Geneva: China has exceeded the US to become the world's largest recipient of foreign direct investment (FDI) in the first six months of 2012, a report released by the UN Conference on Trade and Development (UNCTAD) showed.
It's mainly due to a 39.2 percent fall in FDI flows to the US, compared to a three percent decline in China, said Zhan Xiaoning, director of UNCTAD Division on Investment and Enterprise, reported Xinhua.
However, early indications show that FDI flows to the US might be stronger in the second half of 2012, he said.
Zhan said China had claimed the world's top destination for FDI in 2003.
In the first six months of the year, China attracted USD59.1 billion in FDI while the US attracted USD57.4 billion, according to the latest Global Investment Trends Monitor.
As a result of the performance of the US and a decline of USD23 billion in flows to BRIC countries, the global FDI stood at USD668 billion, dropping by eight percent over the same period of 2011, said the report.
UNCTAD projects the FDI flows will, at best, level-off in 2012 at slightly below USD1.6 trillion, according to the report.
Zhan said the slow and bumpy recovery of the global economy, weak global demand and elevated risks related to regulatory policy changes continue to reinforce the wait-and-see attitude of many transnational companies toward investment abroad.
First Published: Wednesday, October 24, 2012, 13:59