China overtakes U.S. as a magnet for investors
China has for the first time surpassed the U.S. as the top destination for foreign direct investment, an important measure of a country’s economic health.
Foreign investment in the U.S. fell by 49 percent in 2020 to $134 billion, according to figures released by the United Nations Conference on Trade and Development. China notched a slight 4 percent rise to $163 billion, led by investments in the country’s high-tech sector and in mergers and acquisitions.
Foreign direct investment plunged for most countries as they struggled to contain the virus. Investment in Europe was wiped out, and globally, the flow of foreign investment altogether fell by 42 percent.
Context: For years, China’s manufacturing and rising consumer base have attracted foreign companies, but stringent guidelines around foreign ownership discouraged some. Now, the clout of Chinese consumers is becoming too hard to ignore.
The New York Times