Foreign investment in China rises 2.5% in September as technology's share expands
Key Facts
Foreign capital actually utilised in China rose 2.5% in September 2026 from the same month a year earlier, according to China's Ministry of Commerce, as high-tech industries increased their share of incoming investment. The ministry said in its statement that "foreign investment actually utilised in September grew 2.5% year on year." During January–September, 47,800 new foreign-invested companies were established across China, down 2.3% from the same period a year earlier. The rise in investment actually utilised in September came after cumulative inflows reached 479.95 billion yuan in January–August, according to figures published by Xinhua on China's State Council website. Those inflows for the period through August were 5.3% below their level in the corresponding period a year earlier.
In the sectoral breakdown for January–September, high-tech industries accounted for 41.6% of total foreign capital actually utilised, according to the commerce ministry's statement. Their share rose by 11.9 percentage points from the same period a year earlier, with increased investment in scientific services and technology manufacturing. Foreign investment actually utilised in high-tech industries had reached 200.26 billion yuan in January–August, according to the earlier figures carried by Xinhua. That investment grew 35.1% year on year during the period through August. In the latest breakdown for January–September, foreign investment actually utilised in services turning scientific and technological achievements into practical applications rose 76.8% year on year. Investment in research and development and design services also grew 59.2% from the same period a year earlier, according to the ministry. Growth in electronics and communications equipment manufacturing reached 32.8% in January–September, with the rise in foreign investment spanning research, application and production activities.
By source of capital, investment actually utilised in China from Canada rose 90.5% in January–September from the same period a year earlier, according to China's Ministry of Commerce. Investment from France posted an annual increase of 31.8% over the same period, among the countries whose investment rose, according to the statement. Investment actually utilised from Switzerland also rose 26% from the corresponding period a year earlier. Growth in investment from the United States reached 7.7% in January–September, according to the geographical breakdown published by the ministry. Investment from South Korea increased 6.8% year on year, and the country figures in the statement include investment routed through free ports.
These developments come as China's economic growth accelerated to 4.5% year on year in the third quarter of 2026, according to growth data published on October 19 and reported by Reuters. The economy had grown 4.3% year on year in the second quarter, while a Reuters poll had forecast 4.4% for the third quarter. Meanwhile, fixed-asset investment, excluding rural households, fell 7.2% in January–September from the same period a year earlier, according to China's National Bureau of Statistics, on a comparable basis. The decline was steeper in private fixed-asset investment, which fell 10.4% year on year over the same period. On a monthly basis, total fixed-asset investment, excluding rural households, rose 0.07% in September.
Against this backdrop, China announced a plan in June 2026 comprising 15 measures to stabilise and improve the utilisation of foreign investment, according to a Xinhua report published on the State Council website. The plan focused on expanding market access and simplifying investment procedures for foreign investors. As part of economic support measures announced on September 29, 2026, the People's Bank of China expanded the scope of its pledged supplementary lending facility, Reuters reported. The expansion includes support for investment in water, electricity, computing and communications networks, alongside urban pipeline networks and logistics. Looking ahead, the State Administration of Foreign Exchange plans to take additional measures to facilitate cross-border investment and financing for multinational companies. The plans were announced in a report published by the Fujian provincial government on October 14, 2026, citing China Daily.