Flows into America nearly halved as Covid-19 dragged on the economy in 2020
China overtook the U.S. as the world’s top destination for new foreign direct investment last year, as the Covid-19 pandemic amplifies an eastward shift in the center of gravity of the global economy.
New investments by overseas businesses into the U.S., which for decades held the No. 1 spot, fell 49% in 2020, according to U.N. figures released Sunday, as the country struggled to curb the spread of the new coronavirus and economic output slumped.
China, long ranked No. 2, saw direct investments by foreign companies climb 4%, the United Nations Conference on Trade and Development said. Beijing used strict lockdowns to largely contain Covid-19 after the disease first emerged in a central Chinese city, and China’s gross domestic product grew even as most other major economies contracted last year.
The 2020 investment numbers underline China’s move toward the center of a global economy long dominated by the U.S.—a shift accelerated during the pandemic as China has cemented its position as the world’s factory floor and expanded its share of global trade.
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WNU Editor: Covid-19 and lockdowns aside, when I look at the tax and regulatory environment in a state like California. A place where the state government is now debating a proposal to tax individuals as residents if they stay in the state for more than 60 days, and to then go after them for state taxes for the next 10 years even if they live in another country .... you can take this to the bank .... no one outside the U.S. is going to put money in the U.S..
Add in other factors like a massive stock market bubble, the Federal Reserve printing trillions in dollars, massive municipal/state/federal debts, pension obligations, a new White House and Congress who do not inspire confidence in much of the business community .... yeah .... there are many better places in the world to put your money.
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