China's resilient industrial chain, pioneering creativity and incentive policies are making it a compelling destination for international investors to tap growth potential and grab market share, said a China Media Group (CMG) commentary published on Wednesday.
An edited English-language version of the commentary is as follows:
"Over the past 25 years, I have visited China more than 10 times with the same goal each time: to get closer to China," Walter Doring, chairman of the German Hidden Champions Association, told CMG's The Real Point commentary on the sidelines of the 24th China International Fair for Investment and Trade (CIFIT) held in the eastern city of Xiamen from Sunday to Wednesday. Doring believes that China is one of the largest markets globally, and it's difficult for a company to become world-leading without connections to the Chinese market.
The just concluded CIFIT attracted nearly 80,000 exhibitors from 120 countries and regions and saw a concentrated gathering of international "hidden champions" in China. Preliminary statistics showed that 688 cooperation agreements have been inked, with planned investment nearing 490 billion yuan (over 68 billion U.S. dollars). The four-day event served as a crucial window for foreign investors to understand China and explore Chinese opportunities.
The vast Chinese market has always represented a significant global opportunity. While forging "new quality productive forces", the Chinese market is showing intriguing characteristics.
In the production sector, industrial gases are regarded as the "blood" of modern industry. "As China advances a comprehensive green transition, there are broad prospects for clean energy development and carbon capture and storage, creating enormous market opportunities for industrial gas technologies," said Feng Yan, vice president of Air Products and Chemicals China branch.
On the consumer front, China's evolving consumption concepts are driving demand for high-quality products and services. "Chinese consumers are increasingly focused on smart home technology, health products, and green consumption, providing development opportunities for European companies in China," said Klaus Zenkel, vice president of the European Union Chamber of Commerce in China.
China's remarkably resilient industrial and supply chains have provided powerful guarantee for foreign investment. Many foreign investors have praised China's complete industrial system, cost-effectiveness, advanced smart manufacturing technology, and high-quality workforce, which help enhance production capacity.
More noteworthily, as innovation has become a pivotal driving force of China's economic growth, a surging number of foreign companies are taking China as innovation-provoking source. Florian Enders, R and D director of energy company WataS in Saxony, Germany, said that one of the goals for his China trip is to find strategic partners to combine China's solar panel technology with the company's cooling systems, thereby enhancing product efficiency and performance.
Lured by China's creativity, large groups of foreign enterprises are setting up Research and Development and innovation centers here.
P4 Precision Medicine Accelerator from the UK is an incubator platform for life science startups. In April this year, the company launched its innovation center in Beijing. Co-founder Nathan McNally said they have already established partnerships with Chinese research institutions. By leveraging China's research competency, infusing extensive clinical samples and rich application scenarios, they aim to accelerate the application of innovative technologies, establish a solid presence in China, and expand larger market shares.
China's supply chain resilience is also mirrored by foreign trade figures: its total goods imports and exports expanded 6 percent year on year in the first eight months of this year, with exports surging by 6.9 percent. Janos Suga, tender director at Hungarian construction company Market Epito Zrt, expressed hopes to strengthen cooperation with Chinese partners and bring more excellent products and projects back to Europe.
Driven by zeal in investment, the number of newly established foreign-invested enterprises in China rose 11.4 percent from January to July this year. They also reported improved operating performance. The profits of foreign-invested industrial enterprises above the designated size (those with annual main business revenue of 20 million yuan or more) grew 11.4 percent in the first half of this year. The substantial returns from their operations in China are a major factor driving foreign firms to scale up investments.
The "China Two-Way Investment Report 2024" released at the CIFIT shows that China retained its position as the world's second-largest recipient of foreign investment in 2023, continuing to be a sought-after destination for global investors.
More favorable policies are in the pipeline. China has recently removed all restrictions on foreign investment access in the manufacturing sector, while also expanded pilot programs in the healthcare industry, including plans to allow wholly foreign-owned hospitals in multiple cities. Additionally, China's establishment of regular communication mechanisms between the government and foreign enterprises and other supportive measures have further strengthened foreign investors' confidence in developing their businesses in China.
As McNally put it, "China is highly open and cooperative, providing more opportunities for collaboration with other countries." Taking firm foothold in China and expanding globally, the foreign enterprises are serializing their stories of deeply plowing the Chinese market and sharing its development dividends.
China's industrial resilience, innovation strength draws global investors: commentary
