European businesses rush to 'pour money', investment capital flow into China at all-time high

Although still behind the US, China has recorded its highest ever inflow of investment capital.

In 2022, investment flows into China reached a record high of 189 billion USD. (Source: Reuters)

According to a July 5 report by the United Nations, in 2022, the US will remain the top destination for businesses looking to expand their investments abroad.

However, investment flows have declined as companies cut back on overseas investments due to uncertainty and rising borrowing costs.

Foreign investment in the US is expected to fall from $388 billion in 2021 to $285 billion in 2022, largely due to a decline in foreign acquisitions of US companies.

In the near future, investment in the US could rebound as foreign companies take advantage of provisions in the Rebate Act that provide subsidies for investing in renewable energy projects.

Globally, new corporate overseas investment fell 12% to $1.3 trillion last year from 2021 and is unlikely to rebound sharply this year as executives are risk-averse. 2022 is set to be the worst year for overseas investment since 2009, excluding 2020.

However, the decline is still smaller than the level the United Nations fears due to the scale of economic uncertainty facing businesses, including the lingering effects of the Covid-19 pandemic, rising food and energy prices, and economic rivalry between the United States and China.

In 2022, developed economies as a whole saw investment flows fall by 37%. While still behind the US, China recorded its highest ever inflows of $189 billion, up 5%. Much of that increase came from European companies.

Source: https://baoquocte.vn/doanh-nghiep-chau-au-ao-ao-rot-tien-dong-von-dau-tu-vao-trung-quoc-cao-nhat-moi-thoi-dai-233679.html