China's latest trade and investment figures reveal a subtle but decisive shift in where and how global businesses are allocating resources in the country. While total trade growth remains moderate, foreign direct investment into high-tech industries is gathering pace, underscoring the emergence of deep, targeted engagement over broad-based expansion.

Official data released by the General Administration of Customs on July 14 show that China's total goods trade reached RMB 21.79 trillion (US$3.05 trillion)in the first half of 2025, up 2.9%year-on-year. Exports rose by 7.2%, while imports fell 2.7%, extending a pattern of export-led growth amid ongoing domestic adjustment.

Although the overall trade growth rate remains modest, its composition and direction are of immediate relevance to foreign firms operating in supply chains, export financing, and global logistics. The continued strength in outbound shipments—especially from advanced manufacturing and consumer electronics—suggests resilient overseas demand for China-made goods, while the weak import data point to cautious domestic consumption, especially in bulk and intermediary goods.

What stands out more prominently is the direction of capital.

High-Tech Sectors Attracting More Capital

Between January and May, actual use of foreign direct investment (FDI)in high-tech sectorsreached RMB 109.04 billion (US$14.96 billion), according to China's Ministry of Commerce. FDI into aerospace equipment manufacturingrose 74.9%, and chemical pharmaceuticalsgrew 59.2%year-on-year.

For international firms involved in precision engineering, life sciences, or materials innovation, these figures offer a clear signal: regulatory and policy priorities are now aligned with capital-intensive, knowledge-based industries. These are the sectors where local approvals are flowing faster, and where infrastructure, talent, and demand are converging to support deeper investment.

This trend coincides with China's national agenda to build a unified domestic market—a move designed to streamline regional business environments and improve the internal circulation of goods, services, and capital. While the framework is still taking shape, foreign investors with multi-city operations are already evaluating how regulatory simplification could reduce operating friction and accelerate product rollouts.

What Leading Multinationals Are Doing

Multinational companies across industrial technology, specialty materials, and flexible workspace solutions are adapting their China strategies to reflect this changing landscape—less focused on footprint, more on precision and speed.

ABB Group, the Swiss industrial automation leader, launched three new robot modelsin July, manufactured at its US$150 million plant in Shanghai. These robots target automation needs in high-growth sectors such as electronics, healthcare, logistics, and general industry. Over 90% of ABB's robots sold in China are now made locally, and the company expects 80% of its robotics supply chainin China to be domestically sourced by the end of the year.

“As part of our ‘local for local'strategy, we're expanding to serve the evolving demands of China's mid-market robotics segment,” said Marc Segura, President of ABB Robotics.

Eastman Chemical Co., a U.S.-based specialty materials firm, expanded production capacity at its Dalian plantin June by launching two new lines for automotive window films and paint protection products. The expansion supports both domestic demand and regional exports across Asia.

“China's pace of innovation is significantly faster than in many markets, especially in digital behavior,” said Brad Lich, Executive Vice President and Chief Commercial Officer of Eastman. “This keeps our product development teams on a constant cycle of adaptation.”

In the service sector, International Workplace Group (IWG)is pushing deeper into China's second- and third-tier cities, where hybrid work models and rising demand for flexible office formats are reshaping commercial real estate needs. IWG now operates 140 locations across 35 Chinese citiesand has signed agreements for more than 50 new domestic sites, including suburban hubs and commuter towns.

“We're adapting to how hybrid work is evolving in China,” said Marc Descrozaille, CEO of IWG for Asia-Pacific, the Middle East and Africa. “Our expansion strategy is tailored to meet regional demands outside traditional business districts.”

Strategic Implications for Global Businesses

Across these examples, a few shared characteristics are emerging—high localization, operational agility, and sector focus. Foreign businesses expanding in China today are not pursuing scale for its own sake. Instead, they are targeting industries with policy tailwinds, fast-changing demand, and supply chains that can be anchored domestically.

For stakeholders in legal, financial, and regulatory advisory roles, this shift implies stronger demand for cross-provincial compliance harmonization, investment structuring for high-tech operations, and talent mobility planningacross regional centers.

For manufacturers and logistics firms, the sustained strength in exports—alongside weak imports—calls for realignment of inventory, sourcing strategies, and possibly new investment in production-for-exportmodels, especially in industrial clusters with logistics advantages.

For investors assessing entry points or portfolio expansion, the rise in high-tech FDI provides a map of policy priorities. Areas such as robotics, new materials, aerospace components, and pharma manufacturingare receiving both regulatory and commercial validation.

From Footprint to Focus

China in 2025 presents a landscape less defined by headline GDP growth and more by sector-specific potential and execution discipline. The foreign firms gaining traction are those that understand where domestic demand is concentrated, how to localize supply chains quickly, and when to move in sync with regulatory momentum.

The pace may be measured, and the policy environment carefully managed—but for businesses with the right alignment, the direction is increasingly clear.