China Records 7% Growth in New Foreign Enterprises During First Half of 2026

China saw 35,000 newly established foreign-invested enterprises in the first half of 2026, a 7.0% increase year-on-year, according to data released by the State Administration for Market Regulation. Growth was propelled by a dual dynamic of strong gains in major exporting hubs like Hainan and border regions like Heilongjiang. While new business registrations from the United States, Britain, and Japan contracted, inflows from Belt and Road partner countries, Arab states, and African Union nations expanded rapidly, alongside strong foreign interest in healthcare, retail, and hospitality services.

The structural shift in China's foreign enterprise registrations illustrates a notable realignment in its external economic ties. As geopolitical friction and de-risking policies weigh on corporate entries from traditional developed markets, surging momentum from emerging economies and Global South partners is helping China maintain aggregate baseline growth in foreign-invested entities.

China registered approximately 35,000 newly established foreign-invested enterprises in the first half of 2026, marking a 7.0% increase compared to the same period last year, according to figures released by the State Administration for Market Regulation. Regional distribution revealed a dual-track expansion led by traditional coastal export powerhouses and northern and southern border regions. Among major exporting provinces, the island province of Hainan posted the fastest growth at 38.6%, followed by Shandong at 15.2%, Guangdong at 8.1%, and Jiangsu at 6.8%. Meanwhile, border regions recorded substantial percentage gains in new foreign business formations, led by Heilongjiang with a 79.5% surge, Inner Mongolia at 29.1%, Guangxi at 16.6%, and Jilin at 12.0%. The official data highlighted a structural divergence in source countries. Combined registrations from Belt and Road Initiative partner nations, Arab states, and African Union members reached 11,000 enterprises in the first six months. Year-on-year growth stood at 19.3% for Belt and Road partners, 20.6% for Arab countries, and 42.8% for African Union member states. These gains counterbalanced sharp drops in new enterprise formations from several major developed economies. Newly established firms backed by investors from the United States fell by 10.7%, while registrations from the United Kingdom dropped 21.4% and Japanese-backed entities declined by 34.9%. In terms of target industries, consumer-oriented sectors emerged as primary drivers for new foreign market entrants. Registrations in health and social work expanded by 27.1% year-on-year, while the wholesale and retail sector grew by 11.9% and accommodation and catering rose by 11.7%, reflecting ongoing commercial interest in tapping China's domestic consumer base.