Foreign Direct Investment Moderates
China attracted 327.29 billion yuan in actual foreign direct investment (FDI) in the first five months of 2026, down 8.6% year-on-year, according to the Ministry of Commerce. However, the number of newly established foreign-invested enterprises rose 5.3% to 25,297, signaling continued business interest.
Global FDI Context
According to UNCTAD's World Investment Report 2026 released July 7, global FDI rebounded 6% to $1.6 trillion in 2025 after two consecutive years of decline. The recovery was highly concentrated, driven largely by mega-projects in AI-related digital infrastructure.
China's Position
- Regulatory reforms: New FDI filing requirements effective July 1, 2026 under State Council Order No. 837
- Investment areas: Focus on high-tech manufacturing, green technology, and services
- Policy support: Streamlined registration processes under the Foreign Investment Law
Outlook
Despite the headline decline in utilized FDI, the increase in new enterprises suggests pipeline activity. China continues to position itself as an attractive destination for quality investment, particularly in advanced manufacturing and technology sectors.