China sees 28.2% YoY decline in FDI in Jan-May 2024

In the first five months of 2024, foreign direct investment (FDI) in the Chinese mainland, in actual use, reached 412.5 billion yuan (approximately $57.94 billion), according to data released by the Ministry of Commerce. This figure represents a 28.2 per cent decrease compared to the same period last year.

Despite the overall decline in FDI, the number of newly established foreign-invested enterprises in China saw a significant rise. A total of 21,764 new foreign-invested firms were set up during this period, marking a 17.4 per cent increase year-on-year (YoY).

The manufacturing sector attracted a substantial portion of the FDI, accounting for 28.4 per cent, or 117.1 billion yuan, of the total inflow. This represents a 2.8 percentage point increase from the same period in the previous year, as per Chinese media reports.

Investment from Germany and Singapore showed notable growth, with FDI from these countries increasing by 24.2 per cent and 16.2 per cent YoY, respectively, the ministry reported.

Fibre2Fashion News Desk (DP)