The Ministry of Commerce (MOFCOM) announced that China’s actual use of foreign direct investment (FDI) totaled CNY402.14 billion in the first half of this year, with the decline narrowing by 10.2 percentage points compared with the same period last year. In June alone, the actual use of FDI increased 15.1% year-on-year, marking the second consecutive month of growth. “Foreign investment in China remains on a stable footing, with recent data pointing to a trend of stabilization and recovery,” Meng Huating, Director of the Foreign Investment Administration (FIA), said. “In a world facing rising protectionism and geopolitical tensions, multinational companies are looking to deepen their investment in China as a hedge against external shocks,” Zhou Mi, Senior Researcher at the Chinese Academy of International Trade and Economic Cooperation said. The World Investment Report 2026, released last month, noted that despite a challenging global investment environment, FDI inflows in China are “showing signs of stabilization” after three years of adjustment. UNCTAD said that China’s inward FDI is moving away from scale-driven expansion toward structural upgrading and quality improvement, with capital increasingly flowing into advanced manufacturing, scientific and technological innovation, and modern services.
FDI in China’s high-tech industries surged 33.2% year-on-year in the first half, lifting its share in total inflows to a record 42.4%. Nearly 4,800 foreign-funded enterprises expanded their investment in China in the first half, the China Daily reports.
