1. China’s worldwide reach: Outward Investment (Heritage )

2. Investment Flows - total $2861 Million- in 2003 In USD million

3. Investment Flows - total $56,529 Million- in 2009 In USD million

4. Investment Flows – not including HK Macau and Taiwan 2003 In USD million

5. Investment Flows – not including HK Macau and Taiwan 2009 In USD million

6. Outward Direct Investment: Flows 2003- 2009 2003 2004 2005 2006 2007 2008 2009 ASEAN 125.7 195.6 157.7 335.8 1033.7 2484.4 2698.1 Central Asia 6.5 18.8 109.5 95.5 384.3 665.5 354.5 Northeast Asia 166.8 109.8 664.8 160.3 310.4 435.4 631.6 South Asia 11.7 4.5 17.1 (50.3) 935.9 494.7 78.8 MEAF 26.9 201.2 297.8 405.9 498.6 203.8 965.6 HK Macau Taiwan 1180.7 2655.0 3428.0 6888.4 13779.6 39283.6 36057.0 Africa 68.3 151.6 200.9 361.5 1297.4 5480.1 1070.5 EU 112.5 73.1 189.5 128.7 1044.1 466.6 2966.4 Russia & Rest of Europe 32.1 79.1 206.0 455.1 489.6 399.8 376.8 Central America & Caribbean 1022.5 1745.2 6484.7 8429.9 4448.1 3497.1 6998.3 South America 15.7 18.9 38.1 63.8 351.7 75.4 329.6 Australia & Oceania 33.9 120.2 202.8 126.4 770.1 1951.9 2480.0 US 65.1 119.9 231.8 198.3 195.7 462.0 908.7 Canada (7.3) 5.1 32.4 34.8 1032.6 7.0 613.1 Total 2861.1 5497.9 12261.2 17634.0 26571.7 55907.2 56529.0

7. ODI STOCK

8. Stock inflow 2003-2009 Top Countries

9. Outward Direct Investment: Stocks in 2003 total 33,222 million USD USD Million

10. Outward Direct Investment: Stocks in 2009 total 245,755 million USD USD Million

11. Outward Direct Investment: Stocks 2003- 2009 2003 2004 2005 2006 2007 2008 2009 ASEAN 587.0 955.8 1,256.3 1,763.8 3,953.6 6,487.4 9,578.9 Central Asia 44.4 78.6 350.1 489.4 934.0 2,017.4 2,343.2 Northeast Asia 339.3 799.1 1,194.6 1,533.4 2,431.7 2,374.2 3,413.8 South Asia 45.7 60.2 255.3 226.5 1,248.8 1,738.3 1,950.9 MEAF 537.4 810.8 1,438.5 2,050.7 2,231.8 2,676.7 3,743.6 HK Macau Taiwan 25,079.1 31,017.7 37,105.8 42,882.6 69,692.1 117,406.2 166,336.3 Africa 462.1 665.4 974.1 1,631.7 3,240.7 6,495.9 7,600.0 EU 421.7 537.4 767.9 1,273.3 2,940.9 3,172.7 6,229.1 Russia & Rest of Europe 65.4 130.7 478.8 952.1 1,463.4 1,884.8 2,360.4 Central America & Caribbean 4,393.8 8,168.4 11,500.9 19,440.0 23,907.3 31,167.8 29,199.4 South America 225.5 285.1 305.9 462.8 899.5 1,073.8 1,572.0 Australia & Oceania 472.3 544.0 650.3 939.5 1,830.4 3,816.0 6,419.0 US 502.3 665.2 822.7 1,237.9 1,880.5 2,389.9 3,338.4 Canada 46.2 58.8 103.3 140.7 1,254.5 1,268.4 1,670.3 Total 33,222.2 44,777.3 57,204.4 75,024.4 117,909.3 183,969.5 245,755.4

12. Stock of outward foreign direct investment

13. Global Outward FDI (2000-2009) total 11.6 trillion USD $174.7 Billion USD Source: UNCTADstat

15. CHINESE OVERSEAS LOANS AND ASSISTANCE

16. PRC Aid by Year and Region, 2003-2007 US$ 25,098 million

17. Global Net ODA in 2010 http://webnet.oecd.org/oda2010/

18. Geographical Distribution of China’s Foreign Aid Funds in 2009 By the end of 2009, China provided a total of US $39.47 billion in aid to foreign countries. Source: White Paper on China's foreign aid issued by China's Information Office of the State Council on April 21, 2011

19. CDB’s Energy- Backed Loans, 2005-2010

20. Estimated Oil Deliveries From CDB’s EBLs, 2010-2014

21. CHINA –U.S. ECONOMIC RELATIONS U.S.-CHINA

22. Symbiotic Relationship Between U.S. and China China is the largest foreign holder of US treasury securities, with a $1.2-trillion portfolio. China also has $3 trillion in currency reserves.

23. Trade

24. China’s trade with U.S. 283.679 101.959 2001 China joins the WTO Total trade in 2010: $385.6 billion Exports Imports

25. China’s share of trade in U.S. 2000 vs. 2010 17% 14% 2000 2010 $ 2,723.5 bn $438.3 bn China's surplus $29.8 bn China's surplus $181.7 bn

26. U.S. apparel prices goes where when import prices have risen lately?

27. Chinese Portfolio and Direct Investment in the US, 2009* USD bn, direct holdings only Source: US Treasury, BEA, RHG, *portfolio investment data from mid-year 2009 and FDI data from end-year 2009

28. Value of U.S. imports of wooden bedroom furniture, by import country "To avoid a 2005 U.S. tariff on Chinese-made wooden bedroom furniture, Chinese furniture companies moved operations to other Asian countries, thwarting U.S. efforts to curb “dumping,” the export of goods at unfairly low prices

29. Investment- FDI

30. US Investment Income Payments to China, 1999-2009 USD bn, US BOP flow data Source BEA, RHG

31. US Inward FDI Stock by Region of Origin, 2009 % share of total stock in 2009 ($2.3 trillion), historical cost basis, UBO Source: BEA, RHG

32. The U.S. trade relationship with China Total trade: $365 billion

34. China’s Direct investments in the U.S.

43. Impacts?

47. IV. Doormen: Policy and Politics

50. Some estimate an increasing stronger economy will enable china to surpass the US in R&D

51. Policy, Politics and Conclusions

53. V. Conclusions and Recommendations

54. Conclusions 1. US booming for Chinese investors: but that’s not the story people hear 2. The driver is profit, the barrier is business acumen, but the scapegoat is CFIUS 3. US policy is functions well, the politics are frequently rash and capricious. With Chinese FDI booming and US politics neurotic, severe tensions are certain – unless misgivings can be resolved 4. More than $1 trillion Chinese OFDI by 2020: the local and macro stakes are serious

55. Recommendations 1. Send a clear and bipartisan message that Chinese investment is welcome 2. Systematize the promotion of FDI from China and elsewhere 3. Protect the investment review process from interference 4. Work to better understand Chinese motives 5. Communicate to China its share of the burden 6. Remain open to “what if” scenarios 7. Do not play the reciprocity game 8. Get our own house in order

56. Investment- Portfolio

57. Investment- Bonds

58. Aids & Loans

59. CHINA –CANADA ECONOMIC RELATIONS CANADA-CHINA

60. Trade

61. Trade: Canada 1% 2% 2000 2010 $ 2,723.5 bn $438.3 bn China's deficit $0.6 bn China's surplus $7.4 bn

62. Investment- FDI

63. Investment- Portfolio

64. Investment- Bonds

65. Aids & Loans

66. CHINA - LATIN AMERICA ECONOMIC RELATIONS Latin America-CHINA

67. Trade

68. China’s Trade with LA 91.5699 89.696 2001 China joins the WTO Total trade in 2010 : $181.2 bn Exports Imports

69. China’s share of trade in Central America/Caribbean 2000 vs. 2010 2000 2010 $ 2,723.5 bn $438.3 bn China's deficit $0.3 bn China's surplus $4.0 bn

70. China’s share of trade in South America 2000 vs. 2010 2% 2000 2010 $ 2,723.5 bn $438.3 bn China's deficit $1.2 bn China's deficit $25.3 bn

71. Investment- FDI

72. China: FDI in selected Latin American and Caribbean economies

73. Investment- Portfolio

74. Investment- Bonds

75. Aids & Loans

78. CHINA – EU ECONOMIC RELATIONS

79. TRADE

80. China’s Trade with EU 311.478 168.445 2001 China joins the WTO Total trade in 2010: 479.89 bn Exports Imports

81. China’s share of EU trade 2000 vs 2010 16% 18% 2000 2010 $ 2,723.5 bn $438.3 bn China's surplus $10.2 bn China's deficit $143.0 bn

82. Top countries for German Exports in 2010

83. Investment- FDI

84. Chinese acquisitions of European targets

85. Top Chinese investment in European targets on record per sector1

86. Top Chinese investment in European targets on record per sector2

88. Investment- Portfolio

89. Investment- Bonds

92. Aid & Loans

93. CHINA – RUSSIA AND REST OF EUROPE ECONOMIC RELATIONS Russia and Rest of Europe -CHINA

94. Trade

95. China’s share of trade in Russia and rest of Europe 2000 vs 2010 2000 2010 $ 2,723.5 bn $438.3 bn China's deficit $4.6 bn China's surplus $4.2 bn

96. Investment- FDI

97. Investment- Portfolio

98. Investment- Bonds

99. Aids & Loans

100. CHINA - MIDDLE EAST ECONOMIC RELATIONS

101. Trade

102. China’s share of trade in Middle East 2000 vs. 2010 4% 6% 2000 2010 $ 2,723.5 bn $438.3 bn China's deficit $3.5 bn China's deficit $22.7 bn

103. Investment- FDI

104. Investment- Portfolio

105. Investment- Bonds

106. Aids & Loans

107. CHINA - AFRICA ECONOMIC RELATIONS Africa-CHINA

108. Trade

109. China’s Trade with Africa 51.732 58.072 2001 China joins the WTO Total trade in 2010 : $109.8 bn Exports Imports

110. China’s share of trade in Africa 2000 vs. 2010 2% 2000 2010 $ 2,723.5 bn $438.3 bn China's deficit $11.5 bn China's deficit $125.2 bn

111. Sudan’s Oil Supply

112. Investment- FDI

113. Investment- Portfolio

114. Investment- Bonds

115. Aids & Loans

116. CHINA – ASIA ECONOMIC RELATIONS

117. Trade

118. China’s share of trade in Northeast Asia 2000 vs. 2010 19% 27% 2000 2010 $ 2,723.5 bn $438.3 bn China's deficit $11.5 bn China's deficit $125.2 bn

119. China’s share of trade in Hong Kong, Macau 2000 vs. 2010 2000 2010 Macau US$230.0 bn $438.3 bn $ 2,723.5 bn China’s surplus $35.7 bn China’s surplus $210.7 bn

120. China’s share of trade in ASEAN 2000 vs. 2010 11% 2000 2010 $ 2,723.5 bn $438.3 bn China's deficit $4.8 bn China's deficit $16.1 bn

121. China’s share of trade in South Asia 2000 vs. 2010 1% 3% 2000 2010 $ 2,723.5 bn $438.3 bn China's surplus $1.9 bn China's surplus $34.6 bn

122. China’s share of trade in Australia and Oceania 2000 vs. 2010 4% 2000 2010 $ 2,723.5 bn $438.3 bn China's surplus $0.7 bn China's deficit $ 25.3 bn

123. Investment- FDI

124. Investment- Portfolio

125. Investment- Bonds

126. Aids & Loans