Chinese companies invested 28.04 billion U.S. dollars into firms in the United States in 2023, when measured on a historical-cost basis. The total foreign direct investments in the U.S. were valued at approximately 5.39 trillion U.S. dollars in that year. Sino-American relations FDI flows are even higher from the United States into China than the flows in this statistic. In addition to FDI, the countries are linked by billions of U.S. dollars in trade value, much of which includes integrated supply chains which see intermediate products shipped back and forth before a final product goes to consumers. This close economic relationship does not imply a political partnership, however. In fact, the countries engaged in what most analysts consider a trade war starting in 2018. China’s other options China is expanding its Belt and Road Initiative, producing infrastructure investments abroad in different parts of Asia. However, these outflows do not yet reach the values seen in this statistic, partly due to the smaller size of the target economies. Still, the majority of net overseas direct investment from China goes to Asia. This measure is slightly different because it does not give the total volume of investments, but it underscores the importance of regional ties to Chinese investors.

According to preliminary figures, the value of foreign direct investment (FDI) inflows to China reached approximately 116.2 billion U.S. dollars in 2024. This was a decrease of around 28.8 percent compared to the previous year. FDI development in China China was the second largest recipient of FDI inflows worldwide in 2023 and has been an attractive destination for foreign investment since it opened-up four decades ago. Annual FDI inflows increased rapidly from around 40 billion U.S. dollars in 2000 to 124 billion in 2011, but growth rates have dropped thereafter. This was mainly due to high market restrictions and growing competition from domestic companies. In order to improve the investment environment, the Chinese government issued a new Foreign Investment Law in 2019 and took further measures to safeguard the interests of foreign investors. These measures were at least partly responsible for increased FDI inflows in 2020 and 2021. However, geopolitical tensions and questions over China’s intentions to further open-up its economy render future developments in this area highly uncertain. Investor origins and preferred industries According to UNCTAD estimates, around 10.4 percent of investment stock in 2020 originated from the United States, followed by Japan, the United Kingdom, and Germany. However, the picture is blurred by the fact that a large portion of these investments entered China through international financial hubs such as Hong Kong, which officially accounted for 53 percent of the Chinese FDI stock in 2020. In terms of invested sectors, FDI distribution has changed a lot over the last 20 years. While manufacturing received around 60 percent of annual investments in 2005, that share has dropped to around 22 percent in 2020. Today, more than 70 percent of the investment value is directed into the service sector.

Foreign Direct Investment in China increased by 98 USD Hundred Million in February of 2025. This dataset provides the latest reported value for - China Foreign Direct Investment - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Key information about China Foreign Direct Investment

• China Foreign Direct Investment (FDI) fell by 8.3 USD bn in Sep 2024, compared with a drop of 14.9 USD bn in the previous quarter.
• China Foreign Direct Investment: USD mn net flows data is updated quarterly, available from Mar 1998 to Sep 2024.
• The data reached an all-time high of 107.2 USD bn in Mar 2022 and a record low of -14.9 USD bn in Jun 2024.

• In the latest reports of China, Current Account recorded a surplus of 147.6 USD bn in Sep 2024.
• China Direct Investment Abroad expanded by 34.5 USD bn in Sep 2024.
• Its Foreign Portfolio Investment increased by 24.0 USD bn in Sep 2024.
• The country's Nominal GDP was reported at 4,166.8 USD bn in Mar 2023.

According to preliminary figures, cumulative foreign direct investment (FDI) inflows to China in January 2025 amounted to approximately 97.59 billion yuan. This was 13.4 percent less than in the same period of the previous year. According to revised annual figures, total FDI flows to China reached around 189.1 billion U.S. dollars in 2023.

This statistic shows the direct investment position of the United States in China from 2000 to 2023, on a historical-cost basis. In 2023, the U.S. investments made in China were valued at 126.91 billion U.S. dollars. Direct investment position of the United States - additional information Foreign direct investment (FDI), simply put, is an investment of one company into another company located in a different country. It differs from a traditional way of investing into shares of foreign companies listed on a stock exchange. The companies which make foreign direct investment usually own a part of the company in which they invest and they have influence on the decision making process. In the United States, FDI is defined as an American investor (called the U.S. parent) owning a minimum of 10 percent of a foreign firm (known as a foreign affiliate). The total direct position of the United States abroad amounted to 6.68 trillion U.S. dollars in 2023. Although the phenomenon profits greatly from the technological advances of the 21st century, as well as from the cultural flexibility of today’s workforce, FDI has a long history, going back to the colonial empires. Not without critics, FDI is generally believed to bring advantages to the investing company, such as access to new markets and decreased costs of labor, materials and production facilities. The local economy can benefit from an infusion of capital, access to new technologies and engagement of native labor pool. There are three recognized types of foreign direct investment, namely horizontal FDI, platform FDI and vertical FDI, along with various methods of implementing the investment itself. FDI considered by many one of the motors of worldwide economic growth. U.S. foreign investment abroad has seen a dramatic growth in the past decades. Multinational American corporations, especially focused on manufacturing, have largely invested in facilities overseas, due to financial benefits. However, a large share of these corporations focuses toward not only supplying the U.S. market, but also the local markets in which they operate. In 2020, the country that received the largest amount of U.S. foreign investment was the United Kingdom, with a little over one trillion U.S. dollars, followed by the Netherlands, and Luxembourg. Overall, the total amount of U.S. dollars invested in European states in 2021 reached 3.98 trillion U.S. dollars compared to 2.25 trillion U.S. dollars a decade prior.

According to data published in China's balance of international payments (BOP), quarterly foreign direct investment (FDI) inflows to China amounted to around 17.5 billion U.S. dollars in the fourth quarter of 2024. In the third quarter of 2023, inward FDI flows became negative for the first time since the start of the published timeline in 1998, with foreign investors pulling out more money out of the country than they invested.

During 2022, the foreign direct investment (FDI) from China in Mexico amounted to approximately 569.7 million U.S. dollars, the highest FDI from China in the North American country during the given period.

As of 2020, Chinese FDI flow to Africa amounted to 4.2 billion U.S. dollars. In the same period, Foreign Direct Investment from the United States totaled 2.1 billion U.S. dollars. This trend - higher Chinese than American FDI flows to Africa - has been observed since 2013, when China overtook the U.S. regarding investment flows to the continent.

This statistic shows the value of foreign investment in actual use in Beijing in 2023 and 2024, by major sector. In 2024, the value of foreign investment that was used in Beijing in information transmission, computer services and software amounted to approximately 381.5 million U.S. dollars.

According to preliminary data, the value of outward foreign direct investment (FDI) from China amounted to approximately 177.29 billion U.S. dollars in 2023. That year, Chinese outward FDI flows ranked third in the world, while global FDI outflows declined by two percent. Development of Chinese FDI flows The sharp decline in FDI outflows since 2016 was mainly the result of stricter regulation measures taken by the Chinese government to control capital flows. Growing security concerns in foreign countries also had a dampening effect on FDI flows from China. These developments had a large influence on the investments of Chinese state-owned enterprises, which dropped to only about ten percent of the total Chinese FDI inflows for the United States and European Union, down from much higher levels in the past. Despite the sharp decline in FDI flows, the capital stock of Chinese FDI abroad grew decisively in recent years and reached nearly three trillion U.S. dollars in 2023. Regional and sectoral distribution of FDI from China Major recipients of Chinese FDI are Hong Kong, British Virgin Islands, and Cayman Islands. Hong Kong absorbs by far the largest amount of FDI from China and plays a special role given its combined status as international financial hub and Chinese special administrative area, distributing most of China's invested capital to regions all over the world. A sectoral breakdown of Chinese FDI flows reveals that investments in leasing and business services, wholesale and retail, manufacturing, and financial services were most favored by Chinese investors.

In 2024, the United States had a foreign direct investment (FDI) confidence index score of 2.3, the highest in the world. Of the 25 highest ranked countries, six were so-called emerging economies. Of the emerging economies, China had the third highest ranking overall, with a score of 2.21. The FDI confidence index ranks the likelihood of companies making a FDI in a given country.

In 2024, foreign direct investment (FDI) pledges from China to South Korea amounted to approximately 5.8 billion U.S. dollars. However, the actual investments were significantly lower at about 513 million dollars.

This statistic shows the cash flow of Chinese foreign direct investments (FDI) to Latin America from 2013 to 2023. In 2023, around 13.48 billion U.S. dollars were directed from China to Latin America, a decrease from around 16.35 billion U.S. dollars in the year prior.

In 2024, the value of approved foreign direct investments (FDI) from Taiwan into mainland China reached approximately 3.65 billion U.S. dollars. The amount of approved FDI into China has gradually decreased over the last decade.

This statistic shows the foreign direct investment (FI) in actual use in Beijing from 2013 to 2023. In 2023, the FDI value that was actually used amounted to around 13.71 billion U.S. dollars, a decrease by around 21.2 percent from the previous year.

In 2024, the number of newly established enterprises receiving foreign direct investments (FDI) in China ranged at approximately 59,080. From 2010 to 2016, the number of annual registrations of foreign invested companies was relatively stable, varying between 23,000 and 28,000. After peaking in 2018 at around 60,500 registrations, the number of newly registered companies declined again in the following years. According to preliminary figures, the FDI actually used in China in 2024 decreased by 28.8 percent compared to the previous year to 116.2 billion U.S. dollars.

In 2023, the actually used value of foreign direct investment (FDI) in Shanghai municipality in China amounted to approximately 24.09 billion U.S. dollars. The actually used FDI value increased by 0.5 percent compared to the previous year.

In 2024, foreign direct investment (FDI) pledges from Japan totaled approximately 6.12 billion U.S. dollars, making it the leading country in FDI pledges, followed by China and the United States. However, the actual investments were significantly lower, with Singapore investing the highest amount at around two billion dollars.

In 2024, the value of approved foreign direct investments (FDI) into Taiwan reached approximately 7.86 billion U.S. dollars (not including investment from mainland China). The finance and insurance sector attracted around 5.36 billion U.S. dollars.