China rises foreign investment flows despite global downward trend

China raised foreign investment flows despite the global downward trend, the Chinese government noted.

In 2018, the foreign investment disbursed was estimated at 138.310 million dollars, with a year-on-year increase of 1.5 percent.

Then, in 2019, these same flows totaled 141,230 million, an annual increase of 2.1%.

Finally, in 2020, the foreign investment disbursed amounted to 149.340 million dollars, with an advance of 5.7% year-on-year.

Likewise, in 2020, foreign direct investment in China had the following characteristics.

First, they reached an unprecedented magnitude. Despite the sharp decline in global direct investment, direct investment in China maintained its upward trend, making progress in the total amount of FDI, in the growth rate and in its global share.

Second, the sectoral distribution of foreign investment has continued to optimize. FDI in the services sector reached 117.26 billion dollars, representing a year-on-year increase of 13.6 percent. FDI in high technology industries reached 42,760 million, with 9.5%, more in annual terms and represented 28.6% of total FDI.

Third, the main sources of FDI remained stable. Investment from the top 15 sources of FDI grew by 4.7 percent year-on-year.

Fourth, the strong regional development potential has been better exploited.

Foreign investment in the eastern regions increased 7.1%, and the experimental free zones attracted 17.9% of China’s total FDI.

Investment flows

Direct investment abroad created employment and improved tax revenues in recipient countries. 2.17. In 2018, 2019 and 2020, direct investments abroad amounted to USD 143,040 million, USD 136,910 million and USD 132,940 million, respectively.

At the same time, investment flows from Chinese companies in host countries generated local employment and improved tax revenues for those countries.

In 2019, Chinese companies present abroad contributed a total of $ 56 billion in tax revenue to the countries or regions receiving their investments.

At the end of 2019, Chinese companies present in other countries employed 2.266 million foreign workers, which represented 60.5% of the total workforce of these companies abroad.


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