GENEVA, Oct. 15 -- China becomes the largest recipient of foreign direct investment (FDI) in the first half of 2018, attracting an estimated 70 billion U.S. dollars in inflows, according to the latest investment trends monitor published on Monday by the United Nations Conference on Trade and Development (UNCTAD).
According to the UNCTAD, global FDI fell by 41 percent during the period, to an estimated 470 billion dollars, from 794 billion dollars in the same period in 2017, mainly due to large reparations by the United States parent companies of accumulated foreign earnings from their affiliates abroad following tax reforms
"The big picture of global FDI flows remains gloomy which is a bit different to what we forecast earlier," said James Zhan, director of the UNCTAD's Division on Investment and Enterprise, during a press conference in Geneva.
However, Zhan noted that "the investment flows to China continue to increase despite mounting trade tension, and increasing cost of production".
China emerged as the largest global FDI recipient, with an increase of 6 percent, followed by the UK, lifting inflows to 66 billion dollars, and the United States, 46 billion dollars.
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