China Attracts $287.69 Billion in Foreign Investment in First Four Months, High-Tech Sector Exceeds 40% Share

Deep News
8 hours ago

Data released by the Ministry of Commerce shows that from January to April 2026, a total of 20,113 new foreign-invested enterprises were established nationwide, representing a year-on-year increase of 6.8%. The actual utilized foreign capital amounted to 287.69 billion yuan. Despite a 10.3% year-on-year decline in utilized foreign capital due to global macroeconomic factors such as a decrease in cross-border direct investment, the quality of investment attraction has improved significantly. Notably, the actual utilized foreign capital in high-tech industries grew by 20.3% year-on-year, with its share rising substantially to 40.4% of the total.

Concurrently, existing foreign capital demonstrates strong confidence in deepening its presence in the Chinese market. In the first four months of 2026 alone, over 3,000 foreign-invested enterprises chose to increase their investments, underscoring the fundamental strength of China's long-term economic growth and the powerful appeal of its vast market.

Foreign investment is increasingly concentrating in high-tech sectors. From January to April 2026, the distribution of foreign investment displayed distinct characteristics: services as the foundation, manufacturing providing stable support, and high-tech industries leading growth, indicating significant progress in industrial structure optimization.

Data reveals that the service sector attracted 204.15 billion yuan in actual utilized foreign capital during the first four months, accounting for 70.9% of the total. It remains the primary destination for foreign capital, with its presence deepening in areas such as commerce, finance, and business services, leveraging China's vast market and well-developed service system.

The manufacturing sector attracted 78.88 billion yuan in actual utilized foreign capital. As a core component of the real economy, while its share has adjusted, manufacturing remains a crucial cornerstone for attracting foreign investment to China. Foreign participation in high-end manufacturing and green manufacturing continues to rise steadily.

The most striking growth driver comes from high-tech industries. From January to April, high-tech industries attracted 116.33 billion yuan in actual utilized foreign capital, a significant year-on-year increase of 20.3%. This represents 40.4% of the national total, a 10.3 percentage point increase compared to the same period in 2025, highlighting a clear trend of foreign capital clustering in high-tech fields.

Performance in specific sub-sectors was particularly notable. Foreign investment in research and design services surged by 108.4% year-on-year, making it the fastest-growing sector and showcasing China's core strengths in technological innovation and R&D services. Foreign capital utilized in computer and office equipment manufacturing, as well as electronic and communication equipment manufacturing, grew by 22.9% and 20.2%, respectively. The continued leadership of high-tech manufacturing is aiding China's industrial chain upgrade towards higher-end and smarter production.

Analysts suggest this structural shift is a direct result of China's ongoing efforts to promote high-level opening-up, optimize the business environment, and strengthen support for technological innovation. As China accelerates the formation of a new development paradigm, high-tech and emerging industries are becoming increasingly attractive to foreign investment. Capital is shifting from traditional processing and manufacturing towards higher value-added areas like R&D, advanced manufacturing, and modern services, which aligns closely with China's industrial upgrade direction.

Over 3,000 foreign-invested enterprises increased their investments. In terms of investment sources, the pattern for the first four months of 2026 was characterized by "Europe leading, the US growing, and diversity stabilizing." Major developed economies showed strong enthusiasm for investing in China, reinforcing the trend of diversified foreign investment sources.

Data indicates that European countries such as Luxembourg, Switzerland, and France saw particularly significant growth in their investments into China, with year-on-year increases of 110.3%, 60.8%, and 58.3%, respectively. Actual utilized US investment in China grew by 24.5% (including data from free ports). The substantial growth from European countries benefits from the deepening China-Europe economic and trade cooperation and strong Chinese market demand in areas like high-end manufacturing, green energy, and financial services. The steady growth in US investment reflects American companies' recognition of China's market potential and the mutually beneficial nature of China-US economic and trade relations.

Compared to short-term fluctuations in investment attraction, the stability and deepening commitment of existing foreign capital better reflect the long-term value of the Chinese market. Over the past three years, the number of existing foreign-invested enterprises in China has increased annually, now exceeding 530,000. The scale of existing foreign capital has surpassed 3.6 trillion US dollars, forming a crucial pillar of China's open economy.

More notably, the vast majority of these existing foreign enterprises have chosen to deepen their roots in China and continuously expand their investments, casting a "vote of confidence" in the Chinese market through concrete actions. In 2025, over 8,000 foreign-invested enterprises increased their investments in China, a year-on-year growth exceeding 10%. From January to April 2026, more than 3,000 foreign-invested enterprises have already added investments, covering sectors like high-end manufacturing, technological innovation, and modern services. This demonstrates the firm confidence of foreign businesses in operating long-term in China and sharing in its development opportunities.

The core reasons for foreign enterprises' continued commitment to China lie in the country's complete industrial and supply chains, its massive domestic demand market, continuously improving business environment, and high-quality talent pool. From tax and fee reductions and simplified market access for foreign investment to ensuring equal participation for foreign-invested enterprises in government procurement and standard-setting, China has been consistently improving its system for promoting and protecting foreign investment. This provides a stable, fair, and transparent environment for foreign businesses to operate, develop, and thrive in China.

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