China keen on boosting FDI

With global investment conditions remaining challenging, China is expected to lock in new investment plans from foreign corporations to build new factories and invest in the services sector in the country in the years ahead, said government officials and foreign business leaders.

Speaking at a weekly news briefing on Thursday in Beijing, He Yadong, spokesman for the Ministry of Commerce, said China will deepen reforms in its foreign investment promotion system, expand institutional opening and further improve the business environment.

He said the aim is to strengthen the nation's appeal among foreign investors, turn its vast market into a global opportunity, and ensure foreign companies can enter, stay and thrive as key participants in China's development process.

Wang Ya, head of the department of foreign investment administration at the Commerce Ministry, said China will remain unwavering in expanding high-standard opening-up as it seeks to foster new strengths in attracting foreign investment and enhance the "Invest in China" brand this year.

"The government will expand market access and the opening-up of the services sector, including telecom, healthcare and education. It will also support foreign-funded businesses in the services sector in expanding their value chains," said Wang.

The recommendations for formulating the 15th Five-Year Plan (2026-30) further underscore the development of new quality productive forces and high-quality growth, while sending a clear signal of high-standard opening-up and mutually beneficial cooperation, and providing strong policy impetus for China's steady economic expansion and efficiency-driven upgrading, said the National Development and Reform Commission.

Even though global investment sentiment has remained subdued, the actual use of foreign direct investment in China reached 747.69 billion yuan ($107.74 billion) in 2025, including 241.77 billion yuan directed to the high-tech sector, said the Ministry of Commerce.

In the meantime, FDI inflows into China jumped 75 percent year-on-year in e-commerce services, 42.1 percent in medical devices and equipment, and 22.9 percent in aerospace vehicles and equipment.

After setting up a new thermoplastic polyurethane (TPU) manufacturing facility in Zhuhai, Guangdong province, in late December, German chemical manufacturer Covestro AG plans to increase investment in China as part of its strategy to strengthen local production, innovation and market responsiveness in the coming year.

TPU is a highly versatile material used across various industries, including footwear, consumer electronics, functional films, and seating and cushioning systems in the automotive sector.

Monique Buch, chief commercial officer of Covestro, said the Zhuhai site will be rolled out in three phases, with capacity rising to as much as 120,000 metric tons per year when the final phase is completed in the 2030s, making it Covestro's largest TPU production facility globally.

Highlighting China's vast, high-quality and steadily growing market, Buch said the country's strong emphasis on sustainability aligns closely with the company's corporate philosophy.

"More importantly, the speed of market development and the ability to scale in China are rare globally, which is why we believe it is essential to stay close to customers and remain deeply rooted in the Chinese market," she added.

As it seeks to expand its presence in China, Cargill Inc, a United States-based agricultural conglomerate, broke ground on a factory expansion project in Beijing last week.

The project involves more than 45 million yuan in planned investment and will add two new food production lines, alongside a new automated warehouse, with operations expected to begin in the first half of 2027.

Xue Huayun, president for North Asia of Cargill's food business, said this project strengthens both the group's manufacturing capacity and its long-term commitment to China.

China saw FDI from Switzerland jump 66.8 percent year-on-year in 2025, while investment from the United Arab Emirates rose 27.3 percent and that from the United Kingdom expanded 15.9 percent, said the Ministry of Commerce.