China's 2024 overseas newly signed contracts hit record with green projects surging 12.7%

This photo taken on Sept. 26, 2024 shows the Karuma dam at the Karuma Hydropower Station in Kiryandongo, Uganda. Ugandan President Yoweri Museveni has commissioned the Chinese-built 600-megawatt Karuma Hydropower Station and the Karuma Interconnection Project in the midwestern Ugandan district of Kiryandongo. (Photo/Xinhua)

China achieved stable growth in outbound investment in 2024, with a notable increase in international green infrastructure collaboration. Newly signed contracts included eco-protection and clean energy initiatives rose by 12.7 percent last year, according to data released by the Ministry of Commerce (MOFCOM) on Sunday.

China's overseas contracted projects hit a record high in the past year, as newly signed contracts totalled $267.3 billion, marking a 1.1 percent year-on-year growth, MOFCOM data showed.

Green infrastructure cooperation stood out as a key highlight, with new contracts for energy-saving, environmental protection, and clean energy projects rising 12.7 percent to $49.26 billion.

Last year, investment in countries participating in the Belt and Road Initiative (BRI) also recorded stable growth. In 2024, Chinese enterprises channeled $33.69 billion in non-financial direct investment into these countries, reflecting a 5.4 percent year-on-year growth.

"The ongoing deepening of practical collaboration with countries participating in the BRI has played a key role in advancing the high-quality development of the initiative," a MOFCOM official said in a statement issued on the ministry's website.

In recent years, the Chinese government has ramped up efforts to encourage domestic companies to invest in green projects abroad, supporting these initiatives with concrete measures to ensure their success, Bai Ming, a research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Sunday.

"This push has led to a surge in environmentally focused outbound investments, particularly in developing countries," Bai said.

China has collaborated with over 100 countries and regions on green energy projects and launched a number of key projects and some "small yet smart" projects that effectively address the accessibility and affordability of power supply in those areas, and provide them with clean, safe and reliable energy supply solutions, said a white paper issued in August 2024 by China's State Council Information Office, per a Xinhua report.

"This collaboration fosters a win-win situation, addressing the urgent need for green transitions in developing nations. For Chinese firms, it unlocks new opportunities in green technologies, environmental industries, and the digital economy," Bai added, predicting that Chinese foreign investments will increasingly prioritize high-tech resources and green industries, especially in Belt and Road partner countries in the future.

Overall, China's non-financial outbound direct investment rose by 10.5 percent year-on-year to $143.85 billion in the past year, according to the MOFCOM.

Investment in ASEAN countries grew particularly fast, increasing by 12.6 percent compared to 2023, with significant inflows into Singapore, Indonesia, and Thailand and other regional economies.

By sector, the majority of investments flowed into leasing and business services, manufacturing, and wholesale and retail trade, official data revealed.

China's overseas labor services experienced a strong recovery last year, with 409,000 workers dispatched abroad, representing a 17.9 percent increase from the previous year. Most of these workers were employed across construction, transportation, warehousing, and postal services, playing a crucial role in securing employment and promoting all-around rural revitalization.