Foreign businesses are turning their backs on the United States, taking benefit of China’s booming overall economy and superior management of the Covid-19 pandemic.
Direct financial commitment in the US by international companies plummeted 49% to $134 billion past yr, according to a report unveiled Sunday by the United Nations Meeting on Trade and Improvement. By distinction, overseas direct expense in China grew by 4% to $163 billion in 2020.
2020 marked the to start with year in background that foreign direct financial commitment in China overtook that of the US, in accordance to the UN. China is now the world’s major receiver of overseas companies’ investments.
While Covid-19 was a significant factor in international immediate financial investment tumbling in the US — and most destinations all around the earth — the drop-off in foreign companies’ American investments commenced properly ahead of the pandemic.
Right after hitting a substantial