The report shows that global foreign direct investment (FDI) fell slightly by 2% to $ 1.75 trillion in 2016, and global foreign direct investment is expected to grow by 5% in 2017 to nearly $ 1.8 trillion. The report also shows that in 2016 China’s foreign investment hit a record high for the first time jumped to the world’s second largest investor.
“The road to recovery for foreign direct investment is still rugged, but we are cautiously optimistic that although the report predicts a slight increase in 2017, other factors may also be affected,” said United Nations Secretary-General of the United Nations Conference on Trade and Development, To the size of the recovery, such as geopolitical risk rise and policy uncertainty.
It is noteworthy that the report shows that China’s foreign investment has entered a stage of rapid growth. Foreign investment soared 44% in 2016, reaching $ 183 billion. China is the second largest foreign investor in the world, more than 36% of attracting foreign investment. China has also become the largest investor in the least developed countries, with three times the amount of investment in the second largest country.
In addition, the report shows that China’s absorption of foreign investment remained at a record high of $ 134 billion, ranking third in the world. Although China’s foreign capital inflows down 1% from the previous year, the report shows that China’s foreign inflows are still at historically high levels.
“More importantly, the structure and quality of China’s attracting foreign investment are constantly optimized, and FDI inflows in non-financial services sectors continue to grow, while manufacturing FDI is further turning to high-end, and FDI is an important driving force for China’s industrial upgrading.” The United Nations Conference on Trade and Development Director of the Investment and Enterprise Division, Zhan Xiaoning, editor-in-chief of the World Investment Report, pointed out that China’s policy environment for foreign investment is currently in an important transitional period. One is from the traditional foreign management system to the new negative list based on the open foreign investment management system transition; the second is from preferential policies to investment facilitation-oriented transition.
He pointed out that with the “one way” and the international production capacity to promote cooperation, is expected in 2017 China’s foreign investment will continue to maintain rapid growth, will continue to be higher than the absorption of foreign investment. At the same time, we should also see that the quality and structure of China’s foreign investment still have the potential to be further improved. We should speed up the shift from point to decentralized investment to chain and cluster investment, focusing on building our own global integrated production system. The ability to deploy and control resources on a global scale, and the competitiveness of the global marketplace. In addition, China’s foreign investment in urgent need to strengthen the overseas risk prevention and control mechanism.
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