United States: Foreign Investment

The US is the world’s largest recipient of foreign direct investment (FDI). The US government policies on taxation and regulation offer foreign investors wide freedom. Nevertheless investments controlled by foreign governments may be subject to restrictions.
October 17, 2023

According to UNCTAD’s 2022 World Investment Report, FDI flows to the U.S. rebounded strongly by 143.6%, from USD 151 billion in 2020 to USD 367 billion in 2021, mainly due to a surge in cross-border M&As. Reinvested earnings amounted to USD 200 billion in 2021, the highest level ever recorded. They were spread across many services industries, including information and communication, trade, transport and storage, finance and insurance and professional services.

According to data from the U.S. International Trade Administration, FDI accounts for nearly 16% of U.S. business research and development (R&D) and directly supports almost 8 million jobs in the country. The main investing countries in the U.S. are Japan, Germany, Canada, the United Kingdom, Ireland and France. Most of these investments are in manufacturing, financial and insurance activities, and trade and maintenance. In 2021, California received the most investment, followed by Massachusetts and New York.

FDI in Figures

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