China sees sharp decline in foreign investment

The total volume of FDI during this period was 539.47 billion yuan, approximately $75.3 billion, Caliber.Az reports via foreign media.

The manufacturing sector emerged as a significant recipient of foreign investment, accounting for over a quarter of the total FDI. During the first seven months of 2024, foreign investors allocated 154.5 billion yuan to this sector, highlighting its continued importance despite the overall decline in investment.

Notably, there were increases in investment from specific countries despite the overall downturn. Germany notably raised its FDI in China by 26.4% year-on-year during this period. Similarly, Singapore increased its investments by 11% compared to the previous year. These increases suggest a selective confidence among certain international investors in China's market potential.

In terms of new business registrations, there was a positive development. The number of new enterprises involving foreign capital registered in China grew by 11.4% by the end of July 2024, reaching a total of 31,650. This growth indicates ongoing interest in entering the Chinese market, even amidst the broader decline in FDI.

Overall, while China has seen a significant reduction in foreign direct investment, specific sectors and countries continue to show strong engagement, and the establishment of new foreign-invested enterprises reflects a degree of sustained international interest in the Chinese economy.