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Karen Tian

US companies increased their investment in China before the two countries’ leaders met earlier this month, according to new data released by Beijing.
Actually utilised foreign direct investment (FDI) from American firms rose 24.5 per cent year on year in the first four months of the year, the Ministry of Commerce said on Saturday. The figure was reached by including inflows through third regions, such as free trade ports, it added.
Other FDI sources that recorded significant growth were Luxembourg, up 110.3 per cent, Switzerland, up 60.8 per cent, and France, up 58.3 per cent.
No figure was given for the actual amounts invested.
US investment in China is widely believed to have been affected by bilateral trade tensions over the past two years, while Chinese investment in the US has also plunged amid tighter scrutiny on national security grounds.
The overall flow of FDI into China in the first four months of the year declined by 10.3 per cent year on year to 287.7 billion yuan (US$42.4 billion), with a year-on-year fall of 7.3 per cent recorded last month.
“Traditional manufacturing sectors are already close to saturation, while areas linked to advanced productive forces are attracting more foreign capital,” said He Weiwen, a senior fellow at the Centre for China and Globalisation.
He said the strong growth from Luxembourg, Switzerland and France reflected continued confidence in the Chinese market among large European multinationals seeking growth opportunities beyond their home markets.




Executives from 17 major American companies who accompanied United States President Donald Trump on his visit to Beijing this month expressed strong interest in the Chinese market, He said, which could help support future investment flows between the two countries.
A recent survey by the American Chamber of Commerce in China found that almost half of respondents still ranked China among their top three global investment destinations despite concerns over slowing economic growth and US-China tensions.
“The pace of FDI decline should continue to narrow in the second half of this year, and it is possible that some months could return to positive year-on-year growth,” He said. “However, full-year inflows are still likely to come in slightly below last year’s level, although total foreign investment should remain above US$100 billion.”
More foreign investment is flowing into priority sectors highlighted by Beijing.
The services sector remained the largest recipient of foreign investment, attracting 204.2 billion yuan in the first four months of the year, while manufacturing drew 78.9 billion yuan, the commerce ministry said.
Hi-tech industries, a category spanning both manufacturing and services, attracted 116.3 billion yuan in foreign investment, up 20.3 per cent year on year and accounting for 40.4 per cent of total FDI, up 10.3 percentage points from a year earlier.
Among the fastest-growing segments were research and design services, where foreign investment more than doubled from the previous year. Computer and office equipment manufacturing, as well as electronic and telecommunications equipment manufacturing, also posted strong growth.
The number of newly established foreign-invested enterprises rose 6.8 per cent to 20,113.


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Other rapidly growing sources of foreign direct investment included Luxembourg, Switzerland and France, Ministry of Commerce says


Other rapidly growing sources of foreign direct investment included Luxembourg, Switzerland and France, Ministry of Commerce says.


US investment returning? Chinese data shows double-digit growth in early 2026

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Other rapidly growing sources of foreign direct investment included Luxembourg, Switzerland and France, Ministry of Commerce says

Other rapidly growing sources of foreign direct investment included Luxembourg, Switzerland and France, Ministry of Commerce says