Monday, January 25, 2021

China Has Overtaken The U.S. As The World’s Leading Destination for Foreign Direct Investment

Wall Street Journal: China Overtakes U.S. as World’s Leading Destination for Foreign Direct Investment 

Flows into America nearly halved as Covid-19 dragged on the economy in 2020 

China overtook the U.S. as the world’s top destination for new foreign direct investment last year, as the Covid-19 pandemic amplifies an eastward shift in the center of gravity of the global economy. 

New investments by overseas businesses into the U.S., which for decades held the No. 1 spot, fell 49% in 2020, according to U.N. figures released Sunday, as the country struggled to curb the spread of the new coronavirus and economic output slumped. 

China, long ranked No. 2, saw direct investments by foreign companies climb 4%, the United Nations Conference on Trade and Development said. Beijing used strict lockdowns to largely contain Covid-19 after the disease first emerged in a central Chinese city, and China’s gross domestic product grew even as most other major economies contracted last year. 

The 2020 investment numbers underline China’s move toward the center of a global economy long dominated by the U.S.—a shift accelerated during the pandemic as China has cemented its position as the world’s factory floor and expanded its share of global trade. 

Read more .... 

WNU Editor: Covid-19 and lockdowns aside, when I look at the tax and regulatory environment in a state like California. A place where the state government is now debating a proposal to tax individuals as residents if they stay in the state for more than 60 days, and to then go after them for state taxes for the next 10 years even if they live in another country .... you can take this to the bank .... no one outside the U.S. is going to put money in the U.S.. 

Add in other factors like a massive stock market bubble, the Federal Reserve printing trillions in dollars, massive municipal/state/federal debts, pension obligations, a new White House and Congress who do not inspire confidence in much of the business community .... yeah .... there are many better places in the world to put your money.

2 comments:

Anonymous said...

New York or California, liberals are all the same.


Baron Harkonnen : "Rabban! I place you in charge of Arrakis. It's yours to squeeze, as I promised. I want you to squeeze and squeeze and squeeze! ... Drive them! Drive them into utter submission! Do not show the slightest pity or mercy! Never stop. Go. Go!"

I want you to squeeze!

Funny thing happened on the way to the bank. Conservatives and non-swamp dwelling liberals all went to the same one for the same reason.

Rush, a conservative, went to Florida.

Your average high salaried sport stars of color domicile in Florida for the same reason. They're BIPOC, so you dare not criticize their decision or you will be canceled.

Now a white privilege kid like Hunter can afford to live California. If things get tough, the conversation will go something like this.

Hunter: "Daddy, Daddy, my rent went up. It is so hard to live! Waaaaaaaah!"

China Joe: "Quit your yapping brat. We'll just fleece the masses some more or I'll sell out the country again to get you a filthy lucre lucrative deal."


Anonymous said...

WNU- your editorial comments are spot on today.