China Overtakes U.S. as World’s Leading Destination for Foreign Direct Investment

China Overtakes U.S. as World’s Leading Destination for Foreign Direct Investment

Global economic gravity has shifted to new foreign direct investment in China due to the new Covid-19 pandemic. These figures are higher than those produced in the U.S. as they struggle with combating the pandemic (Hannon & Jeong, 2021). The strict lockdown measures to contain the COVID-19 pandemic have seen the gross domestic product growth through direct investment in foreign countries. China expanded its share of global trade by attracting more inflows than the previous year. Although the U.S. was the leader in foreign investment, China has continued to rise. Our assignment writing help is at affordable prices to students of all academic levels and disciplines.

The Trump administration’s directives to exit the Chinese company were a significant setback as Chinese investors drew away. The strict directive downturn on the economic border was another setback for U.S. investment. The link between China and the U.S. has impacted the downturn of the economy, which has declined substantially (Hannon & Jeong, 2021). The open market economy has diminished rapidly as a result of the ongoing pandemic. China has no free-market economy, and its shift to investment in foreign companies, resulting in the acquisition, expansion, and building of new companies, has elevated its income.

China has expanded the investment flow of multinational companies, such as Adidas, despite the existing pandemic. Investors are very critical in committing capital to an economy they are sure will give back returns. The pandemic has greatly retarded foreign investment in the U.S. as companies rethink their future investment. The policies on global supply chains, foreign markets, and technology make companies invest in market areas where they’re best accommodated.

The rising demand for digital services, especially during this pandemic, has attracted considerable foreign investment. Western countries have suffered economic drop due to high mortality rates and deep economic contractions (Hannon & Jeong, 2021). China’s ability to control the pandemic that has overwhelmed the U.S. helped its economic borders to rebound. The introduction of global pharmaceutical and medical investment has sparked new global financial investment in Chinese foreign exchange.

References

Hannon, P., & Jeong, E. (2021). China Overtakes U.S. as World’s Leading Destination for Foreign Direct Investment. THE WALL STREET JOURNAL, 1. Retrieved 13 February 2021, from https://www.wsj.com/.

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To enhance learning and to encourage fluency in current events, students are expected to read about current events in business and to contribute international news articles and summaries.

The summary of the article should not go beyond one paragraph (about 5 sentences)
The article summary must be in your own words. The summary and the cited link (in APA format)
Articles are to be selected from the business press. Suggested sources include The Economist, the Wall Street Journal, The Financial Times, The New York Times, Newsweek, Fortune, Business Week, and Forbes etc.