Foreign Investment in China Rises in First Quarter

Foreign direct investment in China's high-tech industries totaled 102.7 billion yuan in the first quarter of 2026, an increase of 30.7 percent from the same period a year earlier. The figure accounted for 41.2 percent of total foreign direct investment attracted by the country during those three months, according to data from the Ministry of Commerce.

Market observers and business executives said China's improving innovation ecosystem, vast market and more predictable policy environment are encouraging multinational companies to expand investment and operations in the country. They added that integrated industrial supply chains, ongoing industrial upgrading, stable market conditions, relatively low energy costs and a skilled labor force further support its competitiveness as a base for foreign companies.

One executive noted that for many multinational companies, innovation activities in China are increasingly complementing manufacturing there as businesses move up the value chain and deepen local integration. A managing partner for China at a consulting firm said rapid growth in green energy, biopharmaceuticals and electric vehicles is accelerating this shift, leading global businesses to reassess their strategies.

More than 6,200 foreign-invested enterprises were registered with customs authorities in the first quarter. The number of such companies engaged in import and export activity rose by more than 1,000 from a year earlier to reach 69,000. These enterprises recorded 3.47 trillion yuan in trade between January and March, up 16.1 percent year-on-year and marking the eighth consecutive quarter of growth.

A vice-minister at the General Administration of Customs said the foreign trade data reflects sustained confidence among global businesses in the Chinese market. The official added that stable policy expectations and an open business environment are allowing companies to select more trading partners and expand into additional markets.

A professor of economics at Nanyang Technological University in Singapore said the appeal of China's market comes from its diverse demand, broad applications and fast upgrading cycle. The push to expand domestic demand is expected to support consumption upgrading and create opportunities for foreign companies in high-end brands, sustainable products and professional services.

A researcher at the Chinese Academy of International Trade and Economic Cooperation said that after more than four decades of reform and opening-up, China's manufacturing sector has reached a high level of openness, with significant growth potential remaining in services.

The drive to expand services consumption is expected to open opportunities for foreign companies in healthcare, logistics, travel, certification and digital services. The company will open two new testing centers in Suzhou, Jiangsu province, and Chongqing in the second half of 2026 to expand services for automotive components, consumer electronics and other industries.

An executive vice-president for the company's Asia-Pacific region said China has become a key growth engine for its regional operations as the services sector opens further.