Chinese companies made overseas direct investments valued at US$2.85 billion last year, an increase of 5.5 per cent compared to 2002, the Ministry of Commerce said.

By the end of last year, the total amount of overseas direct investment by these companies reached US$33.2 billion, the ministry said in the Statistical Communiqu¨¦ of China on Overseas Direct Investment, jointly issued with the National Bureau of Statistics. This was the first time for the country to issue such a communiqu¨¦, suggesting the government wants to beef up supervision on overseas investment, said a senior Chinese Academy of International Trade and International Co-operation researcher.

China's overseas direct investment activity lagged far behind developed countries, however, he said. Figures from the communiqu¨¦ indicate that direct investment of Chinese companies accounted for only 0.48 per cent of the world's total. According to the communiqu¨¦, State-owned firms took a lead in making overseas investment, accounting for 43 per cent of the firm totals. Nearly half of investment by Chinese companies was placed in Asia.