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China H1 2026 Foreign Equity Direct Investment Up 55% to $63.8B

China’s foreign equity direct investment reached $63.8 billion in the first half of 2026, up 55% year on year, according to the State Administration of Foreign Exchange’s H1 2026 balance of payments report. Net capital paid-in, which reflects long-term investment intent, rose by $43.1 billion. Reinvested earnings of foreign-invested enterprises in China grew 31% year on year.

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AI take

The composition matters more than the headline: net capital paid-in, the gauge of durable long-term commitment, accounts for the bulk of the increase, while reinvested earnings growth signals existing foreign-invested enterprises are expanding rather than repatriating. That distinction separates genuine capacity building from financial-flow noise, and it lands as a counterpoint to the divestment narrative that has shaped sentiment on China exposure. Whether the paid-in share holds in subsequent balance-of-payments reports, and whether reinvestment keeps pace once base effects fade, is the open question.

Generated by AI for reference only.

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