
Attracting Foreign Direct Investment into China`s Economy // Far Eastern Studies, 2025. No. 2. Pp. 43-55. DOI: 10.31857/S0131281225020036
ISSN 0131-2812
The article provides a general description of attracting foreign direct investment (FDI) into the China’s economy, including the dynamics of their attraction over the years of reforms, geographical and sectoral structure, and regional location. It is noted that the participation of enterprises with foreign capital in China's commodity exports and imports is gradually decreasing, but remains significant. The author highlights the factors of growth in attracting FDI in 2020-2022 and the reasons for the slowdown in their inflow to the China’s economy in 2023-2024. It is noted that, in general, FDI does not play a significant role in China as a source of capital investment in fixed assets. For China, attracting foreign capital is important as a channel for attracting new technologies. The article outlines the key measures taken by the Chinese authorities in accordance with the Action Plan to Stabilize Foreign Investment for 2025, to stimulate the attraction of FDI in advanced industries of mechanical engineering, instrumentation, microelectronics, semiconductors, green energy, telecommunications, information technology, healthcare and education, and scientific research. Despite the decline in FDI inflows, China remains a major global recipient. The internal economic and logistical conditions for the implementation of the strategy of attracting FDI in China have been created and are working. However, external factors may hinder the implementation of the strategy in the future, namely the aggravation of contradictions with the United States, the slowdown in global economic growth, and disruption of international product value chains.
Keywords: China | foreign direct investment | joint ventures | new technologies |
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