According to Ministry of Commerce statistics, China approved the establishment of 61,207 foreign-funded enterprises in the first 11 months of 2025, marking a 16.9% year-on-year increase. However, actual utilized foreign direct investment (FDI) reached 693.18 billion yuan, reflecting a 7.5% decline compared to the same period last year. Notably, this represents a 2.8 percentage point narrowing of the contraction compared to the January-October period.
While FDI inflows remain negative, the year-on-year decline has significantly moderated from the 27.9% drop recorded during the January-November 2024 period. A particularly strong performance was seen in November 2025, with utilized FDI surging 26.1% year-on-year to 71.25 billion yuan - the highest monthly growth rate since February 2022 and a 45-month peak.
Sectoral analysis reveals manufacturing absorbed 171.72 billion yuan in FDI during the first 11 months of 2025, while the service sector attracted 506.29 billion yuan. High-tech industries accounted for 221.26 billion yuan, with particularly strong growth in e-commerce services (127%), medical equipment manufacturing (46.5%), and aerospace equipment manufacturing (41.9%).
The e-commerce sector has maintained consistently high FDI growth throughout 2025, with year-on-year increases of 100.5% (Q1), 127.1% (H1), and 155.2% (first three quarters). This contrasts with 2024 data where e-commerce wasn't separately listed among high-growth sectors.
Experts attribute the FDI rebound to multiple factors: - The U.S. Federal Reserve's shift from rate hikes to cuts has improved global capital mobility - Hainan Free Trade Port's operational launch has attracted international capital - China's advanced e-commerce ecosystem continues drawing foreign investment
Key source markets showing substantial growth in China investments include Switzerland (67%), UAE (47.6%), and UK (19.3%). This represents diversification from 2024's dominant investors Germany and Singapore. ASEAN countries also demonstrated strong growth at 8.8% in H1 2025.
Long-term trends show a V-shaped recovery in FDI growth since 2023: - 2023: 5.38 million new foreign enterprises (+39.7%), 1.13 trillion yuan utilized FDI (-8%) - 2024: 5.91 million new enterprises (+9.9%), 826.25 billion yuan utilized FDI (-27.1%) - 2025: Multiple months showing double-digit growth after prolonged contraction
Multinational executives emphasize China's strategic importance, with Haleon's Greater China GM stating their commitment to long-term investment, citing improved market access and regulatory predictability. Analysts highlight China's combination of currency appreciation potential and massive consumer market as key attractions for global capital.
Looking ahead, experts anticipate sustained FDI growth as geopolitical tensions ease and China continues optimizing its business environment through high-level opening-up policies.
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