Since China opened its doors to foreign investors around forty years ago, it has been a top recipient for international direct investments. Despite the gradual slowdown of the country’s overall economic growth, foreign interest in China continues to be strong. After a slight decline in 2016, foreign direct investment increased again by 3% to US$134.97 billion in 2018.
The relatively steady increase in foreign investments has been accompanied by a structural shift in the projects financed and locations selected. Rising costs – particularly in the previously favoured coastal provinces – have led to a shift to the more technologically demanding production and services industries. Investment in the inland areas has also sharply increased in the past decade.