China is witnessing renewed confidence from global investors despite swirling macroeconomic headwinds, with foreign enterprises doubling down on high-tech sectors and diverse regional partnerships. Official data reveals 12,603 new foreign-invested enterprises were established in Q1 2025 – a 4.3% year-on-year increase – even as total foreign direct investment (FDI) dipped to 269.23 billion yuan ($37.2 billion). Notably, March FDI surged 13.2% annually, signaling a potential turnaround.
Analysts cite China's unrelenting modernization push as a key driver. E-commerce services attracted over 100% more FDI in Q1 compared to 2024, while biopharmaceutical and aerospace equipment investments grew by 63.8% and 42.5% respectively. ASEAN nations amplified commitments by 56.2%, with EU investors following closely at 11.7% growth. Switzerland and the UK emerged as unexpected leaders, posting 60%+ increases through strategic free port channels.
Global firms are not just expanding operations but deepening roots: pharmaceutical giants like Sanofi and AstraZeneca are scaling up R&D hubs in China, drawn by what industry reports call a 'stable policy ecosystem' and high ROI potential. Over half of surveyed foreign companies in a South China AmCham study rank China among their top three investment priorities.
To sustain momentum, Beijing has unveiled 155 new market-opening measures spanning healthcare, tourism, and cross-border e-commerce while slashing its national negative list to 29 restricted sectors. Recent approvals for Siemens' telecommunications trials underscore this accessibility drive. With the FDI decline rate narrowing, experts suggest China's recalibration toward quality over quantity in foreign investment is bearing fruit.
