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%).

Foreign direct investment (FDI) inflows into China declined 5.7% year-over-year to CNY 161.45 billion in January-February 2026. The manufacturing sector secured CNY 47.52 billion, while services accounted for CNY 111.22 billion of the total. A bright spot was high-tech industries, which saw FDI surge 20.4% to CNY 63.21 billion, representing 39.2% of total inflows. Standout performers included R&D and design services (+171.8%), computer and office equipment manufacturing (+84.1%), and electronic and communication equipment manufacturing (+35.5%). Among source countries, investment from Canada (+210%), Switzerland (+41.3%), and France (+3%) saw significant increases, including flows through free ports.

Foreign direct investment (FDI) into China fell 5.7% year-on-year to CNY 92.01 billion in January 2026, following a 9.5% decline in December. Despite the drop, the number of newly established foreign-invested enterprises rose 25.5% to 5,306. By sector, manufacturing attracted CNY 26.09 billion in FDI, while the services sector accounted for CNY 64.04 billion. Investment in high-tech industries reached CNY 33.75 billion, up 0.6% from a year earlier, representing 36.7% of total inflows, 2.3 percentage points higher than the same period last year. Within high-tech segments, investment in R&D and design services surged 175.1%, followed by computer and office equipment manufacturing (+82.4%) and electronic and communication equipment manufacturing (+3.7%). By source, investment from Germany, Switzerland, and Singapore increased by 86.6%, 57.4%, and 10.9%, respectively, including flows through free ports.