Foreign enterprises have initiated new projects or expanded investments in China this year, demonstrating a strong commitment to deepening their presence in the Chinese market. Recent survey reports from the German Chamber of Commerce in China and the American Chamber of Commerce in China provide data-backed evidence of the high recognition foreign companies have for the Chinese market, highlighting its unique appeal and robust competitiveness within the global investment landscape.
In Shanghai, Michelin Group's "Magnolia Project," with an investment of 3 billion yuan, has recently commenced operations. As its first strategically significant investment project systematically designed, constructed, and operated under the "factory of the future" concept, it will focus on China's continuously growing demand for new energy and high-end mobility solutions.
In Taicang, Jiangsu, a German environmental equipment manufacturer has just inaugurated its newly built Asia-Pacific headquarters. The new project represents a total investment of 500 million yuan, with factory area nearly doubling. An additional 200 million yuan will be invested over the next three years for equipment upgrades, catering to market demands in both China and the wider Asia-Pacific region.
The innovation sector is also witnessing increased activity from foreign enterprises. For instance, Solstice Advanced Materials, a company spun off from Honeywell, recently established its China headquarters in Shanghai. Its business focuses on areas including refrigerants, semiconductor manufacturing, data center cooling, industrial fibers, and pharmaceutical packaging.
This sustained investment by foreign enterprises stems from firm confidence in the potential of the Chinese market. The recent "Business Confidence Survey Report" released by the German Chamber of Commerce in China indicates that 93% of German companies in China plan to maintain their roots in the market. Over half of the surveyed German firms intend to increase their investment in China, and 65% express confidence in China's economic development over the next five years.
The 2026 "China Business Climate Survey Report" from the American Chamber of Commerce in China also conveys positive signals: 52% of respondent companies still regard China as one of their top three global investment destinations, and more than half anticipate achieving profitability in 2025.
An expert from the University of International Business and Economics noted that these two reports represent a vote of confidence from foreign enterprises in the Chinese economy, objectively reflecting the irreplaceable strategic value of the Chinese market. The fact that over 90% of German companies choose to "stay rooted" and over half of American firms rank China among their top three investment destinations proves that, against the backdrop of increasing global economic uncertainty, the Chinese market remains a preferred choice for global capital.
This trend suggests that foreign investment in China is entering a new cycle characterized by "deep integration into industrial chains," with China continuing to serve as a "stable anchor" for global industrial chain investment.
The sustained increase in foreign investment is underpinned by the irreplaceable attractiveness of the Chinese market. An associate professor from the Central University of Finance and Economics stated that the continuous unleashing of potential from China's ultra-large-scale market, coupled with the expansion of emerging sectors like new energy, artificial intelligence, and elderly care health, provides foreign enterprises with ongoing growth momentum.
China's well-developed modern manufacturing system, high-level supporting infrastructure, and energy security system provide multinational corporations with highly efficient capabilities spanning from research and development to industrialization. Foreign investment increases are not only aimed at sharing in China's consumption dividends but also at deeply participating in the global industrial transformation and technological iteration led by China. This also reflects a shift in the investment orientation of global industrial capital from traditional "cost-driven" motives towards drivers centered on "innovation premium" and "certainty."
Furthermore, China's continuously improving business environment safeguards foreign enterprises. The country has consistently shortened the negative list for foreign investment access, achieving full openness in the manufacturing sector. Simultaneously, it is advancing comprehensive pilot programs for opening up the services sector and has introduced policies encouraging reinvestment by foreign-invested enterprises within China. A series of practical measures allow foreign enterprises to invest in China with greater assurance and a willingness for long-term engagement.
Regarding how different regions can effectively attract and utilize foreign investment this year, it was suggested that local governments should focus on implementing market access for high-level service industries such as telecommunications and healthcare, while ensuring foreign enterprises receive equal treatment in areas like government procurement and standard setting.