China replaced the United States as a top global destination for foreign direct investment (FDI) in 2003, the United Nations Conference on Trade and Development (UNCTAD) said in its annual investment report Wednesday.
"Setting aside the special case of Luxemburg (owing to transshipping), China became the world's largest FDI recipient," the UNCTAD said in its World Investment Report 2004.
China's strong manufacturing industry helped it attract FDI worth US$53.5 billion, a year-on-year increase of US$800 million, the report said.
The United States, traditionally the largest FDI recipient, experienced a 53-percent plunge in foreign investment last year to US$30 billion, the lowest level in 12 years.
Flows to the Asia-Pacific region as a whole rebounded over the year to US$107 billion from US$94 billion in 2002 thanks to strong economic growth and better investment environment, the report said.
The UNCTAD also conducted surveys during the first quarter of 2004, which have shown that China will be "especially well positioned for an upswing."
The manufacturing sector remained the dominant factor that pulled investment into China.
Services, including finance, tourism, telecommunications and information technology, formed a growing proportion of foreign direct investment stock in the country.