Chinese investment

Singapore Is Top Destination For Chinese Investment


China is looking to expand, and it is expanding primarily in Asia. One of those destinations that China is looking into is Singapore. Singapore has even overtaken the U.S. as the top destination for Chinese investment.

Amazon also recently announced their personal further expansion into the Singapore market.

While developed economies are still the top destination for China, developing ones are poised to get significant gains as well. Singapore has now become the top destination for China, followed by the U.S. Hong Kong, Malaysia and Australia are the next on the list.

It is also notable that China is taking part in eCommerce as well. With companies like Alibaba and Tencent, China will continue to be a big player in eCommerce in the future. China is also looking to invest into technology such as electric vehicles and tapping into renewable energy.

The One Belt Initiative

All of these are part of China’s One Belt initiative, which is China’s road map to becoming the top economic player in the years to come. This can be seen in its improvement in investing into countries like Malaysia, Thailand, Iran and Kazakhstan.

Image: Adobe Stock | China Business Partnership
Image: Adobe Stock | China Business Partnership

Developing economies have a large potential for growth, and China is banking on these economies to further strengthen China’s economic power.

China though will face competition from the U.S., especially with tensions that the two nations have faced in recent times. This has caused the U.S. to drop to second place in China’s investment destination as it looks to Singapore as a possible alternative.

The same is true with India, where tensions with Pakistan has led it to drop to seventh place. Pakistan is largely backed by Chinese investment, making India a less favorable investment destination.

While tensions with the U.S. may have made it drop to second place, it is still one of the top destinations for China. It still ranks consistently as an investment destination along with Japan, India and Iran.

Will China’s economic expansion be maintained and make it into an even more dominant economic player? Leave your comments below.

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