Posted on 09/22/2004 10:35:07 PM PDT by Destro
Time is GMT + 8 hours Posted: 23 September 2004 0213 hrs
China overtakes United States as top destination for foreign investment
GENEVA : China overtook the United States as a top global destination for foreign direct investment (FDI) in 2003 while the Asia-Pacific region attracted more investment than any other developing region, a UN report said.
China's strong manufacturing industry helped the country attract FDI last year worth 53.5 billion dollars, compared with 52.7 billion in 2002, the United Nations Conference on Trade and Development (UNCTAD) said in its annual report on investment flows.
Meanwhile, foreign investment in the United States, traditionally the largest recipient of such money, plunged by 53 percent last year to reach 30 billion dollars, 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 107 billion dollars from 94 billion in 2002 driven by strong economic growth and a better investment environment, the agency said.
China was expected to continue to attract foreign companies, analysts said.
"According to our analysis, FDI in China has not peaked although their economic growth rates have fallen," UNCTAD economist James Zhan told journalists.
The outbreak of deadly Severe Acute Respiratory Disease (SARS) only had a marginal downward effect on investment activity as Asia emerged from the decline in foreign investment it had experienced since 2001, the report noted.
"Prospects for a further rise in foreign direct investment flows to Asia and the Pacific in 2004 are promising," UNCTAD's Deputy Secretary General, Carlos Fortin, said in a statement.
But the distribution of the new wealth was uneven across the region, with most of the money -- 72 billion dollars -- concentrated in north-east Asia.
Flows to south-east Asia rose 27 percent to 19 billion dollars, while the south merely received six billion dollars in FDI.
Resource-rich central Asia recorded 6.1 billion and 4.1 billion dollars flowed into the west.
The manufacturing sector remained the dominant factor that pulled investment into China, but a rise in investment in the services industry was noted elsewhere in line with the global trend, UNCTAD said.
Services, including finance, tourism, telecommunications and information technology, formed a growing proportion of foreign direct investment stock in the region -- up to 50 percent in 2002, the most recent figure available, from 43 percent in 1995, UNCTAD said.
UNCTAD said the growing tendency to shift some business activities overseas to places where labour costs are low but the workforce is skilled helped to raise the region's profile.
Asian companies were also growing in power and reach as investors in other regions, according to the Geneva-based agency.
China and India were joining Malaysia, South Korea, Singapore and Taiwan as sources of foreign direct investment, it said.
Asian firms, such as Hutchinson Whampoa of Hong Kong, Singapore's Singtel and Samsung of South Korea, again dominate the UNCTAD list of the top companies from the developing world.
- AFP
Let them eat cake.....
its liking pissing in the ocean. not that I don't appreciate Samsung, but the trend that is in place for the semiconductor industry is exactly where consumer electronics were 20 years ago.
You stated that free trade was equivalent to Marxism, which is simple foolishness - and your inability to either defend your erroneous statement or admit its false nature is causing you to go on yet another fun filled exercise in avoiding the issue.
That should be the only economic policy of a democratic republic. Not looking out for businesses or for business efficiency models.
Since in my view a successful economical system for a democracy maintains or expands the middle class base then the last 30 years as manufacturing declined and the middle class declined America's economy has been failing.
My thesis is that for free trade to be a "boon" it requires that the middle class to grow. It in fact has shrunk.
at least the korean workers can go to the flat and plasma panel plants to get a job - they aren't reduced to walmart and starbucks.
waah
My statement was not based on the Times article and Townhall is far from an authoritative source.
Well, then. How about coming up with one?
Bruce Bartlett is currently a senior fellow with the National Center for Policy Analysis of Dallas, Texas. Before joining the NCPA, he was deputy assistant secretary for economic policy at the U.S. Treasury Department, where he served from September 1988 to January 1993. In 1987 and 1988, Bartlett was a senior policy analyst in the Office of Policy Development at the White House.From 1985 through 1987, he was a senior fellow at the Heritage Foundation in Washington, D.C.
Between 1976 and 1984, Bartlett held numerous positions on Capitol Hill. In 1976, he served on the staff of Rep. Ron Paul of Texas as a legislative assistant. In 1977, he joined the staff of Rep. Jack Kemp of New York as a special assistant and staff economist. While with Kemp, Bartlett helped draft the famous Kemp-Roth tax bill. Between 1979 and 1980, he worked for Sen. Roger Jepsen of Iowa as chief legislative assistant. In 1981, Bartlett joined the staff of the Joint Economic Committee of Congress as deputy director, becoming executive director in 1983. Bartlett is a prolific author, having published over 900 articles in national publications, including The Wall Street Journal, The New York Times, The Los Angeles Times and The Washington Post, as well as many prominent magazines such as Fortune. In 1996, one of his columns inspired Bob Dole's 15 percent tax reduction plan.
Bartlett has also written for important academic journals and published four books, including Reaganomics: Supply-Side Economics in Action, published in 1981.
Far from an authoritative source. LOL
It's fine. When I bring up CATO's anti Iraq and anti Neo-Con articles I expect you to defend CATO's positions on those as much as you defend CATO's economic policies.
waah
I thought you were already doing that. What's your new theory?
We should stop supporting communist states -- I'd rather see our money going to democracies like Japan, Korea, India, Israel than to China
As far as protectionism goes, I believe the government (and no one else can do the job) needs to police the trade policies of our trading partners and respond as per the agreed treaties. The most egregious example today is the continued subsidization of the US currency by various Asian countries. It is in blatant disregard of WTO and any other trade treaty and done for the single reason to de-industrialize this country. Is halting the illegal activity of foreign governments by retaliatory tariffs the hated protectionism in your book?
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