As the 15th Five-Year Plan begins, China's stable economic fundamentals, continuously improving business environment, and accelerating release of innovation momentum continue to attract foreign enterprises to increase capital and expand production. China supports multinational corporations in investing, establishing businesses, and developing healthily within its borders, working together to create a future of win-win cooperation. Representatives from foreign companies operating in China interviewed believe the Chinese market demonstrates clear growth potential and stability, with new demands rapidly emerging, making it an "imperative location" for multinationals planning their future.
Resilient Economy: The Allure of a Mega-Scale Market
From January to May this year, China's production and supply have shown steady growth, employment and prices have remained generally stable, the resilience of foreign trade has been consistently demonstrated, and new growth drivers have expanded. The national economy has maintained a generally stable, increasingly innovative, and optimized development trend. With the certainty provided by its high-quality development, China offers the world valuable stability, attracting foreign enterprises to persistently increase their investments and local presence.
In the first half of the year, Schneider Electric completed the expansion of its Beijing Yizhuang campus, which was recognized as a "Sustainability Lighthouse" by the World Economic Forum, while its new Xiamen industrial park is set to commence operations soon.
"As a crucial engine for global economic growth, China's mega-scale market and comprehensive industrial system support each other, providing Schneider Electric with vast development space and a solid industrial chain foundation," said Yin Zheng, Executive Vice President of Schneider Electric and President of its China & East Asia Operations. On one hand, the immense Chinese market contains rich application scenarios and robust innovation demand, especially the deep integration of energy transition and AI development, prompting companies to continuously increase R&D investment and accelerate technological innovation. On the other hand, the complete industrial system provides an efficiently coordinated supply chain, supporting companies in shortening the cycle from R&D to delivery and rapidly bringing innovative products to market.
American power semiconductor manufacturer ON Semiconductor announced the establishment of its Greater China headquarters in Shanghai to strengthen local decision-making and innovation capabilities. It plans to invest an additional approximately $50 million in China over the next three years for R&D, manufacturing collaboration, and local ecosystem development. Headquartered in Finland, system supplier for electronics manufacturing and communications, Scanfil (Suzhou) Co., Ltd., held a groundbreaking ceremony for its second-phase expansion project. The plan involves constructing approximately 20,000 square meters of new factory space, integrating modernization, intelligence, and sustainability.
In the first five months of this year, over 25,000 new foreign-invested enterprises were established nationwide, a year-on-year increase of 5.3%. Nearly 4,000 foreign-invested companies increased their investments in China, with the pace of capital increase, investment density, and project implementation efficiency all remaining high.
"Facing multifaceted challenges, China's economy has demonstrated strong resilience," said Zou Jun, Chairman of KPMG China. Recently, China's economy has released impressive "report cards" for January-May across multiple sectors including infrastructure, foreign trade, and technological innovation. "Increasing investment in China" has become a broad consensus among market participants. This not only reflects the market's recognition of China's economic resilience but also provides a crucial anchor for global enterprises to achieve prosperous development amidst uncertainty.
"In today's rapidly changing world, stability and predictability are significant advantages of China," said Christian Rommel, Global Executive Vice President of Bayer's Pharmaceuticals Division. China's advantages in foresight and innovation are becoming increasingly prominent. Bayer regards China as a core strategic market and important partner for global pharmaceutical innovation, continuously building a collaborative pharmaceutical innovation ecosystem integrating "production, academia, research, innovation, and investment."
New Momentum: Transitioning from "World Factory" to "Innovation Hub"
In June this year, China's Purchasing Managers' Index for high-tech manufacturing stood at 53.5%, significantly higher than the overall manufacturing PMI, indicating sustained positive development in advanced manufacturing and a strengthening leading role. China's progress in intelligentization, green transformation, and integration continues, with new growth drivers steadily expanding. The upgrading of the manufacturing sector, the continuous transformation of old and new growth drivers, and the accelerated enhancement of technological innovation capabilities... From "world factory" to "world market" and "innovation hub," China's competitiveness continues to leap forward.
In the first half of 2026, Tesla Motors (TSLA) delivered 838,000 electric vehicles globally, with over half originating from its Shanghai Gigafactory. Tao Lin, Vice President of Tesla, stated that the Shanghai Gigafactory is a crucial production base and export center for Tesla globally, with exported models consistently supplying dozens of markets across Asia-Pacific and Europe. Models led by the Chinese R&D team are not only highly popular in the domestic market but have also begun deliveries in multiple markets including South Korea, Singapore, Thailand, and Australia, facing supply shortages.
China's market demands iterate rapidly and offer rich application scenarios, and the capabilities of local engineering and innovation teams are increasingly feeding back into global operations. In the recently released "2026 World Competitiveness Ranking" by IMD, China's ranking rose to 12th place. International business figures widely believe that China's unique advantages in scale and rapid innovation will be important underpinnings for "China Opportunity 2.0." While China offers greater "market dividends" to the world, it is also contributing an increasing share of "innovation dividends."
In March this year, Philips launched a new intelligent simulation positioning CT scanner. Developed by its Shenyang Innovation Center based on Chinese clinical needs and manufactured at its Suzhou production base, the product achieved its global debut in China and will gradually serve global markets. Currently, Philips has established five innovation centers and five manufacturing bases in China, forming an end-to-end innovation system covering R&D, manufacturing, supply chain, and services.
"China is accelerating the construction of a globally competitive innovation system. The rich clinical scenarios, open innovation ecosystem, complete industrial chain, and talent system provide vast space for multinational enterprises to conduct local innovation and drive global innovation," said Liu Ling, Member of the Philips Global Executive Committee and President of Greater China. The company will continue to deepen its roots in China, leveraging the open innovation ecosystem to accelerate the global reach of more innovations originating from China.
In the first quarter of 2026, L'Oréal China achieved mid-to-high single-digit growth, a noticeable acceleration compared to last year. "Whether in terms of scale, growth rate, or market vitality, the Chinese consumer market stands out," said Vincent Boinay, President of L'Oréal North Asia and CEO of L'Oréal China. During the 15th Five-Year Plan period, the Chinese market offers foreign enterprises not just market dividends, but opportunities driven by consumption upgrading, innovation ecosystems, digital empowerment, and open cooperation. "L'Oréal has always maintained firm confidence and long-term commitment to deepening its presence in China, believing that investing in China is investing in the future."
"China is not only a global manufacturing center but also possesses fertile ground and conditions for innovation, making it one of the engines for global medical technology innovation. GE HealthCare adheres to an innovation path that starts with Chinese needs and deeply co-creates with the global R&D system," said Song Weiqun, Global Executive Vice President of GE HealthCare and President & CEO of Greater China. At the end of last year, the GE HealthCare Magnetic Resonance Eastern Hemisphere Headquarters R&D Innovation Center, located within its Tianjin base, officially became operational. Together with previously established centers in Beijing, Shanghai, and Wuxi, Jiangsu, they form four key innovation pillars, constructing a comprehensive local innovation system covering all product lines and the entire chain in China.
Substantial Potential: Open Policy Dividends Continue to Be Unleashed
The 2026 "China Business Environment Survey" released by the US-China Business Council shows that 92% of respondent enterprises reported profitability in their China operations in 2025. The "2026 Business Confidence Survey" released by the European Union Chamber of Commerce in China indicates that 75% of enterprises believe their production efficiency in China is higher than in other regions globally... China remains steadfast in advancing high-level opening-up, committed to sharing cutting-edge technologies and achievements with all countries, enhancing resilience through open cooperation, and securing the future through common development.
"China's steadily growing economy, innovation-driven development model, huge market potential, and open business environment collectively shape a dynamic, high-potential market with diverse demands, further strengthening our confidence in long-term commitment," said Chen Jiayuan, CEO of Louis Dreyfus Company North Asia. China is not only a strategic growth market for Louis Dreyfus Company but also a frontline for the company's technological innovation and advanced production. Louis Dreyfus looks forward to continuing to seize development opportunities in the Chinese market, persistently strengthening local R&D, production processing, and supply chain capabilities, and working with upstream and downstream partners to jointly enhance the connectivity, stability, and long-term resilience of China's and the global agricultural and food supply chains.
In June this year, the "Action Plan for Stabilizing and Improving Foreign Investment Utilization" was released. Its 15 measures outline a clear roadmap for China to attract foreign investment, stabilize existing stock, expand incremental investment, and improve quality. "The Action Plan encourages and supports foreign-invested enterprises in deepening their long-term commitment to the Chinese market, allowing them to invest with confidence and operate with peace of mind, reflecting China's unwavering determination to expand openness," said Fang Mingjie, President of Thermo Fisher Scientific China. Over the past five years, Thermo Fisher has cumulatively invested nearly 1 billion RMB in R&D and production in China, with local product line investments covering over 30 core products, achieving local manufacturing for its chromatography platform and spectroscopy product lines. Looking towards the "15th Five-Year Plan" period, Thermo Fisher will further deepen its local layout and continue to drive technological innovation in the fields of biopharmaceuticals, academic research, healthcare, and application markets.
"The Chinese market is an 'imperative choice.' Whether it's the mega-scale market, the complete and resilient supply chain, or the continuously released innovation momentum, it's difficult to find a 'second China,'" said Tao Lin. Tesla Motors (TSLA) is willing to continue taking root and deepening its presence in China, aiming to make Shanghai a global benchmark base for the synergy between electric vehicles and energy storage, and achieve long-term mutual benefit and win-win results together with Chinese partners.
Comments