China is World’s Top Destination for Foreign Direct Investment
China has overtaken the United States as being the world’s top destination for FDI or foreign direct investment in the first half of the year. according to the United Nations Conference on Trade and Development, China have absorbed more than US$ 59 billion in foreign direct investment slightly down from US$ 60 billion a year earlier.
While the United States have attracted around US$ 57 billion in the first half of the year which is down by 39 percent compared from the year before. Based on reports given by the United Nations Conference on Trade and Development China had US$ 116 billion attracted in FDI while the United Stated has US$ 227 billion attracted.
For the first six months in 2012 developing economies got half of all FDI flows which match the developed world for the very first time. This is due to the shift in the balance that is driven by decline of FDI that is going in the United States and the European Union, foreign direct investment inflows dropped 8 percent globally to US$ 668 billion compared to last year. This reflects a protracted weak external demand with consequently strong negative effect on exports plus an increasing uncertainty on high growth emerging countries.