China has overtaken the United States in new foreign direct investment, according to figures released by the United Nations on Sunday
Last year, new investments in the United States by overseas companies dropped by almost half, leaving it in the top spot.
In contrast, direct investment in Chinese firms grew by 4%, according to UN figures, bringing it to number one in the world.
The high ranking reflects China’s growing economic influence in the world.
The United Nations Conference on Trade and Development (UNCTAD) said in its report that China invested 16 163 billion last year, compared to 4 134 billion in the United States. The dollars have arrived.
In 2019, new foreign direct investment in the United States received 1 251 billion, while China received 140 140 billion.
Although China ranks first in new foreign investment, the United States is still at the top of total foreign investment.
It reflects the decades it has spent in becoming the most attractive place for foreign businesses to grow their businesses.
But experts say the figures point to China’s efforts to move toward the center of the global economy, which has long been dominated by the United States, the world’s largest economy.
According to the UK-based Center for Economics and Business Research (CEBR), China, which is currently embroiled in a trade war with the United States, could reach number one by 2028.
Decline in the Trump era
In 2016, foreign investment in the United States peaked at an estimated 2 472 billion. At that time, foreign capital alone was ڈالر 134 billion in China.
Since then, investment in China has steadily increased, while it began to fall in the United States in 2017.
The Trump administration has encouraged US companies to leave China and resume operations in the United States.
It also warned Chinese companies and investors that they would face new scrutiny when investing in the United States on the basis of national security.
Although the US economy has struggled since the COD-19 epidemic last year, China’s economy has picked up speed.
According to official data released this month, China’s economic growth in gross domestic product (GDP) grew by 2.3% in 2020.
This has made China the world’s single largest economy, not shrinking in the past year. Many economists are puzzled by the pace of its recovery, especially given its strained relations with the United States.
According to the UNCTD, overall foreign direct investment (FDI) declined dramatically in 2020, to 42%. FDI usually involves a company that usually takes control of an overseas company through mergers or acquisitions.
The UK has seen a 100 per cent drop in new foreign investment over the past year, with non-investment of 45 45 billion in 2019 falling to minus 1.3 billion last year.