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Saturday, Oct 31, 2026

Multinational Corporations Increase Investment in China Amid Economic Recovery

Multinational Corporations Increase Investment in China Amid Economic Recovery

Global firms expand their operations in China, driven by government initiatives and growing domestic consumption.
Several multinational corporations across diverse sectors are intensifying their investment in China's high-tech and supply chain markets, motivated by the Chinese government's proactive economic policies.

Executives from leading companies such as Siemens AG, Tapestry Inc., and Takeda Pharmaceutical Co. voiced their commitments during the China Development Forum 2025 held in Beijing in March.

The Chinese government has implemented measures aimed at fostering domestic demand, promoting emerging industries, and enhancing international cooperation to reinforce foreign business confidence in its market amid a backdrop of rising global trade protectionism and geopolitical tensions.

Mercedes-Benz, a prominent automotive group from Germany, plans to commence production of its long-wheelbase electric CLA model in China, with additional launches of the long-wheelbase GLE SUV and a new electric van scheduled for the coming years.

Ola Kaellenius, the chairman of the board of management at Mercedes-Benz, emphasized the substantial advancements the company has made in research and development in China, benefitting from local innovation centers and a workforce skilled in digitalization and autonomous driving technologies.

Kaellenius noted a significant interdependence between China and the European Union, where both parties seek to safeguard their domestic markets while benefiting from free trade.

Joanne Crevoiserat, CEO of Tapestry, highlighted China's burgeoning focus on domestic consumption, which has encouraged global companies to invest within the country.

The luxury goods firm, which includes well-known brands such as Coach and Kate Spade, aims to open 100 stores in China by the end of this year as part of its ongoing expansion strategy.

Crevoiserat also remarked on the importance of digital investments in adapting to the tech-savvy Chinese consumer market, reinforcing their omnichannel retail strategies.

Takeda Pharmaceutical Co. is also aligning its investments with China’s innovation landscape.

The company recently established a China innovation center in Chengdu aimed at harnessing advanced technologies such as big data and artificial intelligence to improve healthcare solutions.

Christophe Weber, the company’s president and CEO, pointed out the importance of such investments in shaping the future of healthcare in the region.

In its Government Work Report for 2025, China outlined intentions to further open various sectors, including internet and telecommunications, to foreign investment in a regulated manner.

This includes enhancing collaboration along industrial supply chains and ensuring national treatment for foreign-funded enterprises.

Sang Baichuan, dean of the University of International Business and Economics, underscored the stability of China's political and economic environment, particularly in contrast to other countries, which Aids in attracting foreign investments.

He pointed out that China’s commitment to an open economy and innovative capabilities has led to a shift in foreign investment strategies from merely manufacturing to collaborative research and development.

Siemens AG's president and CEO, Roland Busch, noted that high-quality growth is now a key driver of China's economic transformation, evidenced by its rapid developments in artificial intelligence.

New quality productive forces, introduced in 2023, signify advancements in productivity that extend beyond traditional economic growth practices.

State-owned enterprises in China, such as State Grid Corp and China Mobile, are also adopting AI technologies to enhance efficiency and reduce operational costs.

Recent data revealed that over 7,500 new foreign-invested enterprises were established in China within the first two months of the year, marking a year-on-year increase of 5.8%.

Foreign investments from countries like the United Kingdom, Germany, and South Korea saw significant surges.

During meetings with US business leaders, including Apple’s CEO Tim Cook, Chinese Commerce Minister Wang Wentao affirmed that China’s economy continues to strengthen despite global uncertainties.

He reiterated the benefits of trade cooperation between the US and China while noting the pitfalls of protectionism and economic decoupling.

Miguel Lopez, CEO of Thyssenkrupp AG, recognized China not only as a major market but also as a hub of comprehensive industrial supply chains.

He stated the company’s intent to enhance supply chain management in China, which would benefit both local operations and global markets.

Danone’s CEO, Antoine de Saint-Affrique, expressed that a flourishing Chinese economy contributes positively to global economic growth, promoting shared prosperity and peace.

From January to February, foreign-invested enterprises reported a significant increase in export value, reaching approximately 1.08 trillion yuan ($148.9 billion), representing a 6.9% increase year-on-year, according to data from the General Administration of Customs.
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