China’s Declining Foreign Direct Investment: Why Global Capital Is Turning Away and Why Beijing Can’t Stop It

The Chinese market, which was once a highly sought-after destination for international capital, is now regarded as a high-risk environment.
China’s Declining Foreign Direct Investment: Why Global Capital Is Turning Away and Why Beijing Can’t Stop It
U.S. President Donald Trump (L) and Chinese leader Xi Jinping leave after their talks at the Gimhae Air Base, located next to the Gimhae International Airport in Busan, South Korea, on Oct. 30, 2025. Trump and Xi opened on Oct. 30 their first face-to-face meeting in six years, seeking a truce to end a trade war that has roiled the world economy. Andrew Caballero-Reynolds/AFP via Getty Images
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Commentary

In the third quarter of 2025, foreign direct investment (FDI) inflows into China continued to decline, highlighting ongoing economic challenges and growing investor caution.

Wang He
Wang He
Author
Wang He has master’s degrees in law and history, and has studied the international communist movement. He was a university lecturer and an executive of a large private firm in China. Wang now lives in North America and has published commentaries on China’s current affairs and politics since 2017.