MNCs see China as a 'critical market'

Multinational corporations are strategically positioning China as a "critical market" in their global operations, driven by the country's systemic business reforms and long-term investment appeal, according to an industry analysis by the Hurun Research Institute.

"Through systematic business environment reforms and institutional opening measures, China has established a dual guarantee of policy sustainability and regulatory transparency, providing predictable and stable development space for global capital," said Rupert Hoogewerf, chairman and chief researcher at Hurun.

He made the remarks during the 2025 China Langfang International Economic and Trade Fair in Langfang, Hebei province, on Monday.

The inaugural 2025 Hurun largest overseas manufacturing companies in the Chinese mainland list was unveiled during the event. It identifies 30 major foreign manufacturers demonstrating deep market integration, with their operations in the Chinese mainland contributing an average of 23 percent to their global sales revenue.

The list's methodology prioritized firms with significant manufacturing footprints in the Chinese mainland, evaluating them based on the latest fiscal year's local sales revenue and employee scale, with respective weightings of 70 percent and 30 percent.

Among them, automotive industry players dominate the ranking, claiming 12 of the 30 spots and representing 40 percent of all listed companies.

Established players like General Motors and Bosch contrast with relative newcomer Tesla, which entered China in 2012 yet achieved over 150 billion yuan ($20.9 billion) in mainland revenue last year, Hoogewerf said.

"The Chinese new energy vehicle industry has become a global calling card. In recent years, foreign automotive companies operating in China have been adjusting their investment strategies, increasing their investments in the new energy vehicle sector," Hoogewerf said.

He added that MNCs primarily sold their products to the Chinese market in the past and gradually started manufacturing in China.

"Now, they have entered a new phase of collaborating with China in research and development because China is at the forefront in many areas of innovation. This is a reflection of the upgrading of China's manufacturing industry," he said.

In the list, Japan, Germany and the United States represent the largest investor nations, contributing seven, six, and five companies, respectively, to the ranking.

"Despite the recent tariff disputes between China and the US, in the long term, US companies' confidence in the Chinese market remains strong," he said.

Hoogewerf quoted the 2025 China Business Climate Survey Report released by the American Chamber of Commerce in China, which reported that nearly 70 percent of the surveyed companies in the consumer industry expect to increase their investments in China this year. Additionally, almost half of the surveyed companies have listed China as one of the top three global investment destinations.

According to the Hurun Research Institute, the sources of investment in China are becoming more diverse. Investments from the United Kingdom, South Korea, the Netherlands and Japan have seen double-digit growth in China, while investments from other Belt and Road Initiative economies are rapidly increasing.

Hebei is among the places that attract foreign capital, as the province continuously enhanced efforts to improve the business environment.

"The province now hosts over 3,600 foreign-funded enterprises, contributing 13.3 percent of the province's tax revenue and 16.3 percent of its import-export value, while supporting over 300,000 jobs," said an official with the Hebei Provincial Department of Commerce.