Foreign firms ride strong wave of innovation

Multinationals deepen roots in China, attracted by market size and friendly policies.

- Wang Keju reports

tries a lung function testing device at AstraZeneca's booth at the 8th China International Import Expo in Shanghai in November.

(FAN YUQING / XINHUA)

More and more multinational companies are deepening their roots in China, drawn by the country's dynamic innovation, the size of its domestic market, and a fresh policy push to create a more welcoming business environment, officials and executives say.

The trend, evident across sectors from advanced manufacturing to consumer goods and financial services, reflects a recalibration by global companies seeking to capitalise on China's evolving economic strengths and robust policy support, they said.

Business leaders worldwide closely followed the recently concluded two sessions — the annual meetings of China’s National People’s Congress and the Chinese People's Political Consultative Conference — that serve as a critical window to observe the country's development plan for the new year.

In particular, opening-up policies deliberated there to further stabilise foreign investment, expand market access and align domestic rules with international standards will have a significant impact outside the country’s borders.

Despite protectionism and unilateralism being on the rise elsewhere, the Commerce Minister, Wang Wentao, said in late January that “China possesses various strengths in attracting foreign investment’.

As the world’s second-largest importer, accounting for more than 10 per cent of global imports, second only to the United States’ 13.6 percent, China continues to position itself as an indispensable node in global investment networks, Wang said.

The combination of market scale, industrial depth and breadth of talent ensures that China remains a central consideration in multinationals’ strategies, global business leaders said.