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2021, China’s actual use of FDI hit RMB A Closer Look at China’s FDI
1.149 trillion, representing a 14.9 percent surge inflows in 2021
from the previous year. In US dollar terms, the
FDI inflows came in at US$173.48 billion, up 20.2 • FDI jump into the service industry and
percent year on year, according to the Ministry of high-tech sectors. China’s robust FDI growth
Commerce (MOFCOM). in 2021 was powered by strong investment in
services and high-tech sectors.
For comparison, in the COVID-ravaged year of
2020, FDI into Chinese mainland stood at RMB The total FDI inflow into the service sector
1.034 trillion, up 7.4 percent year-on-year. In increased 16.7 percent, year-on-year, to RMB
US dollar terms, it totaled US$149.34 billion, 906.49 billion (US$142.77 billion).
up by 5.7 percent, according to the Statistical
Bulletin of FDI in China released by MOFCOM in High-tech FDI continued to outperform, with the
November 2021. sector seeing FDI inflows jump 17.1 percent from
a year earlier, measured in Chinese yuan. Of it,
The robust double-digit growth last year is high-tech manufacturing rose 10.7 percent, and
considered remarkable on a relatively high base high-tech services grew 19.2 percent.
in 2020 – China registered positive growth of 5.7
percent at a time when global FDI plunged The MOFCOM didn’t reveal data for
34.7 percent. manufacturing FDI in 2021. Manufacturing FDI
trends are likely to remain flaccid, dampened
As to the number of foreign-invested enterprises by ongoing investment diversion into bolster
(FIEs), about 48,000 were registered in 2021, supply-chain security, according to Fitch Ratings.
up 23.5 percent year on year. This continues the
recovery from a slump in 2019 that saw the figure • FDI growth into China’s central regions
drop to 40,910 from 60,560 in 2018. went up. FDI growth into eastern and western
China were reported at similar levels, while
Global FDI rebounds in 2021, China China’s central region saw a relatively faster rate
still accounts for a fair share of FDI inflow.
China had remained as the world’s second biggest In 2021, the FDI actually used in China’s eastern,
FDI recipient for four years in a row, from 2017 to central, and western regions climbed by 14.6
2020, only after the US, according to MOFCOM. percent, 20.5 percent, and 14.2 percent year-on-
It even narrowed the gap that year when the US year, respectively.
saw a sharp drop from US$261 billion to US$156
billion in FDI inflows due to the pandemic. • FDI from BRI and ASEAN countries
jumped. Investment into the Chinese mainland
In 2020 when global FDI saw a deep decline, from countries along the Belt and Road Initiative
China’s actual use of FDI accounted for about (BRI) and the Association of Southeast Asian
15 percent of the global total, up from the 6.7 Nations (ASEAN) jumped 29.4 percent and 29
percent recorded in 2015. percent, respectively.
In 2021, overall global FDI flows showed a strong Fitch Ratings in November 2021 projected
rebound, up 77 percent to reach an estimated the total FDI in China would see more inflow
US$1.65 trillion, and surpassing pre-pandemic from the 14 member countries of the Regional
levels, according tothe United Nations Conference Comprehensive Economic Partnership (RCEP),
on Trade and Development (UNCTAD). China’s which takes effect this year.
share of global FDI flows is expected to fall
back somewhat, as FDI in most economies RCEP member countries, which include
rebounded, among which FDI flows into the US Singapore, South Korea and Japan, together
more than doubled and into ASEAN countries accounted for 42 percent of China’s total FDI in
increased 35 percent. 2020, excluding Hong Kong and Macao (a large
SOUTH CHINA BUSINESS JOURNAL 4
1.149 trillion, representing a 14.9 percent surge inflows in 2021
from the previous year. In US dollar terms, the
FDI inflows came in at US$173.48 billion, up 20.2 • FDI jump into the service industry and
percent year on year, according to the Ministry of high-tech sectors. China’s robust FDI growth
Commerce (MOFCOM). in 2021 was powered by strong investment in
services and high-tech sectors.
For comparison, in the COVID-ravaged year of
2020, FDI into Chinese mainland stood at RMB The total FDI inflow into the service sector
1.034 trillion, up 7.4 percent year-on-year. In increased 16.7 percent, year-on-year, to RMB
US dollar terms, it totaled US$149.34 billion, 906.49 billion (US$142.77 billion).
up by 5.7 percent, according to the Statistical
Bulletin of FDI in China released by MOFCOM in High-tech FDI continued to outperform, with the
November 2021. sector seeing FDI inflows jump 17.1 percent from
a year earlier, measured in Chinese yuan. Of it,
The robust double-digit growth last year is high-tech manufacturing rose 10.7 percent, and
considered remarkable on a relatively high base high-tech services grew 19.2 percent.
in 2020 – China registered positive growth of 5.7
percent at a time when global FDI plunged The MOFCOM didn’t reveal data for
34.7 percent. manufacturing FDI in 2021. Manufacturing FDI
trends are likely to remain flaccid, dampened
As to the number of foreign-invested enterprises by ongoing investment diversion into bolster
(FIEs), about 48,000 were registered in 2021, supply-chain security, according to Fitch Ratings.
up 23.5 percent year on year. This continues the
recovery from a slump in 2019 that saw the figure • FDI growth into China’s central regions
drop to 40,910 from 60,560 in 2018. went up. FDI growth into eastern and western
China were reported at similar levels, while
Global FDI rebounds in 2021, China China’s central region saw a relatively faster rate
still accounts for a fair share of FDI inflow.
China had remained as the world’s second biggest In 2021, the FDI actually used in China’s eastern,
FDI recipient for four years in a row, from 2017 to central, and western regions climbed by 14.6
2020, only after the US, according to MOFCOM. percent, 20.5 percent, and 14.2 percent year-on-
It even narrowed the gap that year when the US year, respectively.
saw a sharp drop from US$261 billion to US$156
billion in FDI inflows due to the pandemic. • FDI from BRI and ASEAN countries
jumped. Investment into the Chinese mainland
In 2020 when global FDI saw a deep decline, from countries along the Belt and Road Initiative
China’s actual use of FDI accounted for about (BRI) and the Association of Southeast Asian
15 percent of the global total, up from the 6.7 Nations (ASEAN) jumped 29.4 percent and 29
percent recorded in 2015. percent, respectively.
In 2021, overall global FDI flows showed a strong Fitch Ratings in November 2021 projected
rebound, up 77 percent to reach an estimated the total FDI in China would see more inflow
US$1.65 trillion, and surpassing pre-pandemic from the 14 member countries of the Regional
levels, according tothe United Nations Conference Comprehensive Economic Partnership (RCEP),
on Trade and Development (UNCTAD). China’s which takes effect this year.
share of global FDI flows is expected to fall
back somewhat, as FDI in most economies RCEP member countries, which include
rebounded, among which FDI flows into the US Singapore, South Korea and Japan, together
more than doubled and into ASEAN countries accounted for 42 percent of China’s total FDI in
increased 35 percent. 2020, excluding Hong Kong and Macao (a large
SOUTH CHINA BUSINESS JOURNAL 4
