Budding Economies Will Be Best Investments for China, State Think Tank Says
Wang Lin
/SOURCE : Yicai
Budding Economies Will Be Best Investments for China, State Think Tank Says

(Yicai Global) Jan. 16 -- their huge market potential and demand for infrastructure construction make emerging economies the most promising future destinations for China's overseas investment, shows a report on country risk ratings the Chinese Academy of Social Sciences recently issued.

Developed countries' ratings are generally higher than those of emerging economies. Among the top 15 countries for low investment risk, all are developed economies, except for the United Arab Emirates, which ranked 13th, shows the report by the Institute of World Economics and Politics of the Chinese Academy of Social Sciences which published it yesterday.

The ratings encompass 57 countries, including 16 developed economies such as Germany and the US, and 41 emerging economies such as the UAE and Russia. Developed economies have good economic fundamentals, low political risks, high social resilience and strong solvency. Their overall investment risk is significantly lower than that of emerging economies, the report concluded.

The scores for relations between developed economies and China have waned recently, the report noted. Partly because of the declining dependence on bilateral trade and investment between China and developed economies, but also since developed economies are still shy of investments by Chinese enterprises, especially state-owned ones, and concerned China's foreign direct investment threatens their national security.

The rating rankings of Thailand, Tajikistan and Uzbekistan increased significantly from the previous year's report, with a lower risk and a better investment environment. Investment hazards in Cambodia, Mongolia, Iran and South Africa have risen rapidly and call for vigilance, the report also advised.

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Keywords: CASS