China's overall competitiveness in the world ranks 20th, a slight fall of three places compared with last year, according to a new report released by the leading global business school IMD on Wednesday.

According to the IMD World Competitiveness Yearbook 2009, which ranks a total of 57 economies, China has been performing quite well in a number of areas, notably in domestic economy, international trade, employment, public finance, labor market and scientific infrastructure.

Those areas in which China does not perform very well include international investment, business legislation, management practices, health and environment.

The report also lists a number of challenges that China faces in 2009, including further reforming in the financial sector, coping with the complicated situation of the world economy, creating more employment opportunities for a growing labor force and enhancing the quality and efficiency of public investment in infrastructure.

Of the 57 economies ranked by the IMD, the United States still ranks No. 1. Hong Kong has switched places with Singapore to gain the 2nd place and is swiftly "closing the gap" with the United States.

The most spectacular movements are seen for Indonesia, rising from 51st place to 42nd and Estonia, falling 12 ranks to 35th place.

Some economies suffered important reversals: Colombia (51st), Greece (52nd) and Taiwan (23rd) fell 10 places each, followed by Romania (from 45th to 54th).

Emerging economies such as India, Brazil and Russia rank 30th, 40th and 49th respectively in 2009, in comparison with 29th, 43th and 47th last year.

According to the Swiss-based business school, competitiveness is not just about growth or economic performance but should take into consideration the "soft factors" of competitiveness, such as the environment, quality of life, technology and knowledge.

The IMD World Competitiveness Yearbook is considered as the leading annual report on the competitiveness of world economies and has been published since 1989.

(Xinhua News Agency May 21, 2009)