CHINA
Upward and Onward
China overtook the United States as the world’s top destination for new foreign direct investment (FDI), highlighting another achievement for the world’s second-largest economy amid the coronavirus pandemic, the BBC reported Monday.
A report by the United Nations Conference on Trade and Development found that direct investment in China rose by four percent last year, while in the US it fell by almost half.
China had $163 billion in inflows in 2020, compared with $134 billion attracted by the US. The new figures contrast with those of 2019, when the US received $251 billion in FDI while China received $140 billion.
The report noted that the US still remains the top destination for foreign businesses looking to expand overseas, but analysts said that investments in the world’s largest economy have been dropping since 2017.
Former President Donald Trump’s administration urged US companies to leave China and re-establish operations in the US. It also warned Chinese firms and investors that they would face new scrutiny, citing national security grounds.
The top-ranking marks another victory for China, which was the only major economy to register growth last year. Earlier this month, China reported that its gross domestic product rose 2.3 percent in 2020.
The British-based Centre for Economics and Business Research predicted that China will emerge as the world’s largest economy in 2028.
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