China recorded 8,631 new foreign-invested enterprises (+14% YoY) in January–February 2026 while utilized foreign capital fell -5.7% YoY to ¥161.45B, highlighting diverging trends between firm creation and capital inflows.

• Total utilized foreign capital declined -5.7% YoY to ¥161.45B despite rising enterprise formation, indicating weaker aggregate inflows even as investment activity broadened.

• Manufacturing attracted ¥47.52B of foreign capital, while services accounted for ¥111.22B, showing the service sector remained the dominant destination for foreign investment.

• High-tech industries received ¥63.21B (+20.4% YoY), representing 39.2% of total FDI, an increase of +8.5 ppts YoY, indicating a rising concentration of inflows in technology-related sectors.

• Within high-tech industries, R&D and design services surged +171.8% YoY, computer and office equipment manufacturing rose +84.1% YoY, and electronic and communication equipment manufacturing increased +35.5% YoY, pointing to strong growth in specific advanced subsectors.

• The divergence between overall FDI contraction and high-tech expansion suggests that inflows are becoming more concentrated in targeted industries rather than broadly distributed.

• By source country, investment from Canada rose +210% YoY, Switzerland +41.3% YoY, and France +3% YoY, highlighting uneven but notable increases from selected foreign investors.