Foreign investment in China increased 35% from January to May

From January to May 2021, China captured 481 billion yuan of foreign investment, a year-on-year increase of 35.4%, the Ministry of Commerce reported.

From an industry perspective, the actual use of foreign capital in the service industry was 381.9 billion yuan, an increase of 41.6 percent year-on-year.

Meanwhile, the real use of foreign investment in high-tech industries increased by 34.6%, of which high-tech service industries increased by 37.6% and high-tech manufacturing industries increased by 25 percent.

In general, the bases of comparison are atypical due to the effects of the pandemic caused in early 2020.

Foreign investment

In terms of source, real investment in countries along the Belt and Road, ASEAN, and the European Union rose 54.1, 56, and 16.8%, respectively, year-over-year (including investment data across free ports).

To conclude, in terms of regional distribution, the real use of foreign capital in the eastern, central and western regions of China increased 37, 36 and 10.4%, respectively.

Global Results

Globally, Foreign Direct Investment (FDI) arrivals contracted 38% in 2020, to $ 846 billion, its lowest level since 2005.

China displaced the United States from the first position, with a collection of 212,476 million and 177,093 million dollars, respectively.

After an estimated 3.3% drop in 2020, one of the deepest global recessions in history, the International Monetary Fund (IMF) projects the global economy to grow 6% in 2021, then moderating the trend to 4.4% in 2022 .

Conversely, Luxembourg and the United States led the world in FDI emissions in 2020.

Luxembourg registered a growth of 267%, to reach 126,798 million dollars, while the United States remained stable (-0.8% year-on-year) with outflows of 117,954 million dollars.