Foreign Capital Inflows Accelerate in China in First Half of 2021


China has seen a sharp increase in inbound foreign investment since the start of 2021, despite the worsening of trade relations with many parts of the OECD in the wake of the COVID-19 pandemic.

During the period from January to June the volume of actually used foreign capital in China was 607.84 billion yuan, for a YoY rise of 28.7%, according to data from the Ministry of Commerce (MOFCOM). Chinese GDP growth in the first half of 2021 was 12.7%, with the World Bank currently forecasting full year growth of 8.5%.

MOFCOM data further indicates that in the first five months of 2021 China saw the establishment of 18,497 foreign invested enterprises, for a YoY rise of 48.6%.

According to MOFCOM expanded economic opening has made China a “strong magnet” for attracting foreign capital, helping to induce structural optimisation of the Chinese economy.