{"id":3533,"date":"2025-07-25T21:24:37","date_gmt":"2025-07-25T21:24:37","guid":{"rendered":"https:\/\/youarepakistan.com.pk\/?p=3533"},"modified":"2025-07-25T21:24:37","modified_gmt":"2025-07-25T21:24:37","slug":"multinationals-continue-to-invest-in-china","status":"publish","type":"post","link":"https:\/\/youarepakistan.com.pk\/index.php\/2025\/07\/25\/multinationals-continue-to-invest-in-china\/","title":{"rendered":"Multinationals continue to invest in China"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">By Luo Shanshan, Wang Pei, People&#8217;s Daily<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As global supply chains undergo a new round of restructuring, <a href=\"https:\/\/thepublicpurview.com\/category\/china-insight\/\"><u>China<\/u><\/a>&nbsp;is emerging as an increasingly attractive destination for foreign investment. A recent report from the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce highlighted how the country&#8217;s comprehensive, multi-dimensional strategic advantages and expanding market potential are reinforcing its appeal to multinational corporations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The convergence of diverse <a href=\"https:\/\/thepublicpurview.com\"><u>opportunities<\/u><\/a>&nbsp;is enabling the Chinese market to deliver greater long-term value, fostering both sustained capital appreciation and enhanced global competitiveness. As of the end of 2024, foreign investors had invested and established more than 1.23 million&nbsp;enterprises, with a cumulative actual utilization of foreign capital of&nbsp;20.6 trillion yuan ($2.87 trillion).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On June 25, Airbus marked four decades of partnership with China. Over the years, China has become Airbus&#8217; biggest single-country market for commercial aircraft. Today, the partnership spans the entire aircraft lifecycle &#8211; from design and manufacturing to operational support and recycling after retirement. According to Airbus&#8217; 2025 global market forecast, China will become the world&#8217;s largest air transport market in the next 20 years, requiring 9,570 new aircraft, accounting for nearly one-fourth of total demand globally.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On June 18, German electric giant Phoenix Contact, another multinational with a long-standing presence in China, broke ground on a mega-factory&nbsp;in Nanjing, east China&#8217;s Jiangsu province, with a total investment of 1 billion yuan. Once completed, the facility will triple its&nbsp;production capacity within five years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A company representative noted that China&#8217;s market scale and sophistication&nbsp;provides significant growth potential, while the rapid advancement of sectors like new energy and intelligent manufacturing aligns closely with the company&#8217;s business focus.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Han Jian,&nbsp;a professor at Nanjing University&#8217;s business school, observed that on the demand side, China&#8217;s large and multi-tiered market presents abundant commercial opportunities for foreign businesses. On the supply side, the country boasts a complete industrial system and strong manufacturing capabilities, having built the world&#8217;s largest high-speed railway and expressway networks, as well as world-class port clusters and highly efficient logistics systems. This helps multinationals lower costs and enhance operational efficiency, Han noted.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A stable policy framework and an increasingly open environment further strengthen China&#8217;s investment profile.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This confidence is reflected in multinationals&#8217; consistent investment patterns, exemplified by German consumer goods leader Henkel: the company allocated&nbsp;over 500 million yuan in setting up an innovation center in Shanghai&nbsp;in 2021, launched a new adhesive manufacturing facility in the Yantai Huang-Bohai New Area in east China&#8217;s Shandong province&nbsp;in 2023, and inaugurated its&nbsp;Cosmetics Brands China Factory&nbsp;in Taicang, Jiangsu province, in March this year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;The current wave of investment is driven by market dynamics, strong government support, and continuous improvements in the business environment,&#8221; said Yu Jiang, head of government relations and public affairs at Henkel (China).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;The Chinese government has been actively advancing opening-up. The negative list for foreign investment is getting shorter every year, and in 2024, restrictions in the manufacturing sector were completely lifted. A range of new policies have also been introduced to attract foreign investment,&#8221; said Yu.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Experts affirm&nbsp;that China&#8217;s long-standing political and social stability, combined&nbsp;with consistent policy implementation, cultivates&nbsp;a reliable and predictable operating climate&nbsp;for foreign businesses. Notably, China&#8217;s well-structured approach to both voluntary and unilateral opening-up has created a forward-looking and flexible space for multinational development.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Many foreign companies have highlighted China&#8217;s dynamic application scenarios and innovation momentum as key reasons for choosing the country as a launchpad for new business models and launching cutting-edge technologies. Today, China boasts the world&#8217;s largest innovation ecosystem for scenario-based applications.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After 38 years of development in the Chinese market, Schneider Electric, a global leader in energy management and industrial automation, has made China its second-largest market globally and one of its most critical supply chain bases.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to Yin Zheng, executive vice president of China and East Asia Operations at Schneider Electric, the company has established five research and development (R&amp;D) facilities&nbsp;in cities such as Beijing and Shanghai. Since 2019, its R&amp;D spending in China has grown at a compound annual rate of more than 18 percent.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Japanese electronics maker Seiko Epson Corp&nbsp;has followed a similar strategy, combining technological expertise&nbsp;with localization. &#8220;Through open collaboration, we&#8217;ve developed a wide range of popular, China-specific solutions,&#8221; said the president of Epson (China) Co., Ltd.. &#8220;In response to the emerging challenges of the AI era, we are actively integrating into China&#8217;s development trajectory and innovation ecosystem.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to the report released by the Chinese Academy of International Trade and Economic Cooperation, foreign-invested enterprises have been rapidly expanding their R&amp;D presence in China in recent years. As of May 2025, Shanghai was home to 603 foreign-funded R&amp;D centers. In 2024 alone, Beijing approved more than 110 new foreign-funded R&amp;D centers, bringing the city&#8217;s total to 221 &#8211; more than doubling within just a short span of time.<\/p>\n","protected":false},"excerpt":{"rendered":"<p class=\"text-justify mb-2\" >By Luo Shanshan, Wang Pei, People&#8217;s Daily As global supply chains undergo a new round of restructuring, China&nbsp;is emerging as an increasingly attractive destination for foreign investment. A recent report from the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":3534,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[433],"tags":[],"class_list":["post-3533","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-world"],"_links":{"self":[{"href":"https:\/\/youarepakistan.com.pk\/index.php\/wp-json\/wp\/v2\/posts\/3533","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/youarepakistan.com.pk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/youarepakistan.com.pk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/youarepakistan.com.pk\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/youarepakistan.com.pk\/index.php\/wp-json\/wp\/v2\/comments?post=3533"}],"version-history":[{"count":1,"href":"https:\/\/youarepakistan.com.pk\/index.php\/wp-json\/wp\/v2\/posts\/3533\/revisions"}],"predecessor-version":[{"id":3535,"href":"https:\/\/youarepakistan.com.pk\/index.php\/wp-json\/wp\/v2\/posts\/3533\/revisions\/3535"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/youarepakistan.com.pk\/index.php\/wp-json\/wp\/v2\/media\/3534"}],"wp:attachment":[{"href":"https:\/\/youarepakistan.com.pk\/index.php\/wp-json\/wp\/v2\/media?parent=3533"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/youarepakistan.com.pk\/index.php\/wp-json\/wp\/v2\/categories?post=3533"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/youarepakistan.com.pk\/index.php\/wp-json\/wp\/v2\/tags?post=3533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}