China continued to attract foreign investment during the first half of 2026, with the number of newly established foreign-invested enterprises reaching 35,000, representing a 7% year-on-year increase, according to the State Administration for Market Regulation.
The growth was broad-based, with both major export-oriented provinces and border regions recording an increase in new foreign-invested businesses.
Among China’s leading export provinces, Hainan recorded the fastest growth, with newly established foreign-invested enterprises rising 38.6% compared with the same period last year. Shandong followed with 15.2% growth, while Guangdong and Jiangsu reported increases of 8.1% and 6.8%, respectively.
Hainan’s strong performance has been supported by the continued development of the Hainan Free Trade Port. Following the launch of island-wide special customs operations in December 2025, the province has introduced a series of opening-up measures designed to improve the business environment for international investors.
The consumer services sector also emerged as an important destination for foreign investment. During the first half of the year, newly established foreign-invested enterprises in health and social services increased 27.1% year on year. Businesses in wholesale and retail trade grew 11.9%, while the accommodation and catering sector recorded 11.7% growth, reflecting continued confidence in China’s domestic consumer market.
Separate data released by the Ministry of Commerce showed that nearly 4,800 foreign-funded enterprises expanded their investments in China during the same period. Foreign direct investment in high-tech industries increased 33.2% year on year, highlighting sustained interest in innovation-driven sectors.
To further improve the investment environment, China’s Ministry of Commerce, together with other government departments, introduced a new action plan in June 2026 outlining 15 measures aimed at stabilizing and optimizing foreign investment.
The plan focuses on expanding market access in the services sector, promoting the “Invest China” initiative, and ensuring that foreign-invested enterprises enjoy fair participation in government procurement and equal access to business opportunities.
The latest figures indicate that China continues to attract foreign investors across a range of industries, supported by ongoing market-opening policies, high-tech investment opportunities, and measures designed to improve the overall business environment.
