China’s Global Investment in 2024

Newly announced overseas investment by Chinese companies dropped slightly in 2024 as new investments in battery manufacturing slowed sharply. However, completed investment trended up as Chinese companies moved ahead with capital intensive greenfield projects in manufacturing and extractive industries. New investment became more concentrated, with automotives, energy, and minerals and metals accounting for close to 80% of announced transaction value. Chinese investors continued to move away from North America and Europe with Asia as leading recipient and strong growth of new investment in Africa and the Middle East.

New battery investments fall, but completed investment rebounds

The value of newly announced Chinese FDI fell 10% in 2024. Most of this decline was driven by a sharp reduction of newly announced projects in the automotive sector, particularly in batteries, where investment value fell 70% compared to the 2022-2023 average. Despite this slowdown, 2024 saw the second highest newly announced overseas investment since 2020.

Completed FDI, on the other hand, was back to pre-COVID levels: In 2024, completed investment by Chinese companies totaled around $58 billion, the first year-on-year increase since 2017. Greenfield investments had already started recovering in 2023, while M&A saw its first increase since 2017, rising from $10.1 billion to $18.9 billion in 2024.