, Chinese outbound investment in power and mining combined reached $15.4 billion in 2012, nearly eight times of in the 2004 figures.

In 2013, state-owned China National Offshore Oil Corporation (CNOOC), one of the Big Three Chinese oil companies, hit the headlines with its $15.1 billion purchase of the Canadian oil and gas company Nexen, making it the biggest overseas acquisition of a Chinese company in history. Prior to this, CNOOC had bought Opti Canada, a Canadian oil sands developer, for $2.1 billion in 2011.

However, the worsening pollution issue and environmental concerns have put tremendous pressure on China’s fossil fuel usage. As a result, investing in renewables has become a new trend. In 2009, China Solar Power acquired a US solar start-up named Thin Silicon. In 2012, Chinese Titan Wind Energy closed a wind tower factory deal with Danish wind turbine maker Vesta for an unknown amount.

Interested in Chinese outbound investment in energy? Take a look at the infographic below.


You may also like

Ebb And Flow

International investors in China’s private equity are finding it increasingly difficult to get their money out.

by Sherry Fei Ju | Nov. 9 2022

Tourism Turnaround

Tourism both in China and internationally has struggled due to the pandemic, but strong demand for travel remains.

by James Liang | Nov. 9 2022

No Cash in Hand

Testing of China’s new digital RMB is well underway, but it may have difficulty beating out the competition.

by Ouyang Hui and Weili Wu | Nov. 9 2022

Diamonds are Forever

Shifting demographics within China’s luxury market offer new opportunities for local and international brands.

by Patrick Body | Nov. 8 2022