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In 2020, China jumps to the world’s largest inflows of foreign capital, US media: China becomes a key growth market
2021-01-25
Allocate funds to invest in large-scale infrastructure projects to promote economic growth.
Source: Associated Press
Overseas Network, January 25 According to the “Global Investment Trend Monitoring” report released by the United Nations Conference on Trade and Development (UNCTAD) on the 24th, in 2020, China’s foreign direct investment will surpass the United States and become the entry country for largest foreign capital in the world. CNN published an article saying that seeing China’s economic boom and the effective response to the new corona epidemic, foreign companies have expanded their business in China. The Wall Street Journal noted that foreign capital sees China as a growth market for key products.
According to the “Global Investment Trends Monitoring” report, in 2020, China will attract USD 163 billion (approximately RMB 1,056.4 billion) of foreign investment, representing a 4% increase compared to 2019, and its global share has significantly increased to 19%. . As the world’s largest inflow of foreign capital in 2019, the United States attracted $ 134 billion (about 868.4 billion yuan) in 2020, a drop of 49%. Overall, due to the impact of the new corona pneumonia epidemic, foreign direct investment worldwide fell 42% in 2020, the lowest level since the 1990s, and even a 30% drop since the 1990s. 2009 financial crisis at the height of the crisis.
Regarding the increase in the attractiveness of China’s foreign capital under the epidemic, CNN cited the report as an analysis, which is mainly due to China’s economic growth and rapid recovery after the epidemic. In 2020, China’s gross domestic product (GDP) increased 2.3% from the previous year, when most of the world’s major economies were shrinking. To curb the spread of the virus, China has implemented strict epidemic prevention measures and allocated funds to invest in large-scale infrastructure projects to promote economic growth.
Zhan Xiaoning, Director of the Business and Investment Division of the United Nations Conference on Trade and Development, noted that foreign capital inflows to China have steadily increased over the years. After the outbreak, the Chinese economy took the initiative to resume growth and became a highlight of attracting foreign investment. The EU-China Investment Agreement also boosted investor confidence.
The Wall Street Journal reported on the 24th that as China’s economic recovery has strengthened, foreign companies have expanded their business in China and view China as a key market for product growth. Wal-Mart said it will invest 3 billion yuan in Wuhan in the next five years to increase the layout of community retail; Starbucks will invest 150 million US dollars (about 970 million yuan) to build a bakery factory and an innovation park in Kunshan; Tesi La is expanding the production capacity of its Shanghai plant and adding a research institute; international pharmaceutical companies, including AstraZeneca, are preparing to establish their regional headquarters in China.
Bloomberg quoted Adam Lysenko, an analyst at Rongding Consulting Group, as saying that foreign companies, including American ones, will continue to invest in China, “because during the global epidemic, China remains one of the most resilient economies, and China is the future.” . the growth potential is even stronger than most other major economies. ” (Overseas Net Zhang Qi)
Publisher: Zhiyang
