How much does China invest abroad? US$174 billion keeps it world’s No 3 FDI source
As China redraws global investment map, mainland firms use leading roles to secure critical supply chains with overseas plans
China was the world’s third-largest source of foreign direct investment and the fourth-largest destination last year, holding firm in an annual ranking as it expanded its role in critical raw materials, tech services and the broad energy transition, while the United States remained the global leader in both categories, according to a new report.
Chinese companies invested US$174 billion overseas last year, ranking just behind Japan, and both trailed the US, which saw FDI outflows of US$263 billion, according to findings by the United Nations Conference on Trade and Development (UNCTAD).
The latest rankings represent a departure from 2020, when China ranked second worldwide in both FDI inflows and outflows.
Mainland China also attracted US$105 billion in inbound FDI last year, trailing Singapore, Hong Kong and the US, which remained the world’s largest recipient by drawing US$277 billion, the report said.
However, the UN agency said that the pace of decline had moderated, noting that the slowdown coincided with a “challenging global investment environment” shaped by rising costs, supply-chain diversification, geopolitical tensions and tariff uncertainties.