China has overtaken the US as the world’s top destination for new foreign direct investment last year, as the Covid-19 pandemic amplifies an eastward shift into the center of gravity of the global economy.
New investments by foreign companies in the US, which have been ranked No. 1 for decades, fell by 49% in 2020, according to UN figures released on Sunday, as the country struggles to limit the spread of the new coronavirus and economic production has fallen. .
China, which has long been ranked 2nd, has seen foreign direct investment increase by 4%, the United Nations Conference on Trade and Development said. Beijing used strict blockades to contain much of Covid-19 after the disease first appeared in a central Chinese city, and China’s gross domestic product grew even as most other major economies contracted last year.
The 2020 investment numbers underscore China’s move toward the center of a long-dominated US economy – an accelerated change during the pandemic, as China strengthened its global factory position and expanded its share of global trade.
While China attracted more new entrants last year, the total stock of foreign investment in the US remains much higher, reflecting the decades it has spent as the most attractive location for foreign companies looking to expand outside markets. their origin.