On 15 November 2024, China’s Ministry of Commerce (“MOFCOM”) released national foreign direct investment (“FDI”) statistics from January to October 2024. According to the statistics, from January to October 2024, China attracted RMB 693.21 billion (equivalent to US$ 95.73 billion) in FDI, far lower than last year. The overall performance lacks highlights.
According to the statistics, from January to October 2024, China established 46,893 new foreign-invested enterprises, with a realized FDI value of RMB 693.21 billion (equivalent to US$ 95.732 billion). The realized FDI refers to the actual amount of contractual foreign investment paid. Among them, the realized FDI in manufacturing is RMB 192.32 billion (equivalent to US$ 26.559 billion), in the service industry is RMB 484.16 billion (equivalent to US$ 66.862 billion), and in high-tech manufacturing is RMB 80.18 billion (equivalent to US$ 11.073 billion). The largest growth in realized FDI industries are medical equipment and instrument manufacturing, computer and office equipment manufacturing, and professional technical services. Meanwhile, Germany, Australia, and Singapore are the countries with the largest growth in realized FDI, up 7.5%, 6%, and 4.4%, respectively.
Compared with January-September 2024, the performance in October 2024 is not optimistic. In October, the statistics on newly established foreign-invested enterprises, realized FDI, realized FDI in manufacturing, in services, and high-tech manufacturing are 4,785, RMB 52.61 billion (equivalent to US$ 7.265 billion), RMB 13.08 billion (equivalent to US$1.80 6 billion), RMB 38.03 billion (equivalent to US$ 5.252 billion), and RMB 3.06 billion (equivalent to US$ 423 million). None of them are listed in the top five, especially the realized FDI in manufacturing and in high-tech manufacturing, which ranked second from the bottom. As of the statistics announcement date, the month with the most newly established foreign-invested enterprises this year is August, with 5,314 companies. The month with the most realized FDI and that in manufacturing was January, with RMB 112.71 billion (equivalent to US$ 15.565 billion) and RMB 33.11 billion (equivalent to US$ 4.572 billion), respectively. The month with the most realized FDI in high-tech manufacturing was June, with RMB 13.34 billion (equivalent to US$ 1.842 billion). Germany and Singapore are the main sources of FDI in China because their investment in China has increased almost every month. Meanwhile, the FDI from Australia increased in January, February, and October.
Compared with the same period in 2023, the statistics from January to October 2024 are not impressive. MOFCOM did not release the statistics from January to October 2023. The data from January to September 2023, such as the absorption of FDI of RMB 919.97 billion (equivalent to US$127.048 billion), the realized FDI of RMB 919.97 billion (equivalent to US$127.048 billion), and the realized FDI in manufacturing of RMB 262.41 billion (equivalent to US$36.239 billion), are all much higher than the data from January to October 2024. Although the number of newly established foreign-invested enterprises in January-September 2023 is 37,814, lower than 42,108 in January-September 2024, the regions where foreign investment sources grew were more diverse, including France, the United Kingdom, Canada, Switzerland, and the Netherlands.
In conclusion, the FDI statistics from January to October 2024 are much lower than the same period in 2023; and the data in October 2024 is also lower than the average data for each month in 2024. This reflects that foreign investors’ willingness to invest in China is still conservative, and perhaps external incentives are needed to promote it.
According to the statistics, from January to October 2024, China established 46,893 new foreign-invested enterprises, with a realized FDI value of RMB 693.21 billion (equivalent to US$ 95.732 billion). The realized FDI refers to the actual amount of contractual foreign investment paid. Among them, the realized FDI in manufacturing is RMB 192.32 billion (equivalent to US$ 26.559 billion), in the service industry is RMB 484.16 billion (equivalent to US$ 66.862 billion), and in high-tech manufacturing is RMB 80.18 billion (equivalent to US$ 11.073 billion). The largest growth in realized FDI industries are medical equipment and instrument manufacturing, computer and office equipment manufacturing, and professional technical services. Meanwhile, Germany, Australia, and Singapore are the countries with the largest growth in realized FDI, up 7.5%, 6%, and 4.4%, respectively.
Compared with January-September 2024, the performance in October 2024 is not optimistic. In October, the statistics on newly established foreign-invested enterprises, realized FDI, realized FDI in manufacturing, in services, and high-tech manufacturing are 4,785, RMB 52.61 billion (equivalent to US$ 7.265 billion), RMB 13.08 billion (equivalent to US$1.80 6 billion), RMB 38.03 billion (equivalent to US$ 5.252 billion), and RMB 3.06 billion (equivalent to US$ 423 million). None of them are listed in the top five, especially the realized FDI in manufacturing and in high-tech manufacturing, which ranked second from the bottom. As of the statistics announcement date, the month with the most newly established foreign-invested enterprises this year is August, with 5,314 companies. The month with the most realized FDI and that in manufacturing was January, with RMB 112.71 billion (equivalent to US$ 15.565 billion) and RMB 33.11 billion (equivalent to US$ 4.572 billion), respectively. The month with the most realized FDI in high-tech manufacturing was June, with RMB 13.34 billion (equivalent to US$ 1.842 billion). Germany and Singapore are the main sources of FDI in China because their investment in China has increased almost every month. Meanwhile, the FDI from Australia increased in January, February, and October.
Compared with the same period in 2023, the statistics from January to October 2024 are not impressive. MOFCOM did not release the statistics from January to October 2023. The data from January to September 2023, such as the absorption of FDI of RMB 919.97 billion (equivalent to US$127.048 billion), the realized FDI of RMB 919.97 billion (equivalent to US$127.048 billion), and the realized FDI in manufacturing of RMB 262.41 billion (equivalent to US$36.239 billion), are all much higher than the data from January to October 2024. Although the number of newly established foreign-invested enterprises in January-September 2023 is 37,814, lower than 42,108 in January-September 2024, the regions where foreign investment sources grew were more diverse, including France, the United Kingdom, Canada, Switzerland, and the Netherlands.
In conclusion, the FDI statistics from January to October 2024 are much lower than the same period in 2023; and the data in October 2024 is also lower than the average data for each month in 2024. This reflects that foreign investors’ willingness to invest in China is still conservative, and perhaps external incentives are needed to promote it.