China has passed the US as the country with the highest foreign investment last year. The coronavirus has limited the influx of foreign investments into America.
China surpasses the US as the top foreign investment destination
The United States has been displaced as the top country for investments on a global scale. This figure was released on Sunday by the United Nations commission on foreign investments.
Fresh investments into the US from foreign firms declined by almost half in December. This situation is heavily linked to the negative effect of the coronavirus on the US economy. These latest UN statistics, however, show that China has witnessed a 5% increase in foreign firms’ investments which allows it to jump to the first position.
The latest results and figures show that the influence of China cannot be underrated on the economic sector globally. The statistics show that China has $170 billion in economic inflows in December, compared to $140 billion gotten by the US. This report was compiled by the United Nations Conference on Trade and Development to assess the impact of coronavirus on world economies.
The US remains the nation with the highest foreign investments
In 2019, the United States got about $250 billion in fresh foreign investment compared to about $150 received by China. Although China may have leapfrogged the US in new foreign investments, the US remains on top in global investment ratios.
This shows years spent by the US to attract the best foreign investments to the country. It can also be linked to the capitalist and liberal economic atmosphere in America. Economic experts said the figures show the gradual move by China to dominate the foreign economy which has always been occupied by the US.
China is presently having a trade tussle with the US and has been seen to permanently move to the top position in foreign investments. The administration of Donald Trump has warned American businesses to leave China and establish themselves fully in the US.