US companies increased their investment in China before the two countries’ leaders met earlier this month, according to new data released by Beijing

Actually utilised foreign direct investment (FDI) from American firms rose 24.5 per cent year on year in the first four months of the year, the Ministry of Commerce said on Saturday. The figure was reached by including inflows through third regions, such as free trade ports, it added.

Other FDI sources that recorded significant growth were Luxembourg, up 110.3 per cent, Switzerland, up 60.8 per cent, and France, up 58.3 per cent.

No figure was given for the actual amounts invested.

US investment in China is widely believed to have been affected by bilateral trade tensions over the past two years, while Chinese investment in the US has also plunged amid tighter scrutiny on national security grounds.

The overall flow of FDI into China in the first four months of the year declined by 10.3 per cent year on year to 287.7 billion yuan (US$42.4 billion), with a year-on-year fall of 7.3 per cent recorded last month.

“Traditional manufacturing sectors are already close to saturation, while areas linked to advanced productive forces are attracting more foreign capital,” said He Weiwen, a senior fellow at the Centre for China and Globalisation.