Study Confirms Importance of Foreign Direct Investment in California
A study released this month underscores the importance of foreign direct investment to the California economy.
Published by the World Trade Center Los Angeles, Foreign Direct Investment in California 2025 expands the geographical analysis of previous versions beyond the traditional regions examined – Southern California, Bay Area, Greater California.
This year, the report also breaks down data according to the 13 foreign direct investment (FDI) destination regions in the California Jobs First Economic Blueprint launched in February 2024.
Jobs and Innovation
As Dee Dee Myers, director of the Governor’s Office of Business and Economic Development, notes in the foreword to the report: “International businesses are an essential driver of jobs and innovation in the United States, and California is proud to be the number one state in the country for jobs supported by foreign-owned companies.”
The World Trade Center Los Angeles highlights California’s rise to the fourth largest economy in the world in 2025 as foreign investment continues to flow into the state.
This year, 18,963 foreign-owned enterprises (FOEs) accounted for 814,102 jobs across the state – an increase of 14,018 jobs from 2024 – paying an estimated $89 billion in wages to Californians.
Top Employers
The United Kingdom remains California’s top source of FOE employment in 2025, supporting 130,628 jobs across 2,215 establishments. This marks a net gain of more than 17,000 jobs from the previous year, the largest year-over-year increase among all source countries and regions. U.K. investment is concentrated in high-wage, service-driven industries, with more than 43,000 jobs in professional and business services and 26,000 in manufacturing.
Japan continues to rank second among FOEs with 127,138 jobs and remains the state leader in FOE establishments with 3,391. Japan added more than 14,000 jobs in 2025, but its expansion remains concentrated in traditional industries, such as manufacturing and wholesale trade, which together account for more than half of Japanese FOE employment.
Although Japan’s overall footprint is broader, the United Kingdom’s growth in service-based sectors reflects a shift in the composition of foreign investment toward higher-value and knowledge-based activities.
The top 10 ranking includes the United Kingdom, Japan, France, Canada, Germany, Switzerland, Netherlands, Ireland, China, and Taiwan.
The FDI report was made possible through the support of the Port of Long Beach and the Center for International Business Education (CIBE) of Loyola Marymount University.
Staff Contact: Susanne T. Stirling