Foreign investors stay bullish on China as FDI rises

Summary

China's actual utilised foreign direct investment (FDI) reached RMB 402.14 billion in the first half of 2024, with both May and June recording year-on-year growth. Nearly 4,800 foreign firms expanded their investment in China during the period. FDI in high-tech industries surged 33.2% year on year, accounting for a record 42.4% of total FDI.

Meng Huating, director of the Department of Foreign Investment Administration at the Ministry of Commerce, said foreign investment absorption is stabilising and improving. Vice Minister Ling Ji noted that the stock of foreign investment in China stands at nearly US$4 trillion, and the number of newly established foreign firms rose 5.3% year on year. BASF Chairman Martin Brudermüller said stopping investment in China means exiting half the global market, while Mercedes-Benz Chairman Ola Källenius called China's market a Champions League.

Services accounted for 57% of FDI in the first half, with modern services becoming a hotspot. A European Chamber of Commerce survey shows 75% of companies believe their production efficiency in China is higher than the global average.

Commentary

The 33.2% year-on-year growth in high-tech FDI, with a record 42.4% share and nearly 4,800 foreign firms expanding investment, underscores China's market shift from cost-driven to innovation-driven. For New Zealand SMEs in primary industries, the competition landscape has escalated: foreign giants like BASF and Mercedes-Benz are accelerating local R&D and vertical supply chain integration, narrowing the scope for simple raw material export or OEM models. Services FDI accounts for 57%, with rapid expansion in modern services and green technologies.

NZ companies can leverage differentiated advantages in agritech, health foods, and environmental technology to embed in China's foreign-invested ecosystem or co-create niche solutions with Chinese partners. The EU Chamber survey shows 75% of foreign firms in China have higher production efficiency than global averages, indicating a strong supply chain cluster effect. NZ SMEs could consider asset-light trials via cross-border e-commerce to tap into consumption upgrading in tier-2 and tier-3 cities, or participate in smart farming and sustainable packaging projects through technology collaborations.

China has released an updated catalogue encouraging foreign investment, with preferential policies for central and western regions and modern services. Early movers in these policy beneficiary areas can secure small entry points. The vast foreign-invested ecosystem is shifting from one-way technology transfer to collaborative co-creation.

NZ companies must focus on high-value-added, strongly localised niche strategies to find their place in the world's most competitive arena.

Keywords: foreign investment, China market, high-tech industries, multinational enterprises, New Zealand SMEs, supply chain, innovation, business environment

Summary in Chinese | 摘要

新华社7月23日报道，今年上半年中国实际使用外资4021.4亿元人民币，5、6月均同比正增长，近4800家外资企业追加对华投资。高技术产业吸引外资同比增长33.2%，占比42.4%创历史新高。商务部外资司司长孟华婷称吸收外资回稳向好，副部长凌激表示存量外资规模近4万亿美元，新设外资企业数量同比增长5.3%。

巴斯夫集团主席凯礼称停止在中国投资等于退出半数全球市场；梅赛德斯-奔驰主席康林松表示中国市场是冠军联赛。上半年服务业引资占比57%，现代服务业成热点。中国欧盟商会调查显示75%企业认为在华生产效率高于全球。

Commentary in Chinese | 评论

上半年中国高技术产业引资同比增长33.2%，占比达42.4%创新高，近4800家外企追加投资，凸显中国市场正从成本驱动转向创新驱动。对深耕初级产业的新西兰中小企业而言，竞争赛道已然升级：外资巨头如巴斯夫、奔驰加速本地化研发与供应链垂直整合，意味着单纯出口原料或贴牌模式空间收窄。服务业引资占比57%，现代服务、绿色科技等领域快速扩张，新西兰企业可依托在农业科技、健康食品、环保技术上的差异化优势，嵌入在华外资生态或与中国伙伴共建细分市场方案。

欧盟商会调查显示75%在华外企生产效率高于全球，供应链集群效应依然强劲，NZ SME不妨借此进行轻资产试水，例如通过跨境电商触达二三线城市消费升级需求，或以技术合作参与智慧牧场、可持续包装项目。中国已发布新版鼓励外商投资目录，中西部及现代服务业获倾斜，提前布局政策红利区域可实现小切口切入。庞大存量外资生态正从“单向技术输出”转向“协同共创”，新西兰企业唯有聚焦高附加值、强本地化的利基策略，方能在全球最激烈赛场上找到属于自己的席位。

关键词: 外资, 中国市场, 吸引外资, 高技术产业, 商务数据, 跨国企业, 投资中国, 产业链, 创新共生, 营商环境

Source: Xinhua Net