Focus to attract global capital that aligns with long-term growth goals

In years gone by, global companies, crucial to China's long-term economic success, established factories in China's coastal provinces, especially Guangdong, Zhejiang and Jiangsu. These companies employed young workers from the local job market and inland provinces to assemble products for export.

Following China's accession to the World Trade Organization in 2001 as its 143rd member and its rise to the world's second-largest economy, these companies, in particular automakers, consumer goods, and food and beverage producers, broadened their operations by setting up new facilities in China's inland regions. There, they shifted toward producing goods in large volumes for the domestic market.

Now, as China continues to optimize its industrial system, foreign companies are increasingly investing in sectors such as advanced manufacturing, modern services, high technology, environmental protection, and research and development.

These fields are at the forefront of China's push to elevate its economic structure, reflecting the country's commitment to sustainable and innovative growth. This strategic focus aims to attract global capital that aligns with China's long-term growth goals.

This strategic evolution in China's industrial landscape presents immense development opportunities for multinational companies. As the country champions sectors like advanced manufacturing, telecommunications, and green and renewable energy, global businesses have the chance to tap into a sophisticated economic environment ripe for innovation.

For example, Siemens Healthineers, a German health technology company, started construction of a new manufacturing and research facility in Shenzhen, Guangdong province in mid-January.

With a total investment exceeding 1 billion yuan ($136.4 million), the new facility is expected to be operational by the end of 2027. It will focus on the research and production of angiography equipment and core components for magnetic resonance imaging systems.

This integration into China's burgeoning markets allows them to leverage cutting-edge technological advancements and robust industrial capabilities. Moreover, China's commitment to environmental sustainability opens new avenues for businesses specializing in green technologies and services, aligning with global trends toward eco-friendly industrial practices.

The modes of participation of foreign companies in the Chinese market are also evolving. Many of them, such as GE Health-Care, ABB Group and Honeywell International Inc, have been using platforms like the China International Import Expo and China International Supply Chain Expo to launch their latest products globally and across Asia for the first time.

As the government pledged that it will roll out more measures to expand opening-up and attract more foreign investment in 2025, the country is likely to further advance the opening-up of its services sector, particularly pilot programs in the telecommunication, medical care and education fields this year, after it placed zero restrictions on foreign investment in its manufacturing sector in 2024.

In recent years, China's rapid advancements in digital infrastructure have also played a crucial role in attracting foreign investment. With one of the world's largest internet populations, the digital economy in the country offers a lucrative market for tech giants and startups alike.

Furthermore, China's push toward regional growth strategies, such as the development of the Guangdong-Hong Kong-Macao Greater Bay Area, the Yangtze River Economic Belt and the Chengdu-Chongqing economic zone, offer new opportunities for investment beyond the traditional coastal economic hubs. These regions are becoming hot spots for high-tech industries, sustainable urban development and cross-border logistics services.

Despite the complex global economic and financial landscape, the resilience of China's economic growth continues to make it an appealing destination for foreign investment. The nation's vast consumer market, strong manufacturing base and increasing technological capabilities ensure that it continues to welcome foreign companies interested in exploring and expanding within its market.

China's strategic reforms and infrastructural investments over the years also underscore its commitment to a more open and reciprocal economic environment.

This commitment not only reinforces China's position as a global manufacturing and tech hub, but also as a leading player in the global economy, continually attracting foreign businesses looking for growth and innovation opportunities.