BEIJING – Foreign direct investment in the Chinese mainland, in actual use, totaled 412.5 billion yuan (about $57.94 billion) in the first five months of 2024, according to data from the Ministry of Commerce.

The amount was 28.2 percent lower than that of the same period last year, the ministry said on its website on Friday.

The scale of foreign investment in actual use is still at a historically high level.

Official, Ministry of Commerce, China

Despite the decline, 21,764 new foreign-invested firms were established across China in the reporting period, an increase of 17.4 percent, the data showed.

"The scale of foreign investment in actual use is still at a historically high level," according to a ministry official, who attributed the decline mainly to a high comparison base last year.

The manufacturing sector attracted 28.4 percent, or 117.1 billion yuan, of the total FDI inflow, up 2.8 percentage points from the same period last year and indicating continued improvement in investment structure.

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FDI inflows into smart consumer equipment manufacturing and professional technical services increased 332.9 percent and 103.1 percent year on year, respectively.

FDI from Germany and Singapore increased 24.2 percent and 16.2 percent year on year, respectively, the ministry said.

"At present, the expectations and confidence of foreign investors are generally stable," the official said, citing survey results from foreign chambers of commerce that show over three-quarters of all US, European and Japanese companies in China plan to continue their business in China.

China has rolled out multiple policies to attract foreign investment this year. In March, the government released an action plan proposing 24 measures, including measures to expand market access, foster a level playing field and facilitate the flow of innovation factors.

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With these new policies and measures taking effect, China's investment environment will become even more favorable, and foreign investors will find that the "next China" is still China, said the official.