China Surpasses U.S. in International Investments

A Chinese national flag flutters against the office buildings in Shanghai, China.  (AP Photo/Andy Wong, File)

As the United States struggles to get the raging coronavirus pandemic under control, China has become the new center of foreign direct investment.

China took draconian measures to combat the virus, including placing tens of millions in lockdown, and now is experiencing a surging economy as daily life returns to somewhat normal, while countries throughout Europe, Africa and the Americas are being battered by COVID-19.

While foreign investment in the U.S. slumped by 49% in 2020, China saw direct investments grow by 4%, indicating a further shift to East Asia as the center of the global economy, the Wall Street Journal reported.

The pandemic accelerated this shift as China flexed its manufacturing and purchasing power while other countries desperately tried to prevent mass unemployment. Foreign investment in the U.S. peaked in 2016, and has steadily fallen while investment in China continues to rise.

Nonetheless, the United States has a far larger total stock of foreign investment than China, reflecting the decades the U.S. served as the most desirable market for foreign companies seeking to expand.



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