China’s foreign direct investment (FDI) inflows experienced a slight recovery in March, reversing a decline observed in the first quarter of the year, the Ministry of Commerce stated.
FDI in the Chinese mainland surged by 13.2 per cent year-on-year in March, signaling a rebound from earlier in the year. However, the overall FDI for the first three months of 2025 showed a decline of 10.8 per cent compared to the same period in 2024, with total inflows reaching 269.2 billion yuan (approximately 37.35 billion USD), Caliber.Az reports via Chinese media.
Despite the overall dip, the number of new foreign-invested enterprises established in China during the January-March period rose by 4.3 per cent, reaching 12,603 new ventures. This indicates a continued interest in the Chinese market, particularly in sectors such as manufacturing and services.
The data also reveals a clear trend towards investments in high-tech industries. The actual use of FDI in high-tech sectors reached 78.61 billion yuan during the first quarter, with notable growth in areas such as e-commerce services (up 100.5%), bio-pharmaceutical manufacturing (up 63.8%), aerospace equipment manufacturing (up 42.5%), and medical instrument manufacturing (up 12.4%).
FDI in China’s manufacturing sector amounted to 71.51 billion yuan, while services industries saw a more substantial figure at 193.33 billion yuan for the quarter. The figures underline China’s ongoing appeal as a key destination for foreign investment, particularly in advanced industries.
The report also highlighted significant increases in investments from specific regions. FDI from ASEAN countries jumped by 56.2 per cent, while investments from the European Union grew by 11.7 per cent. Notably, investments from Switzerland, the United Kingdom, Japan, and the Republic of Korea saw robust increases, with respective growth rates of 76.8 per cent, 60.5 per cent, 29.1 per cent, and 12.9 per cent.
While the overall FDI inflow for the first quarter showed a decrease, the March performance suggests a potential recovery in the coming months as global investors continue to look toward China’s evolving economic landscape.
By Vafa Guliyeva
Source: caliber.az
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