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:

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

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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