High-tech FDI in China hits record 42.4% in first half

Summary

China's foreign direct investment (FDI) in actual use reached 402.14 billion yuan in the first half of 2025, with year-on-year growth recorded in May and June. The number of newly established foreign-funded enterprises rose 5.3 percent from a year earlier. High-tech industry accounted for a record 42.4 percent of total FDI.

BASF chairman Martin Brudermüller said stopping investment in China is equivalent to exiting half of the global market. Mercedes-Benz Group chairman Ola Källenius described China as the Champions League of the automotive industry. Amway China chairman Yu Fang said China has been its largest global market for 23 consecutive years.

Vice Minister of Commerce Ling Ji said foreign capital inflows exceed outflows and China remains a major global destination for cross-border investment.

Commentary

High-tech FDI accounting for over 42 percent of China's total in the first half signals a shift in global competitive priorities. For New Zealand SMEs reliant on trade, this is both an opportunity and a warning. On one hand, China's opening of high-end manufacturing and services creates entry points for NZ tech firms and professional service providers, for instance in agritech, environmental solutions or health foods, leveraging upgraded FTA provisions.

On the other hand, huge investments in autos and chemicals mean accelerating local substitution, intensifying price and technology competition for some NZ exports. Global supply chains are deepening around China; NZ SMEs must consider how to integrate into this ecosystem, rather than simply treating China as an end market. Cases like Amway's organic farm suggest deep localisation and R&D partnerships with foreign firms could open new pathways.

Keywords: foreign investment, China market, attracting foreign capital, high-tech industry, Ministry of Commerce, BASF, Mercedes-Benz, Amway, business environment, new quality productive forces

Source: China.org.cn