Chinese enterprises’ cross-border investments are more rational, because the industrial structure of outward investment has been optimized, said an expert, China News reported on Aug. 10.

The remarks were made after China’s Ministry of Commerce released data that shows non-financial outbound direct investment (ODI) flows dropped 46 percent to $48.2 billion on a year-on-year basis in the first half of 2017.

Zhou Zhaomei from the multinational professional services firm EY noted that although China’s ODI did not sustain 2016 growth rates, the increase of outbound investment in new-emerging industries signifies that overall structure of China’s strategy was optimized in the first half of 2017.

Mergermarket data also shows that China’s total value of mergers and acquisitions decreased to $65.7 billion, down 51 percent year-on-year.

A survey jointly conducted by EY and China Mergers and Acquisitions Association (CMAA) found that the decrease can be attributed to guidelines for national regulatory authorities for the enterprises, the base effect, and political and economic uncertainties, all of which are obstacles for Chinese enterprises’ overseas investment.

Chen Shuang, rotating chairperson of CMAA, has long stressed that the positive trend of China’s outbound investment should not be ignored, despite short-term volatility. And recent data reflects the steady growth of China’s outbound investment.

In addition, MOFCOM data reveals that China’s non-financial ODI in 47 Belt and Road countries totaled $6.6 billion in the first half of the year, accounting for 13.7 percent of the whole during the period and up 6 percent from the corresponding period of last year.

EY expects China to gradually increase investment in countries and regions along the Belt and Road route as the country still has considerable capital strength.