China Outbound: To infinity and beyond – Offshore

Rise of the dragon

The world economy has been recovering from the global economic crisis and much of this recovery has been spearheaded by Asia. China, in particular, has shown impressive progress with a growth rate of 9.1% in its gross domestic product in 2009. With an economy valued at US$1.33 trillion, China has surpassed Japan to become the second largest economy in the world behind the US. China has long been attractive in drawing in inward investments but has been extremely active itself over the past few years in making investments beyond its borders.

Merger and acquisition activity in China has traditionally been strong, with an increase in deal volume of 26% in the first half of 2010 compared with the first half of 2009. This volume comprised a total of 1,884 announced deals out of which 22 deals each exceeded US$500 million.