CHICAGO, April 10 (Xinhua) -- The 2024 Kearney Foreign Direct Investment (FDI) Confidence Index report released recently has upgraded China's ranking from seventh to third, just after the United States and Canada.
The report attributes China's notable jump in ranking partially to its loosening of capital controls for foreign investors in September 2023, as well as the positive and cooperative tone of the China-U.S. summit in November.
For the second time in the 26-year history of the FDI Confidence Index, Kearney includes an exclusive emerging market ranking to give business leaders insights into which emerging markets are most appealing to investors now and over the next three years. China ranks first on the 25-market list, followed by the United Arab Emirates, Saudi Arabia, India, Brazil, Mexico, Poland, and Argentina.
Emerging markets performed better in the Kearney 2024 FDI Confidence Index across several metrics relative to last year, with 84 percent of respondents surveyed indicating that they are planning on maintaining or seeking new investments in emerging markets, up 3 percent from last year.
Survey respondents cited technological and innovation capabilities as their primary priority in selecting investment destinations this year. The preference for technologically advanced markets is also reflected in 2024's top three markets on the Index: the United States, Canada, and China.
Notably, research and development capabilities jumped four ranks to be the 6th key priority for investors in 2024, given the rapid advancements in AI that are capturing the interest and capital of investors near and far.
In 2023, investors cited increasing geopolitical tensions and rising commodity prices as the most likely events to occur. For the remainder of 2024, investor concerns regarding geopolitical tensions linger, alongside growing anticipation of more restrictive business regulatory environments in developed and emerging markets alike.
Nonetheless, a vast majority of respondents surveyed expect their companies' levels of FDI to increase over the next three years, with many either already or planning to make use of AI in their investment decision-making.
Since its inception in 1998, the Kearney FDI Confidence Index is an annual survey of global business executives that ranks markets that are likely to attract the most investment in the next three years. ■
