While the global economy faces mounting uncertainties, China's market continues to demonstrate remarkable resilience and attractiveness to international investors. Official data reveals that China's actual utilized foreign capital reached 723.31 billion yuan (approximately $112.35 billion) in the first half of 2022 , marking impressive year-on-year growth of 17.4% in local currency terms and 21.8% in US dollar terms.
Sectoral Breakdown Shows Shift Toward High-Tech Industries
The service sector emerged as the primary destination for foreign capital, absorbing 537.13 billion yuan with 9.2% growth. More notably, high-tech industries grew at 33.6% , significantly outpacing other sectors. Within this category, high-tech manufacturing expanded by 31.1% while high-tech services surged 34.4%, demonstrating strong international interest in China's advanced manufacturing and innovation-driven service sectors.
This investment pattern signals China's accelerating transition toward higher value-added, technology-intensive economic activities, creating new opportunities for foreign investors in cutting-edge industries.
Diverse Investor Base Highlights Global Confidence
Investment sources reflect broad-based confidence in China's market potential. South Korea led with 37.2% growth in capital inflows, followed by the United States (26.1%) and Germany (13.9%). These figures include investments channeled through free ports, indicating that both developed and emerging economies view China as a crucial investment destination.
Regional Development Strategy Bears Fruit
Geographically, foreign investment grew across all regions but showed particularly strong momentum in China's less-developed western areas. While eastern China maintained steady 15.6% growth, central and western regions expanded by 25% and 43.9% respectively. The western region's exceptional performance underscores the effectiveness of China's regional coordination strategy and improving investment conditions in previously underserved markets.
Enhanced Statistical Transparency
Since May 2022, China has expanded its foreign investment reporting to include previously excluded financial sectors such as banking, securities, and insurance. This methodological improvement provides a more comprehensive view of capital flows and enhances international comparability of China's investment data.
The robust foreign investment growth during a period of global economic instability demonstrates China's enduring appeal as an investment destination. As China continues to refine its business environment and deepen reform efforts, the influx of high-quality foreign capital is expected to contribute significantly to the country's economic transformation and long-term development.