More foreign companies are registering in China, but they are bringing in less money. In the first five months of 2026, newly established foreign-invested firms rose 5.3% year on year to 25,297, while actual FDI inflows dropped 8.6% to CNY 327.29 billion (USD 48.03 billion).
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Three prominent advisers are publicly pressing Beijing to accelerate local government debt resolution and increase central fiscal spending. Fixed-asset investment fell 7.2% year-on-year in the first eight months of 2026, and economists argue China's unusually low domestic price levels — CPI at 0.
Industrial profits at China's above-scale enterprises rose 18.8% year-on-year in January–May 2026, reaching 3.14 trillion yuan. The electronics sector alone accounted for 43.1% of that growth, with profits more than doubling at +103.9%.
Shanghai customs data show ASEAN trade reached CNY70.1 billion in May, a 26% year-on-year increase that pushed the bloc narrowly ahead of the EU. Vietnam alone recorded a 110% surge, making it the primary driver of the shift.
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