Foreign Direct Investment (FDI) has been rather slow with the coronavirus outbreak in the word in 2020 but this being said the china has still thrived with FDI’s being the largest recipient of them by bringing in 163 billion is inflows.
Compared to the United States 134 billion china has done well by getting an inflow of 163 billion. This comparison was as the USA pulled a massive 251 billion in FDI’s in 2019 and china was only a 140 billion.
The Chinese economy took its hit with the corona virus but picked itself up on the 4th quarter and managed to bring it back to normalcy and even grow in the year 2021. When processing official data it show that china is the only major economy in the world to avoid a contraction last year.
China being the world’s second largest economy has given the world a shock by recovering from the pandemic jolt quickly and so smoothly as the pandemic wasn’t the only hit to their economy but the strained relations with the United States did not help in any way.
According to the UNCTAD report things were not looking good in 2020 as global FDI had collapsed by 42% which was estimated at 859 billion from the 1.5 trillion it was at in 2019. “FDI finished 2020 more than 30% below the trough after the global financial crisis in 2009”, the UNCTAD said.
