China Overtakes U.S. As Top Spot For Foreign Investment

Jan. 13, 2005
By Agence France-Presse China overtook the United States as a top global destination for foreign direct investment (FDI) in 2003, while the Asia-Pacific region attracted more investment than any other developing region, a United Nations report said ...
By Agence France-Presse China overtook the United States as a top global destination for foreign direct investment (FDI) in 2003, while the Asia-Pacific region attracted more investment than any other developing region, a United Nations report said Sept. 22. China's strong manufacturing industry helped the country attract FDI last year worth $53.5 billion, compared with $52.7 billion in 2002, the United Nations Conference on Trade and Development (UNCTAD) said in its annual report on investment flows. Meanwhile, foreign investment in the United States, traditionally the largest recipient of such money, plunged by 53% last year to reach $30 billion, the lowest level in 12 years, according to data from UNCTAD's World Investment Report 2004. Flows to the Asia-Pacific region as a whole rebounded over the year to $107 billion from $94 billion in 2002, driven by strong economic growth and a better investment environment, the agency said. China was expected to continue to attract foreign companies, analysts said. "According to our analysis, FDI in China has not peaked, although their economic growth rates have fallen," UNCTAD economist James Zhan said. "Prospects for a further rise in foreign direct investment flows to Asia and the Pacific in 2004 are promising," UNCTAD's Deputy Secretary General, Carlos Fortin, said in a statement. But the distribution of the new wealth was uneven across the region, with most of the money -- $72 billion -- concentrated in northeast Asia. The manufacturing sector remained the dominant factor that pulled investment into China, but a rise in investment in the services industry was noted elsewhere in line with the global trend, UNCTAD said. Services, including finance, tourism, telecommunications and information technology, formed a growing proportion of foreign direct investment stock in the region -- up to 50% in 2002, the most recent figure available, from 43% in 1995, UNCTAD said. Copyright Agence France-Presse, 2004

Popular Sponsored Recommendations

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Gain a competitive edge with real-world lessons on private 5G networks

Nov. 16, 2023
The use of private networks in manufacturing applications is rapidly growing. In this paper, we present valuable insights and lessons learned from the field with the goal of enhancing...

The Ultimate Ecommerce Excellence Checklist

Oct. 2, 2023
Scaling ecommerce operations is no easy task when your business is moving fast. Assess your current ecommerce maturity level and set optimization priorities with this practical...

How to Build Zero-Cost On-Site Solar and Storage Projects

Nov. 25, 2023
The Inflation Reduction Act offers tax credits, incentives, and financing that enable no-cost projects. In Enel’s eBook, discover the critical role that incentives play in your...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!