Foreign direct investment into the Chinese mainland eased by 8 percent in 2023, totaling 157.1 billion dollars, according to Interfax citing China’s Ministry of Commerce. Investors in the year faced a softer rise in some traditional sectors even as overall FDI remained robust enough to shape China’s foreign investment profile.
Within this period, the service sector saw investment volumes retreat by 13.4 percent while manufacturing experienced a smaller decline of 1.8 percent. The contrasting trends highlight the shifting priorities of foreign capital, with services absorbing more attention in some regions and manufacturers maintaining a critical role in the economy’s export-oriented engine.
Despite the net dip in aggregate inflows, several countries stepped up their commitments to China. Notable gains came from France, up 84.1 percent year over year, the United Kingdom with an 81 percent rise, the Netherlands up 31.5 percent, Switzerland increasing 21.4 percent, and Australia climbing 17.1 percent. These movements reflect ongoing interest in China’s consumer markets, advanced manufacturing base, and evolving services landscape, even amid global financial volatility.
In 2023, China registered a strong uptick in foreign corporate activity, with 53,766 new foreign companies established, a substantial 39.7 percent year-over-year increase. This surge underscores continued confidence from international firms in China’s market access, governance framework, and long-term growth potential. Expanded company formation typically foreshadows greater cross-border trade, technology transfer, and regional supply chain participation, especially for firms seeking proximity to Asia-Pacific demand centers.
Preliminary data for 2023 position China as the world’s leading automobile exporter for the first time in history. The export surge in vehicles and related components added momentum to China’s role as a key player in global automotive supply chains. Part of this acceleration stems from shifts in regional demand and manufacturer scale, with Russia identified as a contributing market in the period. Observers note that China’s auto industry entered 2024 with ambitious export plans and a broader push into overseas assembly, partnerships, and newer mobility technologies, signaling a continued push to diversify markets and strengthen international footprints.
In related market dynamics, Russia recorded notable growth in CASCO related sales during the year, reflecting broader demand for automotive parts and aftercare services as trade and distribution networks adapted to shifting sanctions and currency environments. These peer-market signals illustrate how China’s manufacturing strength, coupled with strategic foreign investment, can influence regional automotive ecosystems and cross-border trade flows in the near term.