China Overtakes U.S. as World’s Leading Destination for Foreign Direct Investment | The Vaultz News
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Saturday, April 17, 2021
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • Sports
  • Arts & Lifestyle
    • Lifestyle
    • Fashion
  • 20MOBPL2DNew
No Result
View All Result
The Vaultz News

China Overtakes U.S. as World’s Leading Destination for Foreign Direct Investment

  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • Sports
  • Arts & Lifestyle
    • Lifestyle
    • Fashion
  • 20MOBPL2DNew
No Result
View All Result
The Vaultz News
No Result
View All Result

China Overtakes U.S. as World’s Leading Destination for Foreign Direct Investment

January 25, 2021
DerrickbyDerrick
in Asia
0
China Overtakes U.S. as World’s Leading Destination for Foreign Direct Investment

Image: Getty Images

A new report by the United Nations Conference on Trade and Development (UNCTAD) has revealed that the People’s Republic of China has overtaken the United States as the world’s top destination for new foreign direct investment.

The report shows that new investments into America from overseas companies fell by almost half last year, leading to the loss of its number one status.

In contrast, UN figures show direct investment into Chinese firms climbed 4%, putting it number one globally.

The top ranking shows China’s growing influence on the world economic stage.

China had $163bn (£119bn) in inflows last year, compared to $134bn attracted by the US, the UNCTAD said in its report.

In 2019, the US received $251bn in new foreign direct investment while China received $140bn.

While China may be number one for new foreign investment, the US still dominates when it comes to total foreign investments.

This reflects the decades it has spent as the most attractive location for foreign businesses looking to expand overseas.

But experts say the figures underline China’s move toward the centre of the global economy which has long been dominated by the US, the world’s biggest economy.

China, currently involved in a trade war with the US, has been predicted to leapfrog it to the number one position by 2028, according to the UK-based Centre for Economics and Business Research (CEBR).

“For some time, an overarching theme of global economics has been the economic and soft power struggle between the United States and China,” says the CEBR report. “The Covid-19 pandemic and corresponding economic fallout have certainly tipped this rivalry in China’s favour.”

China was the only major economy in the world to avoid a GDP contraction last year

Foreign investment in the US peaked in 2016 at $472bn, when foreign investment in China was $134 billion.

Since then, investment in China has continued to rise, while in the US it has fallen each year since 2017.

The Trump administration encouraged American companies to leave China and re-establish operations in the US.

It also warned Chinese companies and investors that they would face new scrutiny when investing in America, based on national security grounds.

While the US economy has been struggling since the Covid-19 outbreak last year, China’s economy has picked up speed.

Last week, China’s National Bureau of Statistics announced the country’s economy measured in gross domestic product (GDP), grew 2.3% in 2020.

This makes China the only major economy in the world to avoid a contraction last year. Many economists have been surprised with the speed of its recovery, especially as it navigated tense relations with the US.

Overall, global foreign direct investment (FDI) dropped dramatically in 2020, falling by 42%, according to the UNCTAD report. FDI normally involves one company taking control of an overseas one, typically through a merger or acquisition.

Meanwhile, American think tank, the Peterson Institute for International Economics has announced that China is falling short of its commitment to buy an extra $200bn (£146bn) worth of US goods over 2020 and 2021.

China agreed to buy the goods in a trade deal with the US agreed last January in exchange for reduced tariffs on $120bn worth of goods.

The agreement was seen as phase one of a deal aimed at resolving the trade war between the world’s biggest economies.

Login
guest
guest
0 Comments
Inline Feedbacks
View all comments
Previous Post

White House begins talks with lawmakers on Biden’s COVID-19 relief

Next Post

Breaking the Ex Gratia cycle: Who takes the risk?

Sign up for The Vaultz analytic wire

Get weekly news analysis from top editors at The Vaultz and stay informed on trending economic and business issues from across the globe.

Related Posts

China accuses US, Japan of ‘stoking division’
Asia

China accuses US, Japan of ‘stoking division’

April 17, 2021
China's economy grows by a record 18.3% in the first quarter
Asia

China’s economy grows by a record 18.3% in the first quarter

April 16, 2021
Alibaba shares jump after record $2.8bn anti-monopoly fine
Asia

Alibaba shares jump after record $2.8bn anti-monopoly fine

April 12, 2021
China considers mixing Covid vaccines to increase effectiveness
Asia

China considers mixing Covid vaccines to increase effectiveness

April 12, 2021
Alibaba shares jump after record $2.8bn anti-monopoly fine
Asia

China fines Alibaba record $2.75bn for alleged market abuses

April 12, 2021
Eleven killed as Myanmar protestors ‘fight soldiers with rifles’
Asia

Eleven killed as Myanmar protestors ‘fight soldiers with rifles’

April 8, 2021
China accuses US, Japan of ‘stoking division’
Asia

China accuses US, Japan of ‘stoking division’

by DerrickApril 17, 2021
COVID-19 case count drops, 42 new cases recorded
General News

COVID-19 case count drops, 42 new cases recorded

by Priscilla KorantengApril 17, 2021
President of the Ghana Independence Broadcasters Association (GIBA), Andrews Danso-Ahenkorah, has expressed the need for enacting broadcasting law.
General News

We need media regulations for development- GIBA

by Angeller AshongApril 17, 2021
BOG educates the public on dormant accounts
Banking

BOG educates the public on dormant accounts

by Stephen KotochieApril 17, 2021
African Union holds conference to fast-track local vaccine development
Africa

African Union holds conference to fast-track local vaccine development

by Stephen AbankwahApril 16, 2021
Sub-Saharan Africa needs $425 billion over the next 5 years- IMF
Africa

Sub-Saharan Africa needs $425 billion over the next 5 years- IMF

by Stephen KotochieApril 16, 2021
China accuses US, Japan of ‘stoking division’
COVID-19 case count drops, 42 new cases recorded
President of the Ghana Independence Broadcasters Association (GIBA), Andrews Danso-Ahenkorah, has expressed the need for enacting broadcasting law.
BOG educates the public on dormant accounts
African Union holds conference to fast-track local vaccine development
Sub-Saharan Africa needs $425 billion over the next 5 years- IMF
[/vc_row_inner]

Trending

  • Akuapem Poloo has been sentenced to three months in prison. This follows the social media sensation posting some naked photos of herself and her son

    Akuapem Poloo Sentenced, All hope not lost- Lawyer

    38 shares
    Share 15 Tweet 10
  • WTO calls for applications for its 2022 Young Professionals Program

    29 shares
    Share 12 Tweet 7
  • Revise laws on stability clauses in petroleum agreements, the sector is de-risked- Dr Ali-Nakyea

    19 shares
    Share 8 Tweet 5
  • Stonebwoy applauds government for fixing Tema motorway street lights

    15 shares
    Share 6 Tweet 4
  • TUC Starts Processes for Negotiation Of 2021 Minimum Wage

    80 shares
    Share 32 Tweet 20
Snow

The Vaultz News

Copyright © 2020 The Vaultz. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy & Policy
  • Contact

Follow Us

No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • Sports
  • Arts & Lifestyle
    • Lifestyle
    • Fashion
  • 20MOBPL2D

Copyright © 2020 The Vaultz. All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Discover the Details behind the story

Get an in-depth analysis of the news from our top editors

Enter your email address
The Vaultz News


This website uses cookies to enable, optimise and analyse site operations, as well as to provide personalised content and allow to connect to social media. By clicking "ACCEPT" you consent to the use of cookies for non-essential functions and the related processing of personal data. You can adjust your cookies and associated data processing preferences any time in our "Cookies settings". Please view our cookies policy to learn more about the use of cookies on our website.

Cookies settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.

SAVE & ACCEPT
0
0
Would love your thoughts, please comment.x
()
x
| Reply