China Tops U.S. in Foreign Direct Investment

China overtook the US as a top global destination for foreign direct investment (FDI) last year while the Asia-Pacific region attracted more investment than any other developing region, a UN report said last week.

China's strong manufacturing industry helped the country attract FDI last year worth US$53.5 billion, compared with US$52.7 billion in 2002, the UN Conference on Trade and Development (UNCTAD) said in its annual report on investment flows.

Meanwhile, foreign investment in the US, traditionally the largest recipient of such money, plunged by 53 percent last year to reach US$30 billion, the lowest level in 12 years, according to data from UNCTAD's World Investment Report 2004.

Flows to the Asia-Pacific region as a whole rebounded over the year to US$107 billion from US$94 billion in 2002 driven by strong economic growth and a better investment environment, the agency said.

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