01/02/2021 China Overtakes U.S.

as World’s Leading Destination for Foreign Direct Investment - WSJ

ECONOMY

China Overtakes U.S. as World’s Leading Destination

for Foreign Direct Investment
Flows into America nearly halved as Covid-19 dragged on the economy in 2020

By Paul Hannon and Eun-Young Jeong

Updated Jan. 24, 2021 7 40 pm ET

China overtook the U.S. as the world’s top destination for new foreign direct investment last
year, as the Covid-19 pandemic amplifies an eastward shift in the center of gravity of the global
economy.

New investments by overseas businesses into the U.S., which for decades held the No. 1 spot,
fell 49% in 2020, according to U.N. figures released Sunday, as the country struggled to curb the
spread of the new coronavirus and economic output slumped.

China, long ranked No. 2, saw direct investments by foreign companies climb 4%, the United
Nations Conference on Trade and Development said. Beijing used strict lockdowns to largely
contain Covid-19 after the disease first emerged in a central Chinese city, and China’s gross
domestic product grew even as most other major economies contracted last year.

The 2020 investment numbers underline China’s move toward the center of a global economy
long dominated by the U.S.—a shift accelerated during the pandemic as China has cemented its
position as the world’s factory floor and expanded its share of global trade.

While China attracted more new inflows last year, the total stock of foreign investment in the
U.S. remains much larger, reflecting the decades it has spent as the most attractive location for
foreign businesses looking to expand outside their home markets.

TO READ THE FULL STORY

https://www.wsj.com/articles/china-overtakes-u-s-as-worlds-leading-destination-for-foreign-direct-investment-11611511200?mod=hp_lead_pos1 1/4
01/02/2021 China Overtakes U.S. as World’s Leading Destination for Foreign Direct Investment - WSJ

SUBSCRIBE

SIGN IN

Continue reading your article with

a WSJ membership

€1 for 2 Months

VIEW MEMBERSHIP OPTIONS

WHAT TO READ NEXT...

WORLD
IMF Raises Global Economic Growth Forecast but Says Outlook Remains Uncertain

https://www.wsj.com/articles/china-overtakes-u-s-as-worlds-leading-destination-for-foreign-direct-investment-11611511200?mod=hp_lead_pos1 2/4
01/02/2021 China Overtakes U.S. as World’s Leading Destination for Foreign Direct Investment - WSJ
OBITUARIES

Larry King Dies at 87; Longtime Talk-Show Host Was Reportedly Hospitalized With Covid-19

◆ WSJ EXCLUSIVE
Argentine Finance Minister Seeks $44 Billion IMF Debt Deal Without Belt-Tightening

WORLD
Exiled Uighurs Fear China’s Reach Will Erode Turkish Haven

RUSSIA

Russia’s Putin Faces Rising Discontent Amid Alexei Navalny Protests

https://www.wsj.com/articles/china-overtakes-u-s-as-worlds-leading-destination-for-foreign-direct-investment-11611511200?mod=hp_lead_pos1 3/4
01/02/2021 China Overtakes U.S. as World’s Leading Destination for Foreign Direct Investment - WSJ

Independent of The Wall Street Journal newsroom

MARKETWATCH

GameStop short squeeze fuels new stock-market services tracking Reddit messages

Independent of The Wall Street Journal newsroom

MANSION GLOBAL

Phil Collins’s $40 Million Miami Beach Mansion Goes Into Contract

https://www.wsj.com/articles/china-overtakes-u-s-as-worlds-leading-destination-for-foreign-direct-investment-11611511200?mod=hp_lead_pos1 4/4