Singapore takes number 1 spot for most attractive destination for overseas investments from China
Singapore has placed first, over the United States, as the top destination for overseas investments from China in this year’s China Going Global Investment Index 2017 by The Economist Intelligence Unit.
The report stated that Singapore’s access to South-East Asian markets and close links with China were integral to its top ranking. Singapore provides an investment environment that offers opportunities as well as low levels of risk.
The United States fell to second, while Hong Kong, Malaysia and Australia came in third, fourth and fifth, respectively.
The higher trade tensions between China and the United States due to rejection of several Chinese investments by the government’s Committee on Foreign Investment in the United States contributed to its drop in ranking, the report concluded.
The United Kingdom slipped the most, by 29 places to 41st, following its decision to leave the EU and the uncertainty of future economic growth.
E-commerce could be a particular strength for Chinese firms in the global consumer sector in the future. In addition, Chinese companies’ development in technology such as electric vehicles, financial technology and renewable energy are increasingly shaping overseas direct investment efforts.
The index ranks 60 major economies in terms of their attractiveness to Chinese firms. It covers the automotive, consumer goods, energy, financial services and healthcare sectors, drawing on 57 indicators spread across “opportunity” and “risk” pillars.