In response to profound adjustments in the global economic and trade landscape and increased geo-economic uncertainty, companies around the world have been making plans for supply chain restructuring and the re-selection of investment destinations.

However, despite these global changes, recent authoritative surveys have confirmed that China remains a hotspot for investment by multinational corporations.

Ninety-two percent of respondents to the Member Survey 2026 conducted by the U.S.-China Business Council reported profitability in China in 2025. Seventy-five percent of respondents to the Business Confidence Survey 2026 released by the European Union Chamber of Commerce in China (EUCCC) said their China-based production is more efficient than operations elsewhere. The White Paper on the Chinese Economy and Japanese Enterprises 2026 released by the Japanese Chamber of Commerce and Industry in China showed that 85 percent of Japanese firms in China choose to maintain or expand operations in the Chinese market.

Foreign investors' increasing confidence in China is not driven by short-term interests, but is a strategic choice based on the global competitive landscape. This confidence stems primarily from the continuous deepening of China's institutional opening up and the ongoing upgrading of the country's business environment.

China's irresistible appeal for foreign investment also lies in its complete industrial system and world-leading production efficiency. China has the world's only system covering all UN industrial categories, with highly concentrated upstream and downstream supporting clusters. From core component manufacturing to end product assembly, enterprises can complete the entire industrial chain of procurement, production and testing within short times and distances, significantly reducing logistics costs and production cycles. The EUCCC survey finding that 75 percent of businesses experience higher production efficiency in China than elsewhere can be attributed to the country's competitiveness in industrial clusters, infrastructure and intelligent manufacturing.

For multinationals, setting up production bases in China is not merely about leveraging cost advantages, but also about accessing the world's most comprehensive industrial collaboration network.

In addition, China's huge domestic market is a large profit source and a core pillar of performance growth for foreign-invested enterprises. China's population of 1.4 billion constitutes a massive and diverse consumer market, capable of supporting consumption of everything from high-end luxuries and precision industrial equipment to mass consumer products and services. Driven by the wave of consumption upgrading, sectors including new energy, biopharmaceuticals, high-end services and the digital economy continue to expand, constantly opening up new arenas for foreign-invested enterprises.

Many multinational corporations have upgraded their China operations from mere production and processing bases into global research and development centers, Asia-Pacific headquarters or launchpads for new products, so as to leverage local consumer demand to drive global development and strategic adjustments. In the EUCCC survey, nearly half of European enterprises said they believe that the innovation capabilities of local Chinese enterprises have surpassed those of their European counterparts.

Foreign investors continue choosing China not only because it makes business sense, but also as a result of China's commitment to high-standard opening up and high-quality development. It's hoped this mutually beneficial process will not only drive global economic growth and stability, but also help usher in a new chapter of global cooperation.

Copyedited by G.P. Wilson 

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