China largest recipient of FDI in 2020, but ‘effects of coronavirus on investment will linger’

China’s US$163 billion in inflows last year compared to the US$134 billion attracted by the United States, according to a report released on Sunday

Overall, global foreign direct investment (FDI) collapsed in 2020, falling by 42 per cent to an estimated US$859 billion, from US$1.5 trillion in 2019

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China’s inflows last year compared to the US$134 billion attracted by the United States, the United Nations Conference on Trade and Development (UNCTAD) said in a report released on Sunday. Photo: Reuters

Published: 10:16am, 25 Jan 2021Updated: 12:05am, 26 Jan 2021

China was the largest recipient of foreign direct investment (FDI) in 2020 as the coronavirus outbreak spread across the world during the course of the year, with the Chinese economy having brought in US$163 billion in inflows.

China’s inflows last year compared to the US$134 billion attracted by the United States, the United Nations Conference on Trade and Development (UNCTAD) said in a report released on Sunday.

In 2019, the US received US$251 billion in inflows and China received US$140 billion.

Last week, China’s Ministry of Commerce said its FDI in US dollar terms – excluding financial sectors such as banking, securities and insurance sectors – grew to US$144.37 billion last year, the highest level since records began in 1983.

China’s economy picked up speed in the fourth quarter, with growth beating expectations as it ended a rough coronavirus-striken 2020 in remarkably good shape and remained poised to expand further this year even as the global pandemic rages unabated.

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