China Becomes World’s Second Biggest Destination for Foreign Capital Flows


A new report indicates that China was the world’s second biggest destination for foreign capital in-flows and the third biggest outbound foreign investor in 2017.

The “2018 World Investment Report” released by the United Nations Conference on Trade and Development (UNCTAD) on 6 June indicates that China attracted USD$136 billion in foreign capital in 2017, making it the world’s second biggest investment destination.

China’s outbound foreign investment fell to $125 billion, as Beijing cracked down on “irrational investment” by cash-flush Chinese companies in overseas vanity acquisitions.

It nonetheless remained the world’s third biggest source of outbound foreign investment, as well as the biggest outbound foreign investor amongst developing nations.

James Zhan, Senior Director of Investment and Enterprise at UNCTAD, said that China had launched a series of policies to attract foreign capital and facilitate investment in recent years, and as a consequence would remain a leading destination for foreign investment in future.