24.04.202609:00:00UTC+00China’s FDI Contraction Deepens in March, Signaling Mounting Investment Pressures

Foreign direct investment (FDI) into China continued to retreat in March 2026, with the pace of decline accelerating compared with the previous month, according to the latest data updated on 24 April 2026.

The indicator for FDI fell to -7.30% in March 2026, weakening from -5.70% recorded in February 2026. The deeper negative reading suggests foreign investors further scaled back their commitments, underscoring persistent caution toward deploying new capital into the world’s second-largest economy.

The back-to-back deterioration in February and March highlights ongoing headwinds for China’s external funding environment at a time when policymakers are seeking to stabilize growth and restore investor confidence. While the data provide a clear signal of mounting pressure on inbound investment, further releases in the coming months will be closely watched for signs of either stabilization or continued erosion in foreign capital flows.