China Strengthens Efforts to Stabilize Foreign Investment, Building a Global Investment “Magnet”

Foreign investment serves as a bridge between domestic and international markets, playing a crucial role in building a new development paradigm and promoting high-quality growth.

Despite complex and challenging global economic conditions, China has delivered impressive results in attracting foreign investment—since the start of the 14th Five-Year Plan, cumulative foreign investment has exceeded $700 billion, achieving the target six months ahead of schedule. The number of newly established foreign-invested enterprises has increased by 25,000 compared to the 13th Five-Year Plan period.

Investing in China means investing in the future. Amid deep adjustments in economic globalization, China is building a strong global investment “magnet,” leveraging comprehensive and multi-dimensional strategic advantages to create a thriving environment for multinational corporations.

Increased Foreign Investment Reflects China’s Strong Market Appeal

This year, China has seen significant foreign investment activity: the first wholly foreign-owned tertiary hospital opened in Tianjin, companies like Airbus secured approvals for expanded telecom business pilot programs, and pharmaceutical giants such as Bayer, Pfizer, and AstraZeneca established operations in Beijing’s Biomedical Innovation Park.

Despite global uncertainties, China’s market continues to demonstrate strong “magnetic” appeal:

Data shows that in the first half of the year, 30,014 new foreign-invested enterprises were established nationwide, a year-on-year increase of 11.7%. By the end of June, the total number of newly established foreign-invested enterprises reached 229,000, 25,000 more than during the 13th Five-Year Plan period.

Reports highlight China’s pivotal role in global supply chains and its vast consumer market as key drivers of sustained foreign investment. Many multinational companies describe China as an “ideal, secure, and dynamic” investment destination—a “certain oasis and hotspot for investment.”

China has implemented a series of measures to stabilize foreign investment, including policies to encourage reinvestment by foreign enterprises and streamlined regulations for strategic investments in listed companies.

Experts note that China’s stable economic foundation, diverse advantages, strong resilience, and long-term growth potential remain unchanged. The country’s vast market, efficient industrial and supply chains, and continuously improving innovation environment provide fertile ground for multinational investment.

Optimized Investment Structure: From Manufacturing Hub to Innovation Center

Companies like Amway are deepening their commitment to China, investing billions in upgrading production facilities, digital infrastructure, and customer experience centers. Over the past four years, Amway has achieved an average annual growth rate of 7%, with China being its fastest-growing market.

Foreign enterprises are not only benefiting from China’s market but also actively contributing to high-quality development. Since the 14th Five-Year Plan, China’s foreign investment structure has shifted significantly toward high-tech industries.

In the first half of the year, high-tech industries attracted $127.87 billion in foreign investment, with sectors like e-commerce services, pharmaceuticals, aerospace, and medical equipment seeing growth rates exceeding 50% in some cases. By 2024, high-tech industries accounted for 34.6% of total foreign investment, up 6 percentage points from 2020.

In Shanghai, newly certified multinational regional headquarters and R&D centers highlight the city’s appeal, with major projects in biopharmaceuticals, consumer goods, finance, and emerging sectors like green energy and digital economy.

Reports indicate that R&D spending by multinationals in China surged by 86.5% from 2013 to 2023, reflecting a shift from “market-driven” and “cost-driven” investments to “innovation-driven” collaborations.

Expanding Openness: Policy Measures Yield Results

In Shanghai’s Jinshan District, Lexus’s new electric vehicle and battery R&D project broke ground just two months after signing, showcasing China’s efficient and supportive business environment.

China continues to expand market access, eliminate restrictions in manufacturing, and pilot openings in sectors like telecom and healthcare. Over 500 regulatory documents have been revised or abolished to improve the business climate, while dedicated platforms facilitate communication between foreign investors and government agencies.

At the recent China International Supply Chain Expo, U.S. participation grew by 15%, with 60% of exhibitors being Fortune 500 companies. Investment from ASEAN, Switzerland, Japan, the UK, Germany, and South Korea also saw significant growth in the first half of the year.

China’s commitment to high-level openness promises deeper reforms, high-quality development, and new opportunities for global cooperation and shared success.

14th Five-Year Plan

The **14th Five-Year Plan** (2021–2025) is China’s national economic and social development blueprint, outlining key goals for sustainable growth, technological innovation, and high-quality development. It emphasizes advancements in green energy, digital economy, and domestic consumption, while continuing China’s long-term strategy of modernization and global competitiveness under the Communist Party’s leadership. The plan builds on previous five-year plans, a policy framework used since 1953 to guide the country’s development.

13th Five-Year Plan

The “13th Five-Year Plan” (2016–2020) was China’s economic and social development blueprint, focusing on sustainable growth, innovation, and poverty alleviation. It emphasized transitioning to a more advanced industrial economy, reducing pollution, and expanding technological advancements. The plan successfully lifted over 10 million people out of poverty annually, meeting key targets ahead of schedule.

Tianjin

Tianjin is a major port city in northern China, located near Beijing, with a rich history dating back to the Yuan Dynasty (13th–14th century). It became a significant trading hub after being opened to foreign concessions in the 19th century, blending Chinese and Western architectural influences. Today, Tianjin is known for its colonial-era buildings, vibrant culture, and economic importance as part of the Bohai Rim region.

Beijing’s Biomedical Innovation Park

Beijing’s Biomedical Innovation Park is a state-of-the-art research and development hub focused on advancing biotechnology, pharmaceuticals, and medical innovation. Established as part of China’s push to become a global leader in life sciences, the park brings together academic institutions, startups, and major corporations to drive breakthroughs in healthcare. Its development reflects Beijing’s broader strategy to integrate science, technology, and industry in key growth sectors.

Amway

Amway is a multi-level marketing (MLM) company founded in 1959 by Jay Van Andel and Richard DeVos in Ada, Michigan. Known for its direct selling model, Amway offers a range of products, including health supplements, beauty items, and home care goods, through independent distributors worldwide. The company has grown into one of the largest MLM businesses globally, though it has faced criticism and legal scrutiny over its business practices in some regions.

Shanghai

Shanghai is a vibrant global metropolis and China’s largest city, known for its blend of modern skyscrapers and historic colonial architecture. Originally a small fishing village, it grew into a major port during the 19th century under Western influence and became a center of trade, finance, and culture. Today, it is a symbol of China’s rapid economic growth, featuring landmarks like the Bund, Pudong’s futuristic skyline, and traditional gardens such as Yuyuan.

Jinshan District

Jinshan District is a coastal area located in the southwest of Shanghai, China, known for its scenic beaches, wetlands, and cultural heritage. Historically, it was an important salt-producing region during ancient times and later became a key agricultural and industrial zone. Today, Jinshan is also famous for its annual Beach Music Festival and the historic Jinshan City Site, which dates back to the Ming Dynasty.

China International Supply Chain Expo

The China International Supply Chain Expo (CISCE), launched in 2023, is a global trade event focused on promoting resilient and efficient supply chains. Organized by the China Council for the Promotion of International Trade (CCPIT), it showcases advancements in industries like smart manufacturing, green energy, and digital technology. The expo highlights China’s role in global supply chains and fosters international cooperation in trade and innovation.