China remains foreign investment magnet

GUANGZHOU — China remains a key destination for foreign businesses, with more companies surveyed continuing to invest in the market despite global economic uncertainties, according to a report released on Tuesday by the American Chamber of Commerce in South China.

The 2026 Special Report on the State of Business in South China said 95 percent of participating companies report a firm commitment to maintaining operations in China.

According to the report, 45 percent of companies ranked China as their top investment priority, up 6 percentage points from 2024.

It noted that 75 percent of the companies surveyed plan to reinvest in China in 2026.

"Companies are reinvesting not only to expand market share, but to innovate, localize and strengthen their integration within the Chinese economy," said Harley Seyedin, chairman and president of AmCham South China. "This sustained reinvestment reflects confidence in the market's resilience and its central role in global business operations."

China also remains an important revenue source for many companies. In 2025, 37 percent of surveyed firms said more than 60 percent of their global revenue came from the Chinese market.

Notably, the report also showed that 91 percent of US companies said they would not "decouple" from China as a direct result of trade tensions.

A total of 426 companies participated in the latest survey, mainly from the US, China and Europe. Among them, more than half are wholly foreign-owned enterprises, and 32 percent are US-invested companies.

"Companies are deepening, not retreating from, their engagement in China, recognizing the scale of its market, the sophistication of its innovation ecosystem and its long-term growth trajectory," said Seyedin.

The report's findings come as China continues efforts to promote high-standard opening-up.

To better allow foreign investors to leverage its advantages in supply chain, market and innovation, the Chinese government has unveiled an array of key measures designed to create a long-term stable investment environment for foreign enterprises. The country has removed all market access restrictions for foreign investors in its manufacturing industry.

According to a Government Work Report submitted to the country's top legislature for deliberation, China will deepen reform of the institutional framework for promoting foreign investment this year. It will open wider to the outside world, with efforts to expand market access and open up more areas.

Official data also point to continued growth in foreign investment activity. In 2025, the number of new foreign-funded companies in China totaled 70,392, up 19.1 percent year-on-year.

Xinhua - China Daily