China's Foreign Direct Investment Drops 6% to 438.3 Billion Yuan in First Half of 2026

by Park Sujeong Posted : August 24, 2026, 13:56Updated : August 24, 2026, 13:56

The Chinese Ministry of Commerce announced that foreign direct investment (FDI) in China totaled 438.3 billion yuan (approximately 10.36 trillion yen) from January to July 2026, a decrease of 6.2% compared to the same period last year. This decline is 1.2 percentage points larger than the drop recorded from January to June.


Investment in the manufacturing sector reached 109.4 billion yuan, while the service sector attracted 319.9 billion yuan. Compared to the previous year, manufacturing investment fell by 9.6%, and service sector investment decreased by 4.8%.


In contrast, investment in high-tech industries surged by 32.7% to 182.3 billion yuan, accounting for 41.6% of total FDI, an increase of 12.2 percentage points from the previous year. Notably, research and development (R&D) and design services saw a 72.1% increase, technology transfer services rose by 62.2%, and manufacturing of electronic and telecommunications equipment grew by 39.9%.


Regionally, investments from Saudi Arabia increased by 4.4 times, while France's investment rose by 36.1%, and South Korea's investment grew by 15.8%.


From January to July, the number of newly established foreign-invested enterprises increased by 4.4% to 37,711.





* This article has been translated by AI.