Published on: 2026-09-20
Source: People’s Republic of China — Translation
An important disclaimer is at the bottom of this article.
Beijing, September 19 /Xinhua/ — In the first eight months of 2026, China demonstrated steady growth in the volume of actually utilized foreign direct investment (FDI) in its high-tech industries, despite a reduction in the overall volume of investment inflows, official data released on Friday showed.
According to the Ministry of Commerce of the People’s Republic of China, during the reporting period, the volume of actually utilized foreign investment in high-tech industries increased by 35.1 percent year-on-year to 200.26 billion yuan (approximately 29.66 billion US dollars), accounting for 41.7 percent of the total volume of actually utilized foreign investment in the country, showing a year-on-year increase of 12.4 percentage points.
From January to August of this year, a total of 42,582 new enterprises with foreign capital were established in the country, which is 0.3% more than in the same period last year, while the amount of actually utilized FDI amounted to 479.95 billion yuan, decreasing by 5.3% year-on-year.
In the sector breakdown, the manufacturing industry received 119.55 billion yuan in FDI, while the services sector received 350.42 billion yuan.
In particular, the volume of FDI in research and development, services for the commercialization of scientific and technological achievements, as well as in the production of electronic and telecommunications equipment increased by 74%, 64.2%, and 41.9% respectively.
According to Zhang Xiaotao, director of the Center for International Investment Research at the Central University of Finance and Economics, the growing ability to attract foreign investment in high-tech industries reflects a fundamental shift in the factors determining China’s attractiveness to global capital – from a “cost orientation” to an “innovation orientation.”
Zhang Xiaotao explained this growing attractiveness by the presence of highly qualified R&D specialists, a developed industrial infrastructure, and efficient supply chains, as well as China’s efforts to develop emerging industries.
According to the results of the All-China Conference on Advanced Manufacturing Industry, which was held in Beijing from September 16 to 17, China should regard the development of advanced manufacturing as an important strategic task and strive tirelessly to enhance the country’s strength in the manufacturing industry.
Considering next-generation intellectual production as a main direction, it is necessary to pay more attention to the use of digital and intelligent technologies, ensuring an advanced level and autonomy, green and low-carbon development, and cross-sectoral integration, conference participants said.
Moreover, in June of this year, China announced an action plan consisting of 15 measures to stabilize and optimize the use of foreign investment, focusing on expanding market access, simplifying investment procedures, boosting investment promotion, strengthening services and guarantees for foreign investors, and improving foreign capital management.
The new version of the “List of Industries Welcoming Foreign Investments,” which came into effect on February 1 of this year, is aimed at attracting a greater volume of foreign capital into advanced manufacturing, modern services, high-tech industries, energy saving and environmental protection, as well as into the central, western, and northeastern regions of the country.
In the first eight months of 2026, the volumes of actually attracted investments from France, Switzerland, and the Republic of Korea /ROK/ increased by 39.2%, 16.7%, and 16.5% respectively, with these calculations including investments received through free ports.
This year, foreign enterprises in China have frequently invested in the country’s high-tech manufacturing sector. The semiconductor equipment manufacturer STI from the Republic of Korea is building a semiconductor factory in Guangzhou, southern China, with a total investment of about 12.4 billion yuan, while the German automotive parts giant Schaeffler is investing an additional 1 billion yuan in a humanoid robot factory in Jiangsu Province in eastern China.
Professor Chen Jiangwei of the University of International Business and Economics noted that transnational corporations, through their significant investments, confirm the indispensable position of the Chinese market in the global value chain.
“The share of foreign investment in high-tech industries is expected to continue growing, and the concentration of R&D centers and regional headquarters in China will accelerate,” he added.
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