BBC Chinese Edition recently reported based on data from China’s National Bureau of Statistics that in the first half of the year, the growth rate of fixed asset investment declined 2.8 percent year-over-year. This is also a decline from the 3.7 percent year-to-date figure for May. From the beginning of this year, China’s foreign direct investment (FDI) is also down 13.6 percent, year-over-year, continuing to shrink.
Uncertainty surrounding tariffs and geopolitical developments continued to weigh on fixed asset investment as businesses delayed new investments until there was greater clarity. With further tariff-related uncertainty likely to again emerge in August, the Chinese market may see this weak investment demand continue in the coming months.
According to the Bureau of Statistics, government-led fixed asset investment continued to outperform private investment, growing five percent year-to-date, while private investment declined by 0.6 percent year-to-date, turning negative for the first time this year and hitting the lowest level since 2023.
Source: BBC Chinese, July 15, 2025
https://www.bbc.com/zhongwen/articles/ce8zp58vq69o/simp