Basic Materials and Autos Draw Chinese Capital: Q2 2025 Update
China’s outbound FDI momentum remained elevated in Q2 2025, making the first half of the year the strongest since 2020. The basic materials sector led the surge, recording its highest level of announced investment since the onset of the COVID-19 pand
Investment momentum
Updated data from the China Cross-Border Monitor (CBM) shows 135 major FDI transactions by Chinese companies in Q2 2025 totaling an estimated $27.1 billion. The first six months of 2025 mark the strongest half-year for Chinese FDI since the onset of COVID-19.
Greenfield investment remained the dominant mode of entry for Chinese outbound investment, totaling $23.1 billion and accounting for 85% of total investment. Mega transactions over $1 billion account for 58% of the total investment. The largest project was a $7 billion investment from China’s Hunan Sunwalk Technology Group in a titanium extraction and processing facility in Malawi, but there are doubts about its feasibility (see below).
New M&A transactions by Chinese firms totaled $4.0 billion, falling by 24% compared to the previous quarter and continuing a slowdown since Q4 2024. In contrast to Q1 2025, no billion-dollar acquisitions were announced in Q2. In Singapore, Zhejiang Longsheng Group completed a $696 million transaction to take full ownership of chemical manufacturer DyStar. China’s CMOC Group announced it would acquire Lumina Gold in a transaction valued at $421 million.
Basic Materials and Autos Draw Chinese Capital: Q2 2025 Update
China’s outbound FDI momentum remained elevated in Q2 2025, making the first half of the year the strongest since 2020. The basic materials sector led the surge, recording its highest level of announced investment since the onset of the COVID-19 pandemic.
Read on the China Cross-Border Monitor