Net inbound foreign direct investment in China, measured on a balance-of-payments basis, fell to its lowest level in roughly three decades, marking a sustained shift in cross-border capital allocation.
The decline reflected a combination of geopolitical de-risking by multinationals, repatriated earnings amid wider US-China interest-rate spreads, and competition from alternative manufacturing hubs in South-East Asia and India.
Officials have emphasised continued opening of selected sectors, including financial services, telecommunications, and healthcare, alongside streamlined approval processes for greenfield investment.
Several flagship investments by European and Middle Eastern groups in 2024, particularly in autos, chemicals, and energy, were pointed to as evidence of continued long-term commitment to the Chinese market.