China's foreign direct investment (FDI) equity stock reached 26.8 trillion yuan (about 3.98 trillion U.S. dollars) in 2025, ranking second globally and marking six consecutive years of growth, the Ministry of Commerce said Thursday, citing the latest annual reports from foreign-invested enterprises.

A total of 461,000 foreign-invested enterprises filed annual reports last year, up 5.7 percent from 2024, according to data compiled by the ministry and other government departments.

China's vast market offers foreign businesses opportunities to generate tangible returns, ministry spokesperson He Yadong told a press conference, adding that China welcomes foreign companies seeking to expand their presence in the country and share in its development opportunities.

The reporting companies posted an average profit margin of 8.7 percent in 2025. In the manufacturing sector, their profit margin was 2.2 percentage points higher than that of China's major industrial enterprises, the data showed.

Foreign-invested enterprises accounted for one-third of China's total goods trade and one-seventh of the country's tax revenue in 2025. They also provided an average of more than 30 million jobs annually over the past five years, the ministry said.

High-tech industries have become a bright spot for foreign investment in China. FDI in the sector rose 35.1 percent year on year to 200.26 billion yuan in the first eight months of this year, official data showed.

China has stepped up efforts to stabilize foreign investment and direct more capital into advanced and high-value-added sectors. A 15-measure action plan unveiled in June this year aims to expand market access, streamline investment procedures, strengthen investment promotion and improve services for foreign investors.

A new version of the Catalog of Encouraged Industries for Foreign Investment also took effect on Feb. 1, encouraging foreign investment in advanced manufacturing, modern services, high-tech industries, energy conservation and environmental protection, as well as in China's central, western and northeastern regions.