China overtakes US as top foreign investment destination: UNCTAD report

As per United Nations Conference of Trade and Development (UNCTAD) report, China has overtaken the United States (US) as the top destination for foreign direct investment (FDI).
US  was on top as foreign investment destination for past 11 years i.e. since 2003.
Key facts from UNCTAD report

  • In 2014, foreign firms had invested 128 billion dollars in China compared to 86 billion invested in the US.
  • The growth in China’s foreign investment had benefited the services sector as manufacturing had slowed in 2014.
  • Hong Kong stood at the second spot after China and ahead of US with foreign investment of 111 billion dollars.
  • Globally, foreign investment had fallen by 8% to a total of $1.26trillion in 2014. The reasons cited for this decline was partly due to the fragility of the global economy due geopolitical risks.
  • In 2014, the foreign investment in developing nations had increased by 4%, whereas developed nations saw a decline of 14 percent, mostly due to the large fall in the US.

Top 10 foreign investment destinations in 2014

Rank Country FDI*
1 China 128
2 Hong Kong 111
3 United States 86
4 Singapore 81
5 Brazil 62
6 United Kingdom 61
7 Canada 53
8 Australia 49
9 Netherlands 42
10 Luxembourg 36

Note: * in billion dollars.



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