China’s FDI Equity Stock Ranks Second Globally

Dragon Media News Desk

China’s foreign direct investment (FDI) equity stock reached 26.8 trillion yuan, or about 3.98 trillion U.S. dollars, in 2025, ranking second globally and marking six consecutive years of growth, the Ministry of Commerce said.

Data compiled by the ministry and other government departments showed that 461,000 foreign-invested enterprises filed annual reports last year, up 5.7 percent from 2024.

Ministry spokesperson He Yadong said China’s vast market offered foreign businesses opportunities to generate tangible returns. He said China welcomed foreign companies seeking to expand their presence in the country and share in its development opportunities.

The reporting companies recorded an average profit margin of 8.7 percent in 2025. In manufacturing, their profit margin was 2.2 percentage points higher than that of China’s major industrial enterprises, the data showed.

Foreign-invested enterprises accounted for one-third of China’s total goods trade and one-seventh of its tax revenue in 2025. They also provided an average of more than 30 million jobs annually over the past five years, the ministry said.

High-tech industries have become a major draw for foreign investment in China. FDI in the sector rose 35.1 percent year on year to 200.26 billion yuan in the first eight months of this year, official data showed.

China has stepped up efforts to stabilise foreign investment and direct more capital into advanced, high-value-added sectors. A 15-measure action plan unveiled in June aims to expand market access, streamline investment procedures, strengthen investment promotion and improve services for foreign investors.

A new version of the Catalog of Encouraged Industries for Foreign Investment took effect on February 1. It encourages investment in advanced manufacturing, modern services, high-tech industries, energy conservation and environmental protection, as well as in China’s central, western and northeastern regions.