China received more foreign investment last year than the US, says the UN

The Chinese economy brought in more foreign direct investment than any other country last year, pulling the United States off the top of the list.

China brought in $ 163 billion in revenue last year, compared to $ 134 billion attracted by the United States, the United Nations Conference on Trade and Development said in a report released Sunday. In 2019, the US received $ 251 billion in revenue, and China received $ 140 billion.

Overall, the report found that foreign direct investment has declined globally as the Covid-19 pandemic has brought large and small countries into virtual stands.

FDI fell by 42% in 2020 to $ 859 billion, down 30% even from the depths of the financial crisis of 2009. The economic measure accounts for investments in a country made by people and businesses in other countries, such as construction a factory or the opening of a satellite office.

Developed countries were hit harder last year than so-called “developing” countries. Investment in the US fell by 49%, slightly below the average of developed countries, by 69%.

FDI in developing countries fell by 12% relatively moderately. China, included in this list, actually recorded a small 4% increase in its revenues.

The European Union saw a two-thirds drop in FDI, according to the report, the UK saw no new entrants. The UK has been particularly affected by coronavirus.

China managed to control the coronavirus largely within its borders last year, despite being the first nation affected by the deadly disease.

Strict blockade measures, early mass testing and an abundance of personal protective equipment have been credited for the relatively low number of deaths in the country.

Since the beginning of the pandemic, China has had less than 100,000 confirmed cases of Covid-19 and suffered about 4,800 deaths from the disease, according to Johns Hopkins University.

The United States, which has a much smaller population, has nearly 25 million cases and more than 400,000 deaths.

Despite China overtaking the US in the flow of foreign direct investment in 2020, the total stock of foreign investment remains much higher in the US than in China, according to data compiled by the Organization for Economic Cooperation and Development.

Other economic data also suggested that China bore the brunt of the pandemic more skillfully than its counterparts. Beijing reported a 2.3% increase in GDP in 2020 earlier this month and is expected to be the only major economy to report a positive annual growth rate.

The United Nations report comes a day before Chinese President Xi Jinping addresses a virtual meeting of the World Economic Forum. President Joe Biden is not expected to attend the event.