The latest investment monitoring report released by the United Nations Conference on Trade and Development on the 27th showed that the global “foreign direct investment” in the first half of this year fell by nearly 50% year-on-year. It is expected that this value will fall by 30% to 40% throughout the year, and flows into China. The scale of “foreign direct investment” in China has remained relatively resilient, even growing against the trend.
The UNCTAD report shows that due to the “blockade” measures adopted by various countries during the COVID-19 pandemic, existing investment projects have slowed down, and concerns about the global economic outlook have caused multinational companies to reassess whether to invest in new projects.
In general, in the first half of this year, the total scale of global “foreign direct investment” was US$399 billion, a year-on-year decrease of 49%, of which “foreign direct investment” flowing into developed economies was US$98 billion, a year-on-year decrease of 75%
Among them, the inflow into the United States was 51 billion U.S. dollars, a decrease of 61% year-on-year; developed European economies have experienced a rare phenomenon of “negative inflows” of foreign capital in history.
In the same period, “foreign direct investment” inflows into global developing economies was US$296 billion, a year-on-year decrease of 16%.
The report shows that, driven by cross-border M&A transactions in the fields of information products and e-commerce, “foreign direct investment” inflows into China in the first half of this year was US$76 billion, a decrease of only 4% year-on-year, and the scale of foreign capital inflows remained relatively resilient.
As of September this year, China’s attraction to “foreign direct investment” has shown an increasing trend compared to the same period last year, with an increase of 2.5%.
The analysis believes that the reason why China’s foreign capital inflows can maintain a relatively high level is that China is one of the first few countries to contain the epidemic, and the other is that the Chinese government has adopted effective investment facilitation measures.
