Despite the actual utilized foreign investment falling by 27.1 percent year-on-year to less than 827 billion yuan (US$113b) in 2024, China remains attractive to foreign investors in the long run. New foreign investments are largely concentrated in AI, and green and digital industries have grown for consecutive years. Last year saw 59,080 foreign companies, mostly in high-tech and tertiary industries, launch divisions in China, a 9.9-percent rise year-on-year. Based on the latest negative list issued in November 2024, foreign manufacturers of new energy vehicles, integrated circuits, precision equipment and biological and pharmaceutical productions can for the first time have the same market access as Chinese firms. Unlike the past when China was eager for foreign capital, now foreign investors are being encouraged to help more Chinese enterprises go abroad. Economists believe this reciprocity can safeguard future economic security.
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