China is the first country destination for foreign direct investment

January, 2015

The UNCTAD report on foreign direct investment puts China on the top position of the recipient countries, reaffirming the country's role as a special target of the phenomenon.

The figures released by the United Nations Conference on Trade and Development (UNCTAD) said China's role as a leading country in the destination of foreign direct investment. According to the classification contained in the report in question, in 2014, foreign companies have invested in China the equivalent of $ 128 billion, an increase of 3% annually. The result puts China ahead of the United States, recipient of 86 billion dollars of investment and finished third in the standings, after Hong Kong, with 111 billion dollars. In fourth and fifth place, respectively, Singapore ($ 81 billion) and Brazil (62 billion); the first European country in the ranking of UNCTAD for attraction of foreign investments is Great Britain, in sixth place. These results assume a particular relevance especially in the current economic environment, still burdened by the effects of the economic and financial crisis that began in 2008.
“There were structural changes of incoming flows in China, such as those related to the transition from manufacturing to services and those in the industry from those 'high-intensity work' to those 'high intensity technology”.

James X. Zhan

Director Investment and Enterprise Division at Unctad

In total, foreign direct investment declined by 8% globally, reaching a value of 1.26 trillion dollars, the second lowest level since the global financial crisis of 2008. In China, to promote the activities of small and medium-sized enterprises, the government has planned since last year targeted interventions in the economy. More recently, just in recent weeks, the Chinese central bank, the People's Bank of China, has entered into the system fifty billion yuan to be allocated to small Chinese companies affected by the slowdown of the national economy, whose growth forecasts amounted, according preliminary estimates, to 7%, instead of 7.5% as per goal of the past three years. In 2014, Chinese growth was 7.4% slightly below the expectations of the government, but at a slower pace since 1990.