China becomes world's largest FDI recipient amid mixed global outlook

UNCTAD reported that foreign acquisitions have become key for a number of Chinese financial institutions, as indicated by a series of cross-border merger and acquisitions in the US, Belgium, the Netherlands and South Korea between October 2014 and February 2015.

In light of these global trends and despite predictions that global FDI inflows could increase to $1.7 trillion by 2017, UNCTAD Secretary-General Mukhisa Kituyi called for a systematic reform of the international investment agreement regime.

"Old style international investment agreements (IIAs) have increasingly come to a dead end," he said, adding that "the reform should make the global network of international investment agreements better fit the needs and realities of today and tomorrow."

The report indicated that reform efforts should strive to safeguard the right to regulate, reform investment dispute settlement, promote and facilitate investment, ensure responsible investment and enhance systemic consistency of the IIA regime.

UNCTAD called for such reforms to be implemented on the national, bilateral, regional and multilateral levels to better control global investment agreements, which will in turn enhance sustainable and inclusive development.