China’s overseas investment hits record US$214 billion. Why are US-bound flows plunging?

AI Summary

China's outbound direct investment reached a record $214 billion last year despite a sharp decline in flows to the United States due to geopolitical and regulatory challenges. China now ranks as the world's second-largest source of global capital after the US.

China’s outbound direct investment reached a record high of US$214 billion last year, even as investment in the United States plunged to its lowest level in more than a decade amid growing geopolitical and regulatory uncertainty, latest official data showed. Outbound direct investment was up 11.1 per cent in 2025 compared to the previous year, making China the world’s second-largest source of global capital, behind only the US and ranking ahead of Japan, according to an annual report jointly...