China FDI Plunges to Record Low in 2024

2025-01-17 09:51 By Andre Joaquim 1 min. read

Foreign direct investment (FDI) into China plunged by 27.1% in 2024, extending the 8% drop 2023, to record the sharpest decline in foreign direct investment on record with data going back since 2008.

The data reflected the decline in the country’s consumption growth, underscored by the accelerated drop in housing prices, risks of a deflationary spiral, and declining prices for financial assets in the absence of pledges of stimulus support from the government.

Additionally, growing defaults in major companies and opaque balance sheets for manufacturers across the supply chain triggered greater extents of unease for foreign investors.

Finally, the Chinese government’s increased control and regulation over output levels and capital requirements also discouraged investors.



News Stream
China FDI Falls in Q1
Foreign direct investment inflows into China fell by 7.3% year-on-year to CNY 249.6 billion in the first quarter of 2026. Within this total, FDI in the manufacturing sector amounted to CNY 71.46 billion, while high-tech industries attracted CNY 102.73 billion and the services sector received CNY 174.6 billion. Notably, investment in R&D and design services, as well as in the manufacturing of computers and office equipment and electronic and communication equipment, increased by 127.8%, 88.1%, and 23.8%, respectively. In the first quarter of the year, 13,987 new foreign-invested enterprises were established in China, representing an 11% year-on-year increase. By source, investment flows into China rose significantly from Luxembourg (+96.8%), Switzerland (+50.4%), France (+42.3%), and South Korea (+35.2%).
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China FDI Falls 5.7% in January
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