The report of the United Nations Conference on Trade and Development (UNCTAD) released on 15th showed that FDI inflows in the first half of the year had risen by 6% per cent, totalling more than $70 billion, to become the world's largest inflow of foreign direct investment.
The global Investment Trends Monitoring Report, released in Geneva on the day of UNCTAD, showed that global FDI totaled about $470 billion in the first half of 2018, compared with a 41% drop in the same period last year, affected by U.S. tax policy.
Zhan, director of the Investment and Enterprise Division at UNCTAD, said at a news conference that this was a sharp decline in global FDI following a 23% decline last year, and that its overall level is at a record low of at least 10 years. China's attracting foreign direct investment remains a growing trend relative to the sharp decline in global FDI.
Zhan said that China to increase investment, and further open the domestic market to foreign investment, not only through the free trade zone to lead the national foreign investment growth, and the western region to absorb foreign investment is not reduced, which is the main reason for China's foreign capital inflow growth. The decline in global FDI has been particularly pronounced in developed countries, according to data. FDI inflows to developed countries in the first half of this year fell by 69% compared with last year, while FDI inflows to developing economies fell by 6%.
At the same time, the total amount of foreign capital absorbed by developing economies accounted for 66% of global FDI flows, ranking at the highest level in history.
From a regional perspective, the region attracted more than half of the world's FDI in the first half of the year, while Europe and North America were among the biggest declines in foreign investment inflows. Zhan said global greenfield investment in the first half of this year, the new investment, has rebounded from a relatively low level over the same period last year and is expected to have a positive impact on global FDI in the second half. But at the same time, trade conflicts, geopolitical risks, and so on, can still give a lot of uncertainty about global investment performance.