Oliver Munakash
Mr. Perkins
AP Human Geography, Period 1
March 22, 2021
Chapter 10 Geo and the News Assignment: “China takes new foreign investment top spot from
US”
This article was published by BBC news and is about how China has overtaken the US
for the world’s top destination for new foreign investment. Overseas companies new
investments into America fell by around half while China’s increased about 4% giving them the
number one spot. In 2019, the numbers were much different, the US received bout 251 billion
dollars of foreign direct investment, while China received just 140 billion. These statistics show
that China is joining the United States as one of the major world economies (even though it was
already one). New research shows that China is even supposed to past the United States
economy in 2028. Since 2017, investment in China has risen every year and it has fallen every
year in the US. This can be slightly attributed to the fact that the Trump administration
encouraged American companies to leave China and re-establish operations in the US. China is
the only major world economy that avoided a contraction.
This chapter talks about the KBAT concept of foreign direct investment which means
Investment made by a foreign company in the economy of another country. The US has
consistently led all countries with foreign direct investment until this year with China passing
them. An example of foreign direct investment is the United States trading with other countries
and then manufacturing goods in that traded country where items are cheaper to produce. China
is becoming one of the biggest world economies.
https://www.bbc.com/news/business-55791634