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China Tops In Foreign Investment
The United States has been overtaken by China as the World’s leading destination for the latest foreign direct investment. This figure was released by the United Nations on Sunday.
The United States’ new investment record was had a fair hit and fell by half in 2020 and this affected the country’s position on the chart.
While this was ongoing, direct investment in China increased by 4% and this gave her the lead position.
In 2020, China had an inflow of $163 billion as compared to the US $134 billion as recorded by the United Nations Conference on Trade and Development (UNCTAD).
This is a huge contrast to 2019 in which China received a relatively low foreign direct investment of $140 billion compared to the US $251 billion.
The US market still ranks highest in total foreign investments and this is a reflection of many years of being the most appealing destination for foreign businesses searching for global recognition.
Experts opine that the new record is a reflection of the Chinese market’s bid to become the most attractive location for foreign investment, a position which has long been occupied by the United States.
According to the UK-based Centre for Economics and Business Research (CEBR), the trade war between the United States and China is predicted to put China at the top position by 2028.
In 2016, the US foreign investment spiked up to $472 billion and as of then, China was at $143 billion.
The Trump administration however suggested the relocation of American companies from China and since then, the Chinese market has been on the rise.
In addition to that, the administration notified Chinese investors and companies of cumbersome surveillance that they would face in the US.
The outbreak of the coronavirus crippled the economy of the US while that of China boomed and this set the Chinese Gross Domestic Product (GDP) at a 2.3% increase last year.
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