Investments Entering China Reach 163 Billion US Dollars, Far Outperforming The United States

Illustration. (Photo: Unsplash)

JAKARTA - China became the largest recipient of foreign direct investment (FDI) in 2020 when the corona virus outbreak spreads throughout the world throughout the year, with China's economy absorbing capital inflows of US $ 163 billion.

The inflow of capital into China was $ 163 billion last year, higher than the $ 134 billion withdrawn by the United States, the United Nations Conference on Trade and Development (UNCTAD) said in a report released on Sunday January 24.

As of 2019, the United States has received $ 251 billion in foreign direct capital inflows and China received $ 140 billion.

China's economy boomed in the fourth quarter, with growth beating expectations while ending the severe coronavirus attack in 2020 in great shape and remaining poised to expand further this year even as the global pandemic continues.

China's gross domestic product grew 2.3 percent in 2020, official data showed last week, making China the only major economy in the world to avoid last year's contraction.

The world's second-largest economy has surprised many with the speed with which it is recovering from the coronavirus shock, especially as policymakers must also navigate tense US-China relations in trade and other areas.

Overall, global FDI has fallen in the past year, down 42 percent to around US $ 859 billion, from US $ 1.5 trillion in 2019, according to the UNCTAD report.

"FDI completed 2020 more than 30 percent below the trough after the global financial crisis in 2009," said UNCTAD, quoted from Antara, Monday 25 January.

FDI flows plunged 37 percent in Latin America and the Caribbean, fell 18 percent in Africa, and fell 4.0 percent in developing Asian countries, the report added.

East Asia recorded a third of global FDI in 2020, while FDI flows to developed countries plunged 69 percent.