Why foreign companies are ramping up R&D investment in China

Since the beginning of this year, foreign investment in China has shown a clear trend: an increasing number of multinational corporations are expanding their research and development (R&D) spending and accelerating the establishment of R&D centers.

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Statistics show that by September, Shanghai was home to 631 foreign-funded R&D centers, while Beijing had 221 such centers as of January.Recently, German multinational Bosch Group signed an agreement with the Suzhou Industrial Park in Suzhou, east China's Jiangsu Province, to invest approximately 10 billion yuan (about $1.4 billion) over the next five years in an intelligent driving control innovation project. The initiative will focus on the R&D of full-stack intelligent assisted driving solutions and smart cockpit hardware and software.

In Jiaxing, east China's Zhejiang Province, Danish industrial giant Danfoss Group announced an additional investment of 2.7 billion yuan to build its second campus in China-an advanced, zero-carbon industrial park integrating R&D, testing, production, and exhibition functions. This marks the company's tenth capital increase in China over the past two decades.

The surge in foreign enterprises establishing or expanding R&D operations in China reflects not only their confidence in the country's investment environment but also their recognition of its vibrant innovation ecosystem.