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China most attractive destination of FDI

(Xinhua)
Updated: 2008-06-05 23:51

China has been ranked the most attractive destination for foreign direct investment (FDI), according to a survey of business leaders released by Ernst & Young Thursday.

The survey of 834 international business decision makers showed that 47 percent of respondents ranked China as the most attractive investment destination, followed by India with 30 percent.

The third-placed Russia scored this year's sharpest climb up the attractiveness ladder, rising 9 points to a 21 percent rating.

"China, India and Russia are on the rise," said Peter English who led the survey. "These countries offer what investors are looking for: large untapped markets and considerable growth potential. The incumbent major industrialized nations like the United States and Germany simply cannot keep up in this respect."

The US appeal for investors, meanwhile, has been damaged by the subprime crisis and the threat of recession this year. While 33 percent of respondents ranked the US as top location for FDI in 2007, the percentage dropped to only 18 percent in 2008.

The survey also showed that 50 percent of respondents described the United States as the most innovative country, followed by China with 34 percent and Germany with 31 percent.