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China's economic recovery
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How much does China invest abroad? US$174 billion keeps it world’s No 3 FDI source

As China redraws global investment map, mainland firms use leading roles to secure critical supply chains with overseas plans

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People are seen on the terrace of a shopping mall overlooking the central business district in Beijing. China was the world’s third-largest source of foreign direct investment in 2025. Photo: Reuters
Mia Nurmamat

China was the world’s third-largest source of foreign direct investment and the fourth-largest destination last year, holding firm in an annual ranking as it expanded its role in critical raw materials, tech services and the broad energy transition, while the United States remained the global leader in both categories, according to a new report.

Chinese companies invested US$174 billion overseas last year, ranking just behind Japan, and both trailed the US, which saw FDI outflows of US$263 billion, according to findings by the United Nations Conference on Trade and Development (UNCTAD).

The latest rankings represent a departure from 2020, when China ranked second worldwide in both FDI inflows and outflows.

In the UN agency’s report, released on Tuesday, it noted that despite a decline in recorded outflows, China’s overseas investment had become more targeted, “with greater emphasis on greenfield projects, manufacturing, energy, infrastructure and critical raw materials, often in developing economies and along South-South investment corridors” – a designation for investments made between Global South nations.
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