The latest data from the Ministry of Commerce (MOFCOM) points to record high levels of inbound foreign investment in China in 2019.
MOFCOM data indicates that China received 941.52 billion yuan in foreign investment in 2019, for a YoY rise of 5.8%. In US dollar terms China received USD$138.14 billion in foreign investment, for a YoY rise of 2.4%.
According to MOFCOM China was the leading destination for foreign investment in 2019 amongst developing countries, and the second biggest destination overall.
2019 saw the establishment of around 41,000 foreign invested enterprises in China, with the total number of foreign invested enterprises in China breaching the one million threshold to reach 1,001,377 in total.
China is host to 84,000 enterprises that engage in import-export activities, accounting for 16.8% of China’s foreign trade enterprises. Their import-export volume was 12.6 trillion yuan last year, accounting for a 39.9% share of the national total.
Foreign investment in China’s services industry was robust in 2019, rising 12.5% to reach 681.77 billion yuan. Foreign investment in information communications, software and information technology services rose by 29.4%, while for the leasing and commercial services sector the increase was 20.6%.
Manufacturing saw especially strong increases, with foreign investment in pharmaceuticals manufacturing, electrical machinery and equipment manufacturing and instrumentation manufacturing rising 61.%, 41.2% and 48.2% respectively.
Major overseas manufacturers stepped up investment in China in 2019, with the average real investment levels for Samsung, SK Hynix, Corning Display, Caterpillar, Ineos, Panasonic and ExxonMobil all exceeding $100 million in 2019.
Tech sector investment increase 25.6%, while tea services investment increased 44.3%. China saw the execution of over 123 foreign investment contracts for projects worth over $100 million, for a YoY rise of 78.3%.