Foreign Investment Reshapes China's Economic Landscape in H1 2026
China attracted 4,021.4 billion yuan in foreign direct investment during the first half of 2026, as the number of newly established foreign enterprises grew by 5.3% year-on-year — a clear sign that global capital remains committed to the world's second-largest economy.
H1 2026 FDI Highlights
- Total FDI inflow: 4,021.4 billion yuan
- Newly established foreign enterprises: +5.3% YoY
- Nearly 4,800 foreign firms increased their investment in China
- High-tech sector: 33.2% growth, now 42.4% of total FDI
Reinvestment Wave: Nearly 4,800 Firms Double Down
Perhaps most notably, nearly 4,800 existing foreign enterprises chose to expand their China footprint — reinvesting profits and scaling up local operations. This "reinvestment wave" signals deep-rooted confidence in China's long-term growth trajectory, even as geopolitical headwinds persist.
Companies in the electric vehicle supply chain, semiconductor equipment, and green energy sectors have been particularly active in expanding capacity on Chinese soil.
Structural Shift Toward High-Tech
The composition of FDI has undergone a profound shift: high-tech industries now account for 42.4% of total inflows — up from around 30% just three years ago. This reflects both China's industrial policy push and multinationals' strategic prioritization of China-based R&D and advanced manufacturing.
The data underlines that despite rhetoric about decoupling, the world's largest multinationals continue to view China as an indispensable part of their global value chains.