According to the 2018 World Investment Report published by UNCTAD, China was positioned the world’s second largest FDI recipient after United States and before Hong Kong. The country’s economy was ranked the second most appealing to multinational companies for 2017-2019, only behind the U.S. With steady growth for quite some time, FDI inflows continued to increase between 2016 and 2017, from USD 133 billion to USD 136 billion. This development is well-liked by liberalization programs, the speedy development of the high-tech sector and the establishment of free trade zones.
The absorption of FDI is area of the policy of opening China to the exterior world, aiming at creating a much better business environment, structure and distribution of investment. The government’s efforts to accomplish a much better geographical spread of investments have allowed Central China to see its FDI increase. Source: UNCTAD, Available data Latest. The UNCTAD Inward FDI Performance Index is dependant on a Ratio of the Country’s Share in Global FDI Inflows and its Share in Global GDP. The UNCTAD Inward FDI Potential Index is Based on 12 Structural and Economic Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk.
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