MNCs to scale up investments on biz vitality

Global businesses will continue to scale up investment in China in 2026, betting on the enduring vitality of economic growth and innovation strength in the world's second-largest economy, said market watchers and business leaders.

The comments came after French tire and mobility company Michelin Group put into operation the second phase of its Shanghai plant in January at a total investment of 3 billion yuan ($434 million), while German chemical manufacturer Covestro AG also started operations at its new manufacturing facility in Zhuhai, Guangdong province, the same month.

French automotive technology supplier Forvia Group announced last month that its new smart cockpit project for new energy vehicles will be established in Changshu, Jiangsu province, a move aimed at strengthening its footprint in China, particularly in the country's fast-growing electric vehicle market.

"These developments clearly show that many foreign companies are shifting the focus of their China investment strategies, as innovation-driven sectors, such as new energy, green industries and the digital economy, emerge as key priorities," said Liu Ying, a researcher at Renmin University of China's Chongyang Institute for Financial Studies in Beijing.

Echoing that view, Jiang Liqin, head of clients and markets for KPMG China, said that the structural innovation and upgrading of the Chinese market are prompting multinational companies to reassess their strategies in the country.

Increasingly, multinationals are shifting from expansion to profitable models, using local digital innovations to boost efficiency, refine pricing and strengthen competitiveness in China, said Jiang.

Despite subdued global investment sentiment, the actual use of foreign direct investment in China reached 747.69 billion yuan in 2025, including 241.77 billion yuan directed to the high-tech sector, data from the Ministry of Commerce show.

Elekta, a Swedish medical equipment producer, will further strengthen its footprint in China to capture opportunities from the country's vast market and ongoing opening-up drive, while leveraging homegrown innovation to provide practical solutions that can be expanded globally during the country's 15th Five-Year Plan (2026-30) period.

Gong Anming, executive vice-president of Elekta and president of Elekta China, said that the recommendations for formulating the 15th Five-Year Plan lay out a clear path for high-quality development.

"As one of the world's most dynamic healthcare markets, China's commitment to new quality productive forces and high-level opening-up provides a solid foundation for global companies like Elekta to deepen cooperation and achieve shared success," said Gong.

After years of growth, Elekta's Beijing production base now serves as its global production hub with the most complete product portfolio. It manufactures the company's full line of radiotherapy equipment locally, with over 60 percent of its output exported to over 120 countries and regions.

"Our Shanghai center has also become Elekta's largest global software development base, continuously driving technological innovation for both local and international markets," he added.

With strong demand for chemical products continuing across China's industrial sectors, the Association of International Chemical Manufacturers — representing companies from Europe, North America, Asia and the Middle East — will deepen its engagement in the country by strengthening policy dialogue and supporting the high-quality development of foreign-invested chemical firms this year.

Xia Fuliang, chairman of the Shanghai-headquartered association, said China now accounts for about 42 percent of global chemical output, a share widely expected to approach 50 percent by 2030. This is not only a huge market, but also one rich in structural opportunities.

"Demand for specialty chemicals will continue to expand in sectors such as new energy vehicles, pharmaceuticals, healthcare and high-end equipment in the country," said Xia, who is also president of China operations at German specialty chemicals group Evonik Industries AG.