China 2025 Foreign Investment: Highlights

1. Investment Scale:
China’s use of foreign capital decreased by 15.2% year-on-year in the first half of 2025, totalling CNY 423.23 billion. However, 30,014 new foreign-invested enterprises were established—an 11.7% increase—showing ongoing market confidence.

2. Industry Breakdown:
High-tech industries attracted CNY 127.87 billion (about 30% of total), with e-commerce services up 127.1%, chemical pharmaceuticals up 53%, and aerospace equipment manufacturing up 36.2%. Manufacturing received CNY 109.06 billion (25.8%), and services accounted for CNY 305.87 billion (72.3%).

3. Country & Region Trends:
Investment from Japan (+59.1%), Switzerland (+68.6%), the UK (+37.6%), Germany (+6.3%), ASEAN (+8.8%), and South Korea (+2.7%) saw significant gains.

4. Policy & Long-Term Developments:
China eliminated all manufacturing restrictions on foreign investment and simplified procedures for profit reinvestment registration. By the end of 2024, China had over 1.239 million foreign-invested firms and CNY 20.6 trillion in actual foreign capital utilized. The 14th Five-Year Plan added 229,000 new foreign-invested companies—a rise of 25,000 from the previous period.

5. Enterprise Examples:
Projects by Lexus, Vandevelde, Airbus, and Phoenix Contact demonstrate rapid growth and confidence in China's market.

Summary:
Despite a decline in overall investment volume, high-tech sectors and flows from developed countries remain robust. Institutional reforms and favourable policies continue to attract global investors, positioning China as a forward-looking market.