Foreign direct investment into China fell 5.3% year over year in the first eight months of 2026 to 479.95 billion yuan, according to data released by the Ministry of Commerce on Friday.

The pace of drop was softer than the 6.2% contraction in the first seven months of the year. Trading Economics had predicted a 5.8% drop.

During the period, 42,582 new foreign-invested companies were established in China, up 0.3% from a year earlier.

By industry, FDI in the manufacturing sector hit 119.55 billion yuan, while the services sector attracted 350.42 billion yuan.