(Yicai) July 23 -- China’s foreign investment inflows are showing early signs of improvement, despite continuing to fall over the first half of the year, with high-tech industries becoming a key growth driver.

Foreign direct investment into China fell 5 percent to CNY402.1 billion (USD59.4 billion) in the six months ended June 30 from a year earlier, the commerce ministry said today. That was better than the 8.6 percent decline in the first five months of 2026 and the 15.2 percent drop a year ago.

The figures for last month and May rose for two consecutive months, indicating a stabilizing and improving trend in FDI inflows, the ministry pointed out.

Global cross-border investment has been weak this year amid a complex and volatile international environment, Meng Huating, who heads the ministry’s foreign investment department, said at a press conference held by the State Council today. As a result, China's ability to attract FDI has faced pressure, but the overall tone of "stability" has not changed, she said.

First-half FDI into high-tech industries surged around 33 percent from a year earlier, with the tech sector’s share of total utilized foreign investment rising to a record high of 42.4 percent. Meanwhile, FDI into modern service sectors accounted for 57 percent of the total.

The number of newly established foreign-invested enterprises rose 5.3 percent in the six months, and nearly 4,800 foreign-invested companies increased their investment in China, reflecting their ongoing confidence in the Chinese market, Commerce Vice Minister Yan Dong said.

By the end of last year, China's stock of foreign direct investment had approached USD4 trillion, the according to the ministry’s data, while over 530,000 foreign-invested businesses collectively contribute about CNY2.5 trillion (USD369.3 billion) in taxes annually.

According to the World Investment Report released by the United Nations Conference on Trade and Development earlier this month, China has shown signs of stability in attracting FDI amid a challenging global investment environment.

In the second half of the year, China will deepen pilot programs in areas such as value-added telecoms, biotechnology, foreign-funded hospitals, and vocational training institutions, the ministry said. The country will also speed up revisions to regulations on foreign investors acquiring Chinese firms and implement tax incentives for foreign investors that reinvest profits earned in China, it said.

Additionally, the government will encourage the flow of more FDI into China’s central, western, and northeastern regions, as well as emerging fields such as humanoid robots and high-end shipping services, according to the ministry.

Editor: Tom Litting