Demystifying Chinese investment in Australia

According to recent data from UN Trade and Development (UNCTAD), global Foreign Direct Investment (FDI) in 2024 declined by 8%, excluding financial flows through European conduit economies.  

Regional FDI tells a diverging story. After adjusting for the conduit economies effect, UNCTAD notes a steep 45% decline in FDI flows into continental European economies (Germany, Poland, Italy, Spain, and France), contrasting with a 13% increase in North America. The United States was the leading recipient of global FDI, registering a 10% increase in FDI mostly driven by large M&A deals. Large M&A acquisitions were also completed in Italy, Ireland, and Germany.

Developing economies presented a mixed picture, with overall FDI falling by 2% . Several major emerging economies—including Brazil, China, India, Indonesia, and Mexico— experienced declines in project numbers that far exceeded the global average. For example, FDI flows into China declined 29% in 2024.

Besides China’s Ministry of Commerce data, project-based data from the Rhodium Group shows that Sub-Saharan Africa countries experienced their highest growth in Chinese ODI in 2024, while Chinese ODI into North America continued to decline.