Guangdong Province has demonstrated continued strength as a prime destination for foreign investment, showcasing its robust economic resilience in early 2025. Between January and February, the province established 3,484 new foreign-invested enterprises (FIEs), marking a 16.8% increase from the same period in 2024. Actual foreign investment reached 23.31 billion yuan (approximately $3.21 billion), reflecting a 5.9% year-on-year increase.

The Leading Role of the Greater Bay Area

The Guangdong-Hong Kong-Macao Greater Bay Area (GBA), particularly its nine mainland cities, remains the most significant driver of foreign investment. The GBA accounted for 92.4% of Guangdong's total foreign capital inflows during the first two months of 2025, with the region seeing a 6.9% increase in actual foreign investment, totaling 21.55 billion yuan.

Shenzhen, as a major economic powerhouse, remains a standout performer, with 1,388 new foreign-invested companies established in the first two months of 2025, reflecting a remarkable 23.8% increase compared to the same period in 2024. Shenzhen attracted 81.6 billion yuan in foreign investment, a 16% year-on-year rise, contributing to 35% of the province's total foreign capital. Similarly, Guangzhou, with over 50,000 foreign-invested enterprises, remains a crucial global investment hub, seeing 1,040 new foreign-invested companies in the first two months of 2025, a 4% increase, and foreign capital totaling 74.24 billion yuan.

Key Sectors Fueling Growth

Manufacturing continues to lead in foreign investment attraction, with the sector receiving 7.41 billion yuan in actual foreign investment in January and February 2025, a substantial 34.5% growth compared to last year. This represents 31.8% of the province's total foreign investment. The high-tech sector, particularly in Shenzhen, is also experiencing robust growth. Investment in high-tech industries surged by 79.4%, with high-tech services seeing an even more significant jump of 96.3%, making up 31% of Shenzhen's total foreign investment. This growth was primarily driven by the electronics and communication equipment manufacturing sectors, which saw a fivefold increase in investment.

Strategic Policies Driving Investment

Guangdong's government has proactively supported foreign investment with targeted policies. The introduction of new incentive measures in May 2024 has successfully attracted high-quality projects. In the first two months of 2025, seven foreign-invested projects each exceeded $100 million in actual investment, contributing over $1.5 billion to Guangdong's foreign capital inflow.

An exemplary case is Siemens Healthineers, which has invested in an advanced medical equipment R&D and manufacturing facility in Shenzhen. This expansion will make the facility the largest production base for Siemens'MRI systems outside Germany, further enhancing the region's position in the global health-tech supply chain.

Investment from Developed Economies

Guangdong has also seen increased investment from developed economies. In the first two months of 2025, foreign investment from Europe, the US, Japan, and South Korea grew by 52.2%, with EU investment rising by 70.4%. Southeast Asian investments have also surged by 45.2%. These figures underscore Guangdong's strong appeal to developed markets, with the GBA particularly benefiting from international interest.

Government Support and Incentives

The province has introduced several incentives to attract foreign investment, including a new round of foreign investment reward policies. For instance, foreign-invested projects in the six key cities of the Pearl River Delta (Guangzhou, Shenzhen, Zhuhai, Foshan, Dongguan, and Zhongshan) with actual investment exceeding $50 million are eligible for a reward of up to 3% of their foreign capital, depending on the sector.

Additionally, Guangdong has expanded its support for multinational corporations establishing regional headquarters in the province. Over the past few years, 64 regional headquarters have been selected, with further evaluations planned. These efforts are aimed at attracting large-scale, high-quality investments to Guangdong, strengthening its economic dynamism.