Core Insights - The global external environment for foreign investment has tightened, leading to a certain degree of value chain restructuring, yet China's resilience in attracting foreign investment remains strong, making it a favored destination for foreign capital [1] Group 1: Foreign Investment Trends - In the first 11 months of 2025, a total of 61,207 new foreign-invested enterprises were established in China, representing a growth of 16.9% compared to the previous period [6][7] - By the end of June 2025, China's actual foreign investment utilization reached $708.73 billion, surpassing the target of $700 billion six months ahead of schedule [10][12] - The actual foreign investment in China's high-tech industries during the first 11 months of 2025 amounted to 221.26 billion yuan, indicating a significant influx of foreign capital into sectors aligned with China's economic transformation [15][17] Group 2: Sector-Specific Growth - The structure of foreign investment in China is continuously improving, with notable increases in specific sectors: - E-commerce services grew by 127% - Medical instruments and equipment manufacturing increased by 46.5% - Aerospace manufacturing rose by 41.9% [20] Group 3: R&D Investment by Multinational Corporations - According to a report by the Ministry of Commerce Research Institute, from 2013 to 2023, R&D expenditures by multinational companies in China increased by 86.5%, reflecting a shift from technology transfer and contract manufacturing to joint R&D and collaborative industrial ecosystem building [23]

Core Viewpoint - The article discusses the evolution of foreign investment in China during the "14th Five-Year Plan" period, highlighting a transition from high growth to a decline and then a narrowing of the decline, showcasing resilience amid global economic fluctuations and value chain restructuring [1]. Group 1: Foreign Investment Scale - The foreign investment scale in China has remained high, with actual foreign investment amounting to approximately $600 billion from 2021 to 2024, surpassing 43 trillion yuan [3]. - In 2021, the actual foreign investment reached 1,149.36 billion yuan, a year-on-year increase of 14.9%. In 2022, it was 1,232.68 billion yuan, up 6.3%. However, in 2023, it dropped to 1,133.91 billion yuan, a decrease of 8.0%, and in 2024, it further declined to 826.25 billion yuan, down 27.1% [5][4]. - By the first four months of 2025, actual foreign investment was 320.78 billion yuan, showing a year-on-year decline of 10.9%, but the decline was 16.2 percentage points less than the total decline in 2024 [5]. Group 2: Structural Changes in Foreign Investment - There is a structural transformation in how foreign investment is perceived and utilized in China, with higher expectations for advanced technology and services as the country undergoes economic restructuring [8]. - The competitive strength of Chinese enterprises has increased, leading to a shift from raw materials to more complex manufactured goods in trade with developed countries, indicating a closer alignment in industrial division and technological levels [9]. - Foreign investment is increasingly focused on local R&D and integration with domestic supply chains, transforming China from a global manufacturing base to an innovation hub [9][10]. Group 3: Policy and Future Outlook - The "14th Five-Year Plan" emphasizes attracting foreign investment through various measures, including optimizing foreign investment services and encouraging reinvestment of profits by foreign enterprises [3][6]. - The Chinese government is accelerating the opening of the service sector, with a focus on telecommunications, finance, and healthcare, to enhance foreign investment opportunities [12]. - Looking ahead, the next decade is expected to see significant improvements in China's competitive advantages for attracting foreign investment, with a focus on high-quality development and international cooperation [14][15].