China overtook the United States as the world’s leading destination for new foreign direct investment last year as the Covid-19 pandemic intensified eastward shifts at the center of the global economy.
New investment by foreign companies in the United States, which has been at the forefront for decades, fell 49% in 2020, according to UN figures released Sunday as the country struggles to curb the spread of the new coronavirus and economic output plummets. .
China, long ranked second, foreign direct investment rose 4%, the UN Trade and Development Conference said. Beijing is using strict blockades to contain much of Covid-19 after the disease first appeared in a central Chinese city and China’s gross domestic product rose, even as most other major economies shrank last year.
Investment figures for 2020 highlight China̵
While China attracted more new flows last year, the total foreign investment stock in the United States remains much larger, reflecting the decades it has spent as the most attractive place for foreign companies looking to expand beyond their home markets.