China recorded 13,987 new foreign-invested enterprises (+11% YoY) in January–March 2026 while utilized foreign capital fell -7.3% YoY to ¥249.6B, highlighting continued divergence between firm creation and capital inflows.

• Total utilized foreign capital declined -7.3% YoY to ¥249.6B despite rising enterprise formation, indicating weaker aggregate inflows even as investment activity expanded in terms of new entities.
• Manufacturing attracted ¥71.46B of foreign capital, while services accounted for ¥174.6B, showing the service sector remained the dominant destination for foreign investment.
• High-tech industries received ¥102.73B (+30.7% YoY), representing 41.2% of total FDI, an increase of +12 ppts YoY, indicating a growing concentration of inflows in technology-related sectors.
• Within high-tech industries, R&D and design services rose +127.8% YoY, computer and office equipment manufacturing increased +88.1% YoY, and electronic and communication equipment manufacturing grew +23.8% YoY, pointing to strong gains in advanced subsectors.
• The divergence between overall FDI contraction and high-tech expansion suggests inflows are becoming more concentrated in targeted industries rather than broadly distributed across sectors.
• By source country, investment from Luxembourg rose +96.8% YoY, Switzerland +50.4% YoY, France +42.3% YoY, and South Korea +35.2% YoY, highlighting uneven but notable increases from selected foreign investors.