China's foreign direct investment (FDI) fell by 19.9% in the first two months of the year to 215.1 billion yuan ($29.88 billion), the Ministry of Commerce reports. This decline is part of a broader trend influenced by economic challenges, including a sluggish property sector and weak domestic demand. However, the high-tech industry has shown notable resilience, attracting significant investment and indicating areas of growth amidst the downturn.
The high-tech sector secured 33.2% of the total FDI, amounting to RMB 71.44 billion. Within this sector, high-tech manufacturing stood out with a 10.1% year-on-year increase in investment, reaching RMB 28.27 billion. The construction, wholesale, and retail industries also saw positive trends, with foreign investment up by 43.6% and 14.5% respectively, suggesting pockets of dynamism within the broader economic landscape.
Despite the overall decline in FDI, the Ministry highlighted that current investment levels remain substantial. "The current FDI figure, despite the decline, ranks as the third highest in the past decade," the Ministry stated, pointing to a sustained interest in China's market potential.
The number of new foreign-funded enterprises in China also increased, with 7,160 establishments in the first two months, up 34.9% from the previous year.
