January brought a surge in foreign business enthusiasm for China, with 5,306 new enterprises established—a 25.5% increase over last year—according to Ministry of Commerce figures. Yet, the real story lies in the 5.7% drop in utilized FDI to 92.01 billion yuan, signaling selective capital deployment.
Breaking it down, services commanded 64.04 billion yuan, manufacturing 26.09 billion yuan. High-tech sectors bucked the trend, drawing 33.75 billion yuan (0.6% growth) and 36.7% of the total—a 2.3% share increase.
Germany’s FDI skyrocketed 86.6%, with Switzerland up 57.4% and Singapore 10.9%. This points to trust in China’s R&D capabilities and supply chain resilience.
In the broader context, these numbers reflect China’s evolution from quantity to quality in attracting FDI. As global supply chains realign, Beijing’s tech incentives are proving effective. The coming quarters will test whether this high-tech momentum can lift overall inflows amid economic recovery efforts.