MNCs double down on China's potential

China continues to see a robust surge in foreign investment, with over 70,000 new foreign-invested enterprises established in 2025, as multinational corporations double down on the market's innovation potential, experts and officials said.

Yan Dong, vice-minister of commerce, presented the robust figures, noting that in 2025 the number of new foreign-invested enterprises grew by 19.1 percent year-on-year. The actual use of foreign capital reached 747.69 billion yuan ($107.5 billion), with high-tech industries accounting for 32.3 percent of the total.

On the outbound front, Yan said in an earlier news conference that China has promoted international cooperation in industrial and supply chains. Non-financial outbound direct investment reached 1 trillion yuan in 2025, up 1.6 percent year-on-year, while the value of newly signed contracts for overseas projects hit 2.1 trillion yuan, an increase of 8.5 percent.

Echoing the official data, business leaders said China's rapid advancements in fields such as artificial intelligence and biomedicine have captured global attention. The country's vigorous tech innovation is becoming a core magnet for sustained foreign investment.

Roberta Lipson, a board member of the US-China Business Council and founder of United Family Healthcare, said she believes the greatest potential of the Chinese economy lies in leveraging the new economy and innovative achievements to drive industrial development.

"We plan to continue to expand our footprint in China,"Lipson said. "For instance, we are currently planning to build a comprehensive international medical park in Beijing."

Oliver Oehms, chief representative of the Delegation of German Industry and Commerce Beijing, highlighted significant changes in China's economy, citing the rapid rise of numerous emerging sectors, particularly in high-tech ones.

These areas align closely with Germany's industrial strengths, Oehms said in an interview with Chinese media, adding that the German industrial sector is eager to participate and deepen cooperation in the market.

Data from the business community support this sentiment. The Business Confidence Survey 2025/26, released by the German Chamber of Commerce in China on Dec 2, shows that 93 percent of German companies have no plans to leave the Chinese market in the next two years. Furthermore, 53 percent plan to increase their investment over the same period, up 2 percentage points from the previous year.

Notably, a record 60 percent of respondents believe Chinese companies will take a leading position in industry innovation, while 56 percent plan to further deepen ties with Chinese partners.

Looking ahead, foreign enterprises are closely watching the development blueprint for the 15th Five-Year Plan (2026-30) period, viewing it as a source of new opportunities.

Adam Dunnett, secretary-general of the European Union Chamber of Commerce in China, expressed interest in the plan.

"We hope to understand what specific benefits the plan will bring to enterprises at a practical level," Dunnett said. "We look forward to engaging with relevant departments ... to clarify how European companies can participate and reap the benefits of this development."

Liu Zhengfu, director of the Department of Development Research at the China Council for the Promotion of International Trade, said that more foreign companies are proving through their actions that "investing in China is investing in the future".