Multinational companies are experiencing sustainable growth in China, with new opportunities on the horizon, according to a report released at the opening ceremony of the fifth Qingdao Multinationals Summit in east China’s Qingdao City on Wednesday.
In the decade preceding 2023, China’s use of foreign direct investment remained high, with industry structures and regional layouts continuously optimized, the report highlighted. Notably, China’s newly established foreign-funded enterprises increased by 14.2 percent year-on-year in the first half of 2024.
The report emphasized that the development of multinational companies in China is an integral part of Chinese modernization. Over the past five years, foreign-invested enterprises have contributed significantly to the country’s economy, paying more than 17 percent of the total tax revenue and accounting for over 30 percent of China’s total trade volume.
Yu Zirong, vice president of the Chinese Academy of International Trade and Economic Cooperation, noted that multinational companies have continued to reap benefits by investing in China, including increased profits, optimized cost structures, and improved resource allocation. “From 2018 to 2022, the annual average growth rate of operating revenues for foreign-invested industrial enterprises in China reached 4.1 percent,” Yu said. These enterprises accounted for over 20 percent of the total operating revenues of industrial enterprises above the designated size, with profit margins remaining above 7 percent.
The report recommends that multinational companies further strengthen their confidence in investing in China and elevate the role and capacity of their China operations within their global strategies. It suggests actively aligning in six key areas: tapping into new consumption potential, integrating into the nation’s drive for common prosperity, focusing on new quality productive forces, seizing opportunities in green transformation, enhancing linkages within production and supply chains, and supporting China’s higher-level opening up.
The fifth Qingdao Multinationals Summit, running until August 29 in east China’s Shandong Province, serves as a significant platform for dialogue and practical cooperation between China and multinational corporations. Since its inception in 2019, the summit has been instrumental in fostering partnerships and exploring new avenues for growth.
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China's newly established foreign-funded enterprises grow by 14% yoy
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