This move is a clear sign of the international community's confidence in China's investment environment. "China is a good country to put your investments. It's safe. Their workforce is diligent and intelligent," a comment on Facebook read.

Aegilon (Beijing), which specializes in sourcing high-quality Chinese mobile phone accessories and agricultural car parts at competitive prices to sell in the Egyptian market, has chosen to establish itself in Yufa Town in Daxing. By leveraging China's manufacturing advantages and its sophisticated supply chain infrastructure, the company aims to meet the growing demand for mobile accessories in Egypt. Aegilon is not an isolated case; an increasing number of foreign enterprises are being drawn to China and are eager to share in the country's development opportunities.

Economic growth 

Despite the slow recovery of the global economy, intensifying geopolitical tensions, and persistently weak foreign direct investment (FDI), China has steadily advanced high-level opening up. The construction of a modern industrial system has also progressed, and the overall economy is experiencing an upward trend.

China has ramped up efforts to attract and stabilize foreign investment. In 2024, the government enhanced support services for foreign enterprises, held regular roundtable discussions, launched pilot programs in sectors including telecommunications and healthcare, and fully removed market entry restrictions in manufacturing, according to an article written by Wang Wentao, Minister of Commerce (MOFCOM), published in newspaper People's Daily in January. Official data show that last year, China welcomed 59,000 new foreign-invested enterprises, a 9.9-percent increase, and attracted FDI worth 826.3 billion yuan ($113.7 billion), with hi-tech manufacturing accounting for 11.7 percent of the total.

China's growing appeal to foreign investors can be attributed to a combination of favorable macroeconomic conditions, a robust domestic market, and a strong emphasis on innovation—all of which have contributed to an increasingly attractive investment environment.

The country's macroeconomic performance has been one of the key factors driving foreign investment. In 2024, China's GDP reached an impressive 134.9 trillion yuan ($18.6 trillion), growing 5 percent year on year. Meanwhile, the national urban unemployment rate averaged 5.1 percent. These positive economic indicators reflect the country's resilience and stability, offering a reliable foundation for foreign businesses looking to invest.

In addition to macroeconomic stability, China's domestic market plays a key role in fostering investor confidence. The nation's commitment to expanding domestic demand has unlocked considerable growth potential. According to the data of MOFCOM, in 2024, retail sales of consumer goods surged to 48.8 trillion yuan ($6.7 trillion), growing by 3.5 percent. This expansion of domestic demand has become a vital engine driving economic growth, further boosting China's attractiveness as a destination for investment.

Another crucial factor contributing to China's appeal is its focus on innovation as a key driver of economic growth. In recent years, the country has made substantial investments in research and development (R&D), resulting in impressive technological advancements. The 2024 Report on Foreign Investment in China, released by the MOFCOM, disclosed that, in that year, China's R&D expenditure reached 3.33 trillion yuan ($457 billion), an 8.1-percent increase from the previous year, accounting for 2.64 percent of GDP. These efforts have enhanced China's technological capabilities.

The continued optimization of China's business environment and its stable macroeconomic conditions have boosted foreign investor confidence.

Various surveys indicate that foreign enterprises remain optimistic about China's market opportunities. The 2025 China Business Climate Survey Report released by the American Chamber of Commerce in China revealed that 48 percent of companies surveyed rank China among their top-three global investment priorities, including 10 percent that operate exclusively in China. A growing number of the responding companies believe that the quality of China's investment environment has improved, rising from 28 percent in 2023 to 33 percent in 2024.

Pro-business environment 

To further attract foreign capital, China is committed to strengthening its "Invest in China" initiative, as emphasized by Minister Wang. Moving forward, China will refine investment promotion mechanisms, improve project matchmaking, and enhance services to ensure smooth project implementation. Key investment promotion events will continue to be held under the "Invest in China" brand to facilitate high-quality foreign investment.

Daxing has successfully pursued foreign investment and attracted companies like Aegilon. The local government of Yufa has implemented 10 measures to optimize the business environment, focusing on thoughtful services, refined management and open innovation. These initiatives have created a livable and business-friendly international environment, with policies such as fostering transparent government-business relations, developing an internationalized business climate and offering comprehensive service guarantees receiving widespread acclaim.

For instance, during Aegilon's business registration process, Yufa's local government closely engaged with the company to understand its development plans and provided tailored policy guidance. A specialized service package—comprising designated contacts, professional translation, agency services and document pre-review—ensured a smooth registration experience. Moreover, coordination with market regulation authorities greatly reduced processing times, allowing Aegilon to commence operations swiftly through an efficient one-stop service mechanism.

"Daxing offers an advantageous location with access to modern infrastructure, a robust supply chain, and proximity to both production facilities and logistics hubs. The Chinese market itself, along with government incentives and a favorable business environment, made it a strong choice for investment," Walid Elsyed Elokda, founder and CEO of Aegilon (Beijing), told Beijing Review.

With the strengthening economic ties between China and Egypt, the Egyptian market shows promising growth potential. Aegilon is always exploring new opportunities to expand, including the possibility of establishing local production or R&D teams to strengthen its capabilities, Elokda added.

On February 20, the Daxing District High-Quality Industrial Development Conference was held, unveiling an "Opportunities List" and a "Capabilities List." The "Opportunities List" highlights the district's investment potential, providing businesses with precise investment guidance. The "Capabilities List" showcases the district's strong industrial support system, including business incubation, service efficiency and technology commercialization. To further facilitate business matchmaking, the district released the 2025 Daxing District Enterprise Products and Services Directory, covering five key sectors—biopharmaceuticals, advanced manufacturing, digital economy, construction and services. The directory features 199 enterprises offering over 870 core products and 30 major service categories, demonstrating the district's robust industrial ecosystem and innovative capacity.

Looking ahead, China will continue to enhance its business environment and expand market access, attracting more international enterprises to share in its development opportunities. The establishment of Aegilon in Daxing serves as a testament to this ongoing trend.

Copyedited by G.P. Wilson

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