China FDI Falls 15.2% in H1 2025, But High-Tech Draws Foreign Interest
🌏 Key Takeaways
- 🚨 China FDI dropped 15.2% YoY, reaching CNY 423.23B in H1 2025
- 🏭 Manufacturing attracted CNY 109.06B, while services led with CNY 305.87B
- ⚙️ High‑tech industries captured CNY 127.87B of total FDI
- 📈 High‑tech subsectors:
- E‑commerce up 127.1%
- Pharmaceutical manufacturing up 53%
- Aerospace equipment +36.2%
- Medical device manufacturing +17.7%
- 🌍 From ASEAN, FDI rose 8.8%; Switzerland +68.6%, Japan +59.1%, UK +37.6%, Germany +6.3%, South Korea +2.7%
📊 China FDI Overview: Foreign Direct Investment in H1 2025
China’s FDI in the first half of 2025 fell 15.2% year-on-year, totaling CNY 423.23 billion. Investment trends shifted away from broader sectors, even as high-tech industry areas showed notable strength.
🏭 Sector Breakdown: Manufacturing vs. Services
- Manufacturing drew CNY 109.06B, reflecting a slowdown in traditional industrial investment.
- Services led investment flows with CNY 305.87B, underscoring continued interest in consumer and digital service sectors.
- The high share in services indicates a shift toward capital in technology and consumption-related areas.
⚙️ High-Tech Investment: Resilient Despite Overall Slowdown
The high-tech sector remained the bright spot, with CNY 127.87 billion in FDI:
| Industry Subsector | H1 2025 Growth YoY |
|---|---|
| E-commerce services | +127.1% |
| Pharmaceutical manufacturing | +53.0% |
| Aerospace & equipment manufacturing | +36.2% |
| Medical equipment & device manufacturing | +17.7% |
This surge highlights the global interest in China’s innovation-driven industries, even amid broader global uncertainty.
Read More: China’s Consumer Inflation Dips Again!
Regional Investment Highlights
| Source Country/Region | Change in FDI YoY |
|---|---|
| ASEAN | +8.8% |
| Switzerland | +68.6% |
| Japan | +59.1% |
| UK | +37.6% |
| Germany | +6.3% |
| South Korea | +2.7% |
ASEAN countries continue to ramp up investment, while investors from Switzerland, Japan, and the UK showed the most dramatic increases, indicating diversifying inflows from advanced economies into China’s high-value sectors.
What This Signals About China FDI
Although overall FDI declined, the strong performance in high-tech subsectors suggests that foreign capital is strategically targeting China’s innovation economy. Investors appear cautious but remain optimistic about long-term opportunities in e‑commerce, pharmaceuticals, aerospace, and medical tech.
Given the slowdown in broad FDI but strong growth within high-tech areas, do you think China’s strategy of boosting tech investment will pay off?
🔍 Share your insights in the comments, or explore further on China’s evolving investment landscape.
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