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UNCTAD official Zhan Xiaoning: China’s absorption of foreign investment has grown against the trend

UNCTAD official Zhan Xiaoning: China’s absorption of foreign investment has grown against the trend
Xinhua News Agency, Davos, Switzerland, January 22nd. An exclusive interview: China absorbs the adverse growth of foreign exchange-Interview with UNCTAD official Zhan Xiaoning Reporter Ling Xin United Nations Trade and Development (UNCTAD) Director of Investment and Enterprise DivisionIn an interview with a Xinhua News Agency reporter, Davos, Switzerland, said that in 2018, global foreign direct investment (FDI) continued to grow and reached new lows for many years, but China’s level of excessive absorption has steadily climbed.  The latest “Global Investment Trends Monitoring Report” 杭州夜网 released by UNCTAD recently showed that global FDI has increased from 1 in 2017.47 trillion dollars fell to 1 in 2018.US $ 2 trillion, which has continued to fall to the lowest level since the global financial crisis fell to the international financial crisis in the past three years.  Compared with the sharp decline in global FDI, the scale of China’s FDI attraction in 2018 still maintained a growth trend, with an increase of 3% to approximately 142 billion US dollars.China continues to be the most attractive developing economy and the second-largest foreign direct investment inflow country in the world.  Zhan Xiaoning said that China’s implementation of the policy of expanding opening up, especially in the field of service trade, and increasing investment in emerging industries, are prerequisites for its excessive absorption to remain at a high level.  ”China’s foreign exchange inflow has always maintained a stable and gradual growth trend, and each increase has led to a new level of China’s foreign investment attraction.”Zhan Xiaoning said.  The report shows that the global decline in FDI in 2018 was mainly concentrated on growth, and its FDI inflow fell by 40%, replacing about US $ 451 billion.In doing so, Zhan Xiaoning explained that after the U.S. implemented tax reform, its multinational corporations repatriated a large amount of accumulated overseas earnings back to the United States, resulting in unprecedented reductions in FDI inflows into European countries such as Ireland and Switzerland that once provided financial centers for U.S. multinational corporations.  Zhan Xiaoning said that before 2018, in order to avoid tax, American multinational corporations tried to keep investment income overseas, so most of the US foreign investment was based on income reinvestment.The new US tax reform bill, which came into effect in January 2018, reduced the tax burden on the repatriation of multinational corporations ‘income to the United States, resulting in the retention of overseas earnings of these companies back to the United States, which led to a decline in global FDI flows, especially in Europe.  Zhan Xiaoning said that he maintains optimistic expectations on China’s foreign exchange inflow in 2019.  Zhan Xiaoning expert, China’s macroeconomic indicators and its economic competitiveness will be the fundamental factors determining foreign exchange inflows.However, he also reminded that due to the impact of trade frictions and rising prices of factors such as labor and land, the transfer of labor-intensive and export-oriented industries to the country still deserves attention.