China is now the number one country for foreign direct investment according to figures released by the United Nations on Sunday.
They replace America at the top
The US fell from number one as overseas investments declined by almost a half.
Meanwhile, investments in China in 2020 went up by 4%.
This is another indication of China’s growing influence on the world stage.
China had $163bn (£119bn) in inflows last year, compared to $134bn attracted by the US, the United Nations Conference on Trade and Development (UNCTAD) said in its report.
In 2019, the US received $251bn in new foreign direct investment while China received $140bn.
While China may be number one for new foreign investment, the US still dominates when it comes to total foreign investments.
This reflects the decades it has spent as the most attractive location for foreign businesses looking to expand overseas.
But experts say the figures underline China’s move toward the centre of the global economy which has long been dominated by the US, the world’s biggest economy.
China, currently involved in a trade war with the US, has been predicted to leapfrog it to the number one position by 2028, according to the UK-based Centre for Economics and Business Research (CEBR).
The report shows the US steady decline in foreign direct investment from 2016 when Donald Trump became the president.
He adapted a “America first” policy where the administration encouraged American companies to leave China and re-establish operations in the US.
Foreign investment in the US peaked in 2016 at $472bn, when foreign investment in China was $134 billion.
Since then, investment in China has continued to rise, while in the US it has fallen each year since 2017.