Foreign Direct Investments in the United States by the end of the “coronavirus” 2020 fell by half. China recorded a slight increase in this indicator.
China become the top destination for new Foreign Direct Investments in 2020, overtaking the United States. The Wall Street Journal writes about this via RBC with reference to data from the UN Conference on Trade and Development.
New investments by foreign companies in the United States have outnumbered all other countries for decades. However, in 2020, their amount fell by 49%. The leader in this indicator was China, which managed to attract 4% more direct foreign investment than last year.
Foreign direct investment includes, for example, the construction of new factories by foreign companies, expansion of their presence in the country, or their acquisition of local companies. Daniel Rosen, a partner at independent research firm Rhodium Group, said the sharp drop in foreign investment in the US last year reflects a wider economic downturn due to the fallout from the coronavirus pandemic.
However, the total volume of foreign investment in the US remains much higher than in China, the newspaper writes. The flow of foreign investment in the United States peaked in 2016, when $ 472 billion was invested in the American economy. In the same year, foreign investment in China amounted to $ 134 billion.Since 2017, investment in the Chinese economy has been growing, while in the United States it has declined annually.
Investments in the European Union decreased by 71% in 2020. At the same time, the UK and Italy, where there was a high mortality rate and a complete lockdown against the background of COVID-19, did not attract new foreign investment at all. In Germany, the drop was 61%.