Statistics published this year show that in 2014 global FDI flows have fallen 8% with a total of $1.26tn being invested internationally, and for the first time since 2003, despite ongoing challenges in the domestic economy, China has overtaken the USA as the top destination for Foreign Direct Investment.
Alarmingly, year on year for the USA these figures represent a 63% drop from 2013, figures which represent an “off the cliff” moment compared to other developed nations suffering a 14% drop to an estimated $511bn in total share.
The American pathway back to success could also lead from China. Nationally, Chinese outbound FDI flow is catching up to (and this year should surpass) their inward investment flows. According to official sources, in 2014, $64bn was invested in Greenfield projects from China, and in the first 5 months of 2015, $44bn has already been invested from China - a 10% increase for the time of year.
In 2014, the USA secured only $9bn of Chinese Greenfield investment, how can development agencies increase their share and win more trade and FDI from the chinese marketplace?
The HMC Global team would recommend:
China has changed significantly since HMC opened their first China office in 1993. The quality of investment has improved dramatically with a greater focus on technology rather than resources. Many obstacles still exist, but HMC have both the experience and the resources to ensure that you get your share of the cake.