China Sees Surge in Foreign Investment as U.S. and EU Firms Expand in Tech Sectors

Beijing credits innovation, talent, and stable economy as key drivers behind renewed global interest.

Beijing, June 17, 2025 — China is reporting a significant rise in foreign direct investment (FDI), particularly from U.S. and European companies betting big on the country’s high-tech and digital sectors.

Foreign Ministry spokesperson Lin Jian said Monday that the influx of investment reflects growing global confidence in China’s innovation-led economy, its resilient supply chains, and strong research and development ecosystem.

“The world is voting with its money. More U.S. and EU firms are choosing to grow in China — not just in traditional industries, but in AI, autonomous driving, and digital platforms,” Lin said.

Beijing has introduced a 2025 Action Plan along with updated foreign investment catalogs to create a more open, attractive investment environment. These incentives target sectors deemed crucial to the country’s long-term growth and technological leadership.

Foreign companies are responding. U.S. and German firms in particular are expanding operations in artificial intelligence, driverless vehicle technology, semiconductors, and green energy, seeing China as both a manufacturing base and a growing consumer market.

The Chinese government argues that this trend runs counter to the narrative of “de-risking” and “decoupling” often heard in Western political circles.

While geopolitical tensions remain, economic indicators suggest that China remains central to global technology investment flows, with multinationals balancing risk with access to innovation and scale.