China Remains World’s Second Biggest Destination for Foreign Direct Investment in 2018: UNCAD Report


A new report from the United Nations indicates that China saw a rise in foreign direct investment (FDI) in 2018 amidst a trend of global decline.

The World Investment Report 2019 released by the UN Conference on Trade and Development (UNCTAD) on 12 June indicates that global FDI declined for the third consecutive year in 2018, falling 13% to USD$1.3 trillion as compared to $1.5 trillion the year previously.

Total FDI entering developed economies in 2018 fell by 27% to its lowest level since 2004. While the United States remained the biggest global destination for FDI in 2018, foreign investment inflows nonetheless fell 9% to $252 billion.

By contrast China’s FDI inflows lifted nearly 4% in 2018 to around $139 billion, making it the world’s second largest foreign direct investment destination.

According to UNCTAD key factors behind the increase include further opening of China’s investment environment alongside facilitation measures.