Chinese outbound direct investment or ODI in the coming decade is forecast to reach $1.5 trillion, up 70 percent from the level during 2007-16, according to a new report by leading British law firm Linklaters.

The report identified key Chinese policies, including Made in China 2025 and the Belt and Road Initiative, as major driving forces for continued growth in Chinese outbound deals, although it warned that Chinese acquirers should approach deals strategically in the face of regulatory tightening overseas.

William Buckley, a partner at Linklaters, said: "Despite increasing regulatory scrutiny of Chinese outbound mergers and acquisitions by foreign governments, and calls for greater reciprocity, there is a definite Chinese desire to pursue the right deals abroad."