Foreign direct investment (FDI) into China dropped 10.4% year-over-year in the first nine months of 2025, totalling CNY 573.75 billion (USD 80.89 billion), according to official data released Monday. The decline reflects the impact of global economic uncertainty and a cautious approach from multinational investors amid slowing global trade and geopolitical tensions.
Despite the headline decline, the data revealed sectoral resilience and bright spots within key high-tech and emerging industries. The manufacturing sector attracted CNY 150.09 billion, while the services industry continued to dominate, drawing CNY 410.93 billion in foreign capital.
High-tech industries remained a crucial magnet for overseas investors, securing CNY 170.84 billion — a clear signal of China’s continued appeal in innovation-driven fields. Within this category, e-commerce services surged 155.2%, aerospace and equipment manufacturing rose 38.7%, and medical equipment and device manufacturing increased 17.0%, showcasing strong momentum in technologically advanced segments.
Regionally, Japan led the investment rebound, with capital inflows up 55.5%, followed by the United Arab Emirates (UAE) with a 48.7% increase. The United Kingdom and Switzerland also recorded gains of 21.1% and 19.7%, respectively indicating growing confidence among select advanced economies despite broader caution.
Interestingly, while overall FDI declined on a year-to-date basis, September alone recorded an 11.2% increase from the same month last year, hinting at a possible stabilization or early recovery trend in foreign investment flows into China. Economists note that China’s ability to attract sustained investment in advanced manufacturing and digital industries will be key to reversing the broader slowdown, especially as global investors weigh risks tied to regulatory policy, supply chain diversification, and the evolving geopolitical landscape.
