China remains appealing to foreign investors
SHANGHAI - Despite geopolitical tensions and rising trade protectionism, international businesses are deepening their commitments in China as 2025 unfolds, demonstrating the country's appeal to those seeking to stay competitive globally.
US automaker Tesla's Megafactory in Shanghai began producing energy storage batteries on Tuesday. Earlier this month, Toyota announced plans to establish a wholly owned electric vehicle plant in the eastern Chinese economic hub. In January, construction started on Siemens Healthineers' new manufacturing and research facility in South China's Shenzhen.
The rationale behind these investments by global industry leaders is clear: China remains a vital market with significant growth potential.
With its expanding middle class, China's position as a global economic powerhouse makes its vast market hard to ignore. In 2024, the country's gross domestic product (GDP) reached a record 134.91 trillion yuan ($18.81 trillion), marking a 5-percent year-on-year increase. As the world's second-largest economy, China offers opportunities that are difficult to find elsewhere.
China's supply chain has become increasingly sophisticated and complete. Its highly competitive and advanced manufacturing ecosystem continues to attract high-value, technology-intensive investments.
Additionally, China's talent pool, particularly its abundance of engineers, bolsters multinational corporations' confidence in establishing global research and development centers here. The country's transformation into an innovation hub is particularly evident in industries such as electric vehicles and lithium-ion batteries. As China builds a modern industrial system, it accelerates efforts to develop new quality productive forces, creating fresh opportunities for global companies.
China remains committed to opening up and fostering win-win cooperation. The nation's market has become increasingly accessible, and a series of measures have been taken to encourage foreign investment. In recent years, China has made significant strides in promoting high-standard openness, including reducing the negative list for foreign investment, eliminating all restrictions on foreign investors in manufacturing, and expanding unilateral opening to the least-developed countries. Results of these efforts are reflected in the 9.9-percent increase in the number of newly established foreign-funded enterprises in China last year.
Furthermore, Chinese authorities have made expanding high-standard economic openness a key priority for 2025. During an executive meeting on Monday, the State Council approved an action plan to stabilize foreign investment this year. The meeting called for more practical and effective measures to attract foreign capital, underscoring China's commitment to creating a business-friendly environment.
Despite challenges posed by the politicization of economic and trade issues in the West and sluggish global investment, China's high-level openness, economic vitality, and expanding consumer base continue to make it a top investment destination.
According to the 2024 Kearney Foreign Direct Investment Confidence Index, which measures investor expectations for FDI over the next three years, China jumped from the seventh to third place in global rankings, leading all emerging markets.
As many multinational executives have noted, "The next China is still China." In an era of uncertainty and instability, one thing remains clear: Investing in China is a strategic move for those looking to secure their future.
