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

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.