China, US trade talks boost investor optimism

Following the latest round of economic and trade talks between China and the United States in Stockholm, Sweden, last month, multinational corporations across sectors are reinforcing their commitment to the Chinese market, reflecting growing optimism for mutually beneficial bilateral cooperation.

Business leaders highlighted China's vast consumer base, resilient supply chains and drive for industrial upgrading as reasons that the country remains a critical market despite geopolitical friction.

They said sustained dialogue between the two sides would help steady investor expectations and bolster confidence in long-term business ties.

China and the US extended on Aug 12 the pause on tariff hikes on each other's goods for another 90 days, according to a joint statement on the China-US economic and trade meeting in Stockholm released by the Ministry of Commerce last week.

Nathaniel Madarang, president for the Asia-Pacific region at US tire manufacturer Goodyear Tire & Rubber, said that stable and healthy China-US economic and trade relations are essential for driving mutual economic growth and innovation, as shown by the substantial trade volumes and jobs they support.

As China's auto industry is being reshaped by technology and changing consumer demand, Madarang said the country will see strong growth in the electric vehicle, sport utility vehicle and luxury car segments.

He said that in order to stay competitive, Goodyear has introduced its latest SUV tire products in China and other Asia-Pacific markets.

Quin Liu, chief commercial officer at Logitech International, the Swiss maker of computer peripherals and software, said that his company will invest more in research and development in Suzhou, Jiangsu province, in the coming years, adding that free trade and reduced geopolitical friction are key to supporting the growth of multinationals operating in China, the US and beyond.

"More than half of the products we make in China are shipped to global markets," said Liu, adding that China's industrial ecosystem has evolved into an innovation hub, helping multinationals tap local talent and deepen partnerships.

Foreign-invested companies recorded foreign trade value of 7.46 trillion yuan ($1.04 trillion) in the first seven months of 2025, up 2.6 percent year-on-year and accounting for 29 percent of China's total trade. Meanwhile, their exports reached 4.1 trillion yuan, an increase of 4.9 percent year-on-year, data from the General Administration of Customs showed.

According to Zhao Fujun, a researcher specializing in international economic cooperation at the Beijing-based Development Research Center of the State Council, in order to reinforce long-term investor confidence, China has pressed ahead with institutional opening-up as well as efforts to enhance market transparency and policy predictability, and to address concerns raised by foreign companies.

For instance, the National Development and Reform Commission reiterated in July that China's policy on attracting foreign investment remains unchanged, pledging to further ease market access and expand openness while ensuring that foreign companies enjoy equal treatment in areas ranging from public procurement to standard-setting.

Yin Zheng, executive vice-president of China and East Asia operations at French industrial conglomerate Schneider Electric, said that as China enters a new era of green and innovation-led growth, global investment in China is increasingly focusing on customized innovation, supply chain efficiency, high-end manufacturing, and digital and green solutions.

Reflecting this trend, US materials science company Corning plans to localize the production of high-end optical fibers in Shanghai.

Lin Chunmei, president and general manager of Corning China, said the move aims to meet surging demand for denser, faster data transmission in artificial intelligence data centers, where fiber specifications far exceed those of conventional facilities.

Foreign direct investment in China's manufacturing sector amounted to 109.06 billion yuan between January and June, while high-tech industries attracted 127.87 billion yuan. FDI inflows from Switzerland, Japan and the United Kingdom rose by 68.6 percent, 59.1 percent and 37.6 percent year-on-year, respectively, according to data from the Ministry of Commerce.

zhongnan@chinadaily.com.cn