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Analyzing China’s Foreign Direct Investment (FDI) Performance in the First Half of 2024

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China’s H1 2024 FDI data shows a decline in utilized FDI amount but an increase in the number of newly registered FIEs. Germany and Singapore increased investment, with a focus on high-tech manufacturing and professional services reflecting growing interest in China’s innovation-driven industries.


According to recent data from China’s Ministry of Commerce (MOFCOM), the country’s foreign direct investment (FDI) performance in H1 2024 presents a mixed picture. While the actual utilized FDI amount declined by 29.1 percent year-on-year to RMB 498.9 billion (equivalent to US$69.93 billion), the number of newly registered foreign-invested enterprises (FIEs) reached 26,870, reflecting a 14.2 percent increase year-on-year. Notably, investment from Germany and Singapore in China increased by 18.1 percent and 10.5 percent, respectively, during the January to June period, highlighting the strategic focus of these nations in the Chinese market.

In this article, we delve into China’s H1 2024 FDI data, examining the latest trends and challenges. We also explore strategic opportunities for foreign investors within the current economic landscape. As China prioritizes attracting investment in high-tech manufacturing, modern services, and green energy, understanding these dynamics is crucial for making informed decisions in this evolving market.

High-tech manufacturing, a key focus area for China’s economic strategy, also saw positive developments. FDI in this segment reached RMB 63.8 billion (US$8.94 billion), which constituted 12.8 percent of the total FDI for the period. This figure reflects a year-on-year increase of 2.4 percentage points, indicating growing foreign interest in China’s high-tech and innovation-driven industries. This growth aligns with China’s broader push towards advancing technological capabilities and fostering innovation as part of its economic transformation.

Particularly noteworthy are the substantial FDI inflows into specific segments such as medical instrument manufacturing and professional technical services. In the medical instrument sector, FDI surged by 87.5 percent, highlighting the increased foreign investment in healthcare technology and medical innovations. This growth reflects the sector’s expanding role in China’s healthcare system and its attractiveness to global investors seeking to capitalize on the country’s advancing medical infrastructure.

Similarly, the professional technical services sector saw a significant 43.4 percent increase in FDI, underscoring the rising demand for specialized services and expertise. This growth points to a broader trend of increased foreign engagement in sectors that support technological and professional advancements within China.

Between January and June 2024, investment from Germany and Singapore in China increased by 18.1 percent and 10.5 percent, respectively. This growth highlights a rising interest from these nations even as overall FDI experienced a broader decline.

This article is republished from China Briefing. Read the rest of the original article.

China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.

Business

China and the UK Resume Economic and Financial Discussions After Six-Year Break

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China and Britain resumed economic talks after six years, aiming to improve relations. Chancellor Reeves seeks cooperation but raises concerns over Russia’s support and Hong Kong’s civil liberties.


Resumption of Talks

Taipei, Taiwan (AP) — China and the United Kingdom have reignited economic discussions after a six-year pause, spurred by British Treasury Chief Rachel Reeves’ recent visit to Beijing. The Labour government aims to mend strained relations with China, the world’s second-largest economy. Reeves met with Chinese leaders and underscored the necessity for a "stable, pragmatic" partnership, emphasizing collaboration on mutual interests while maintaining transparency in disagreements.

Economic Collaboration

During her talks, Reeves sought to address key issues such as reducing economic support to Russia and advocating for basic rights in Hong Kong. Both nations signed agreements expected to infuse £600 million ($732 million) into the U.K. economy over the next five years. These agreements target crucial sectors including finance, with Reeves emphasizing that this renewed engagement may generate up to £1 billion for the U.K.

National Security Concerns

While seeking better ties, there are mounting concerns regarding national security and human rights abuses in China. Critics from the opposition have questioned the balance between economic opportunities and safeguarding Britain’s interests. Reeves acknowledged the importance of national security but highlighted the need for pragmatic relations with global partners, stating that ignoring China is not a viable option for the U.K.’s economic future.

Source : China and the UK restart economic and financial talks after a 6-year hiatus

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Indonesia Needs to Take a Critical Stance on China’s Global Order Vision

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During his visit to China, Indonesian President Prabowo secured $10 billion in investments and issued a Joint Statement, raising concerns about Indonesia’s neutrality amid China’s global vision and territorial claims.


Indonesian President’s Visit to China

During his visit to China from November 8 to 10, 2024, Indonesian President Prabowo Subianto secured a remarkable US$10 billion in investments and issued the Joint Statement on Advancing the Comprehensive Strategic Partnership. This document has raised eyebrows as it suggests alignment with China’s global vision, potentially undermining Indonesia’s traditionally impartial stance among major powers. Notably, it includes discussions on joint development in areas with overlapping territorial claims, despite Indonesia being a non-claimant in the contentious South China Sea.

Strengthening Bilateral Relations

President Prabowo considers China a significant partner, reflecting on centuries of bilateral collaboration. This visit highlights Indonesia’s commitment to enhancing cooperation across various sectors, including technology and green energy. China also pledged support for Prabowo’s free meal program, which is part of Indonesia’s larger Food Supplementation and School Feeding initiative, reinforcing the ties between the two nations.

Implications of the Joint Statement

The Joint Statement emphasized shared aspirations for the future but also raised concerns about Indonesia’s strategic positioning. By commending China’s narrative, particularly the concept of a "community with a shared future," Indonesia may inadvertently compromise its neutrality amid major power rivalries. Given the complexities surrounding this language, it is crucial for Indonesia to approach such statements carefully to uphold its independent foreign policy.

Source : Indonesia must be critical of China’s global order vision

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Cross-Border Data Transfers: New Draft Guidelines Clarify Certification for Personal Information Protection

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China’s draft measures for personal information protection in cross-border data transfers clarify certification procedures, eligibility, and requirements. Released by the Cyberspace Administration, they aim to enhance data governance and privacy, ensuring compliance and safeguarding personal information in international exchanges.


China’s new draft measures provide clarity on the certification process for personal information protection in cross-border data transfers (CBDT). Aimed at enhancing data governance, safeguarding privacy, and ensuring regulatory compliance, the draft measures outline eligibility criteria for applying the certification mechanism, specify the requirements, and detail the certification procedures.

On January 3, 2025, the Cyberspace Administration of China (CAC) issued a draft document titled Measures for the Certification of Personal Information Protection for Cross-Border Data Transfers (hereinafter, draft measures) for public consultation. The draft measures, comprising 20 detailed articles, outline a comprehensive framework for certifying the security and compliance of personal data transfers beyond China’s borders.

With the feedback deadline set for February 3, 2025, the draft measures represent a crucial step in China’s broader strategy to strengthen data governance, ensure cybersecurity, and address global concerns over the safety of cross-border information flows.

Article 3 of the draft measures defines “PI protection certification” in cross-border data transfers as the formal evaluation process carried out by bodies authorized by the State Administration for Market Regulation (SAMR).

These certification bodies are responsible for assessing the compliance of personal information processors with the requirements of secure cross-border data transfers. The certification ensures that processors—whether domestic or foreign—adhere to the stringent criteria set out in the regulations, thereby protecting individuals’ personal information while enabling international data exchanges. Certified entities must demonstrate their capacity to manage cross-border data transfers in compliance with the standards laid out by the CAC and SAMR.

The certification process not only verifies compliance but also serves as an assurance to the public and regulatory authorities that the certified processors meet the required data protection measures.

Moreover, the scope of “cross-border data transfers” encompasses several scenarios where personal information moves across national boundaries. These include:


This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in ChinaHong KongVietnamSingapore, and India . Readers may write to info@dezshira.com for more support.

Read the rest of the original article.

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