China became the world’s largest recipient of foreign direct investment (FDI) in 2014. According to Chinese state-run newspaper China Daily, it was the first time China has ranked above the United States for FDI.

The United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2015, released on Wednesday, revealed that inflows to China reached US$129 billion last year; a 3.7 percent increase compared to 2013.

Chinese state-run news agency Xinhua reported that while there was an increase in FDI in the services sector – mainly in retailing, transport and finance – FDI inflow to manufacturing fell, “especially in labour-cost sensitive industries”.

According to Xinhua, UNCTAD’s report also showed South Korean investment in China rose by 30 percent, while FDI flows from Japan dropped 39 percent. Investment in China from the U.S. fell 21 percent.

Outbound direct investment from Mainland China increased 15 percent last year to US$116 billion.

Globally, total FDI inflows fell 16 percent to US$1.23 trillion in 2014, the UN’s report revealed.

Overall investment in developed economies recorded a 28 percent drop last year, at US$499 billion. FDI inflows to developing economies rose, and now account for 55 percent of the world’s total FDI inflows, at US$681 billion in 2014, Xinhua reported.