China Foreign Direct Investment

Foreign direct investment (FDI) into China declined by 10% year-on-year to CNY 1.04 trillion or $145.51 billion in the first eleven months of 2023, in a sign foreign investors have not fully returned to the country after Covid while sentiment about the Chinese recovery remains weak. New actually utilized foreign capital decreased in manufacturing (-2.1%) and services (-15.9%). In contrast, it rose in high-tech manufacturing (1.8%), namely medical equipment and instruments (27.6%) and electronics and communication equipment (5.5%); construction (32.8%), R&D and design (9.1%). Investment in high-tech industries accounted for 37.2% of total investment. FDI increased from the UK (93.9%), France (93.2%), the Netherlands (34.1%), Switzerland (23.3%) and Australia (14.3%).