Beijing (TDI): China witnessed a significant rise in new foreign companies over the first eight months of 2024, with 36,968 new companies established—an increase of 11.5% compared to the same period last year, according to the Ministry of Commerce.
However, the total foreign direct investment (FDI) into the Chinese mainland experienced a significant drop.
The actual FDI inflow amounted to 580.2 billion yuan (approximately $81.7 billion), marking a decline of 31.5% year-on-year.
China Foreign Direct Investment
Despite the overall decrease in FDI, the hi-tech manufacturing sector witnessed increased interest, capturing 12.4% of the total FDI inflow, or 72.1 billion yuan.
This represents a 1.9 percentage point increase from the previous year.
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The surge in FDI in specific industries is especially notable as medical equipment manufacturing and instrument and meter manufacturing experienced a dramatic increase of 77.8%, while investment in computer and office device manufacturing grew by 33.9%.
In terms of FDI sources, Singapore and Germany stood out with increases of 11.6% and 5.4%, respectively.
This data reflects a nuanced foreign investment environment in China, where new firm establishment is on the rise even as the overall FDI figures decline.
