Foreign Investment in China Surges in High-Tech Sectors

The Government of China is seeing a significant increase in foreign capital as part of a strategic transition termed China Opportunity 2.0. Vice Minister of Commerce Yan Dong reported on July 23, 2026, that nearly 4,800 foreign-funded enterprises expanded their investments during the first half of the year. Total foreign direct investment in actual use reached 402.14 billion yuan, with the number of newly established foreign-invested companies rising 5.3 percent year-on-year.

This growth is heavily concentrated in high-tech industries, which saw a 33.2 percent year-on-year surge in investment. This trend aligns with the country's 15th Five-Year Plan and a government action plan to optimize market access in finance, pharmaceuticals, and services. Premier Li Qiang characterized this era as offering across-the-board innovation empowerment and high-return opportunities for global enterprises.

Major multinational corporations are driving this expansion through large-scale projects. BASF established its largest worldwide investment with an integrated chemical complex on Donghai Island, while Mercedes-Benz Group AG launched an all-electric GLC SUV featuring Chinese-developed AI and autonomous driving technology. Additionally, Schneider Electric has accelerated its investment by expanding research and manufacturing capabilities within the country.