Magnetic attraction, mandatory options... Foreign companies provide these keywords for investment in China | China | Foreign companies

Foreign funded enterprises increase capital and expand production

Enhanced magnetic attraction in China

Since the beginning of this year, cross-border business activities have accelerated and many executives from multinational companies have come to China for intensive inspections. Foreign companies continue to invest more in China and cast a vote of confidence in the prospects of China's economic development through practical actions. Recently, many foreign-funded enterprises have accelerated their investment and production expansion projects in China, and the Chinese market's magnetic attraction to foreign investment continues to strengthen.

In Changzhou, Jiangsu, this German funded enterprise's second phase project in China has just been completed and put into operation, with an expanded factory area of 7000 square meters. At the same time, it has set up two major centers, namely the after-sales service and spare parts center and the global procurement parts center, and will undertake more global business.

Fernando Andres, CEO of Ruhr Pump Group: China's business is growing rapidly and requires greater production space. The expansion of the second phase allows us to introduce more new products, and this new space will be filled with new production lines, allowing us to produce more and make more profits.

This year, China's economic activities in various fields have continued to recover. The large market size, complete industrial system, abundant talent resources, and continuously optimized business environment have further increased the willingness of foreign investors to invest in China. This Japanese company, which produces LCD glass substrates, has just completed the construction of the main steel structure in the fifth phase of its new investment project in Xiamen. The new investment plan has been put on the agenda.

General Manager of Electric Nitrate Glass Co., Ltd., Nobuo Ohahashi: 70% of the world's monitors are produced in China, which has a large market. Since we settled in Xiamen in 2014, we have laid out a new project almost every year and completed investment in new capital and production expansion every two years. In the process of continuously increasing capital and expanding production, the Xiamen base has become the factory with the largest overseas investment scale and the most complete production process.

Since the beginning of this year, more and more newly established foreign-funded enterprises have settled in China. According to data from the Ministry of Commerce, in the first five months, there were 18532 new foreign-invested enterprises established nationwide, a year-on-year increase of 38.3%.

According to a research report by the China Council for the Promotion of International Trade, over 80% of surveyed foreign-funded enterprises expect their investment profit margin in China to remain stable or increase this year, and over 90% of surveyed enterprises expect their investment profit margin in China to remain stable or increase in the next five years. Against the backdrop of sluggish global economic growth, China will continue to be an important investment destination for foreign investment.

Foreign companies investing in China "increasing quantity" and "improving quality"

During the interview, the reporter noticed that multinational corporations investing in China are no longer limited to building new factories and production lines, but have also moved their research and development centers, innovation centers, or business headquarters to China. Foreign funded enterprises investing in China can be described as "increasing quantity" and "improving quality".

In Jinan High tech Zone, Shandong Province, this Swedish company has built the world's largest commercial vehicle bearing production base in China. The second phase of the investment expansion production base project was officially put into operation recently, and the company's commercial vehicle research and development center will also be located here.

David Johnson, Global President of SKF Automotive Division: China has always been a key market we focus on. On the one hand, we see China actively building a sustainable future, which perfectly aligns with our philosophy and determination in sustainable development; On the other hand, China leads the forefront in innovation, so we are determined to deeply cultivate and invest in China.

With the continuous advancement of China's high-level opening-up to the outside world, more and more foreign-funded enterprises are settling their research and development centers in China. From January to May this year, Shanghai alone added 11 foreign-funded research and development centers.

In the past two days, the third phase of BASF Shanghai Innovation Park project is currently undergoing final completion work and will be put into use by the end of this month. Shanghai Innovation Park is the largest R&D hub in BASF's Asia Pacific region and also one of BASF's global R&D centers. Two expansions have been completed since it was put into use in 2012. After the third phase of the project is put into use, BASF's total investment in the Shanghai Innovation Park will reach approximately 280 million euros.

BASF Greater China Chairman and President Lou Jianfeng: It is the largest innovation hub in BASF's Asia Pacific region and an important component of our global innovation layout. It further expands our local research and development capabilities in China. BASF has always been confident in the Chinese market and BASF's own development in China.

According to the person in charge of the Shanghai Municipal Commission of Commerce, Shanghai has gathered more than 540 foreign-funded R&D centers, with an average annual R&D investment of 155 million yuan per center. More and more R&D centers are undertaking global R&D functions.

Sheng Hongyan, Director of the Foreign Investment Promotion Department of the Shanghai Municipal Commission of Commerce: Currently, research and development centers established by the Fortune 500 companies in Shanghai account for about 1/4 of the total number of foreign-funded research and development centers. Every year, the city adds about 25 newly recognized foreign-funded research and development centers. Foreign R&D centers are mainly concentrated in key industries such as biopharmaceuticals, information technology, automobiles, and components, and their capabilities continue to improve.

Foreign funded enterprises: The Chinese market is a "must choose" option

In interviews, many foreign-funded enterprises stated that they will continue to expand their business in China and share development opportunities in China. Furthermore, based on our journalist's questionnaire survey, reports from foreign business associations in China, and relevant research from authoritative departments, it can be seen that for multinational corporations, the Chinese market is not an "optional" option, but a "mandatory" option.

Recently, at the first China International Supply Chain Promotion Expo held in Beijing, reporters conducted a questionnaire survey on more than 200 representatives of domestic and foreign enterprises on site. The survey results show that the first China Chain Expo ranks first and second in terms of expectations, with the addition of new partners and orders. In the assessment of the supply chain situation, three-quarters of digital technology companies on site believe that the global supply chain of digital technology will increasingly rely on China within five years; Overall, foreign-funded enterprises still look forward to achieving more cooperation with China.

According to reports released by some foreign business associations in China, most of the interviewed foreign companies still have a positive outlook on China. More than half of German companies plan to increase their investment in China in the next two years; Nearly 60% of American companies hold a positive attitude towards China's economic recovery; 86% of British companies are optimistic about the long-term potential of the Chinese market; More than 90% of Japanese companies plan to expand or maintain their business in China.

Monica, the President of the Asia Pacific Economic Cooperation (APEC) National Center in the United States, also shared her investigation into the US business community with reporters.

Monica Hardy Wheley, President of the Asia Pacific Economic Cooperation (APEC) National Center in the United States: Most American businesses doing business with China widely recognize that China is an important component of the Asia Pacific market and supply chain. When the Chinese economy is vibrant, other parts of the Asia Pacific region, including the United States, will be doing well.

A recent survey report by the China Council for the Promotion of International Trade also showed that 92.4% of foreign-funded enterprises surveyed stated that China's position in its global investment decisions has not declined. Representatives from business communities in multiple countries have expressed confidence in China's economic development and will continue to deepen their efforts in the Chinese market.