A bank clerk uses a machine to count yuan banknotes in a bank in Hefei in central China's Anhui province. [Photo: china.org.cn]

New stats show that the United States has become the third largest destination of Chinese investment.

The number is in a report examining China's outbound direct investment in 2014.

According to the report, China's foreign direct investment reached 123 billion U.S. dollars in 2014, a 14 percent annual increase.

Zhang Xiangchen, the International Trade Deputy Representative from the Ministry of Commerce, says the numbers also indicate a continuous increase of Chinese investment into the United States.

"As of the end of 2014, China has set up three thousand enterprises in the United States, with investment of $65 billion US dollars. The outbound direct investment stock was 38 billion, accounting for 58% of the total investment stock. The United States has become China's third-largest destination for foreign investment, after Hong Kong and Australia."

The official notes that as the two countries are currently negotiating on the Bilateral Investment Treaty, the number is expected to further grow.

"During the new round of negotiations, representatives from both China and the United States have exchanged and evaluated the updated negative list. From our perspective, though the negotiation is still in process, both sides have already made substantive improvements. The US Security Review has been concerned over the Chinese government and enterprises. We will urge the US to simplify procedures, add more transparency in the process, and reduce unnecessary troubles and barriers for Chinese companies to invest in the US."

According to the Zhang, the BIT marks an important step in opening China's economy to U.S. investment by eliminating market barriers, and leveling the playing field for American workers and businesses.

And on the other hand, Zhang Xiangchen says it could be a boost for Chinese investors wanting to explore the U.S. markets.

"When it comes to whether to invest in the US, Chinese enterprises think more about the long-term development of the company itself. It is a strategic decision concerning many factors. The host country's macroeconomic policies, including interest rate policies are certainly under their consideration. However, what company's eventually do is to think from the perspective of the global industrial layout, consider what their business needs, and then find their own appropriate development opportunities."

Statistics showed in the first 8 month of the year that China's investment in the U.S. totaled more than 4.4 billion U.S. dollars, up nearly 36 percent from the same period last year.