Foreign Direct Investment in China

Measures the value of foreign direct investment actually utilised in China (foreign-invested enterprises), expressed as the year-to-date year-on-year change. It is published by the Ministry of Commerce (MOFCOM), alongside the number of newly established foreign-invested firms.

MOFCOM aggregates FDI actually paid in by foreign-invested enterprises and reports the year-to-date year-on-year change, typically in yuan. Because it is cumulative from January, each release incorporates the earlier months of the year.

Rising FDI reflects multinationals' confidence in China and supports growth and the capital account; a sustained decline is read as a deteriorating investment climate and can weigh on the yuan and on the country's risk perception.

As a year-to-date figure it smooths monthly movements and makes the standalone month hard to see. Coverage is limited to investment channelled and recorded by MOFCOM, may differ from balance-of-payments figures, and is subject to methodological changes and seasonality (the Chinese New Year effect).