China becomes Georgia’s largest investor as FDI falls 23.2%

Foreign direct investment (FDI) in Georgia fell 23.2% in April-June 2026 compared with the same period last year, according to preliminary data from Georgia’s National Statistics Service, Geostat. Investment declined from $610.6 million to $468.8 million.

The main reason for the decrease was a decline in reinvested earnings, or profits generated by companies operating in Georgia that were reinvested in their businesses.

Despite the overall decline, China’s position in Georgia’s economy strengthened sharply. Chinese investment in Georgia stood at a negative figure in the second quarter of 2025, but reached $219.5 million in the same period of 2026.

Chinese investment accounted for approximately half of all FDI entering Georgia during the quarter, making China the country’s largest foreign investor for the first time.

The shift is mainly linked to the acquisition of Liberty Bank by Basisbank, owned by China’s Hualing Group, for approximately $250 million. The deal is considered one of China’s largest investments in Georgia’s financial sector.

The United Kingdom ranked second among investors, followed by the United Arab Emirates. The three countries accounted for more than 80% of foreign investment in Georgia during the quarter.

Financial and insurance activities received the largest share of investment by sector. Real estate and manufacturing were also among the main investment destinations.

China’s growing investment activity comes as relations between Georgia and Beijing deepen. The two sides signed a strategic partnership agreement in 2023, followed by the introduction of visa-free travel and expanding trade ties.

In June 2026, Tbilisi and Beijing upgraded their relations further by declaring a “comprehensive strategic partnership.”

China’s growing economic influence coincides with a period of stagnation in Georgia’s relations with the European Union. Brussels has said the Georgian government’s political course has effectively frozen the country’s EU membership process. The ruling Georgian Dream party has said it will not hold talks on EU membership until 2028.

As Western economic involvement weakens, China’s expanding investment presence in Georgia could help fill a gap in the country’s foreign capital structure.