Greenfield investment to drive FDI

Greenfield investment, a category of foreign direct investment wherein a company constructs new facilities and other assets in a foreign market, will replace mergers and acquisitions to become Chinese companies' most sought-after outbound approach amid their continued global expansion steps, according to a think tank report.

Compiled by the CF40 Institute — the research arm of the China Finance 40 Forum — "China's Economy toward a New Paradigm" was released on Tuesday as part of the Bund Summit 2026.

While going global will continue to be a major development trajectory for Chinese firms, its form will evolve from the traditional emphasis on goods exports to overseas investment, localized production and the establishment of supply chains abroad.