Foreign investment shows confidence in Chinese market

An aerial drone photo taken on nikkei日经新闻网Nov 21, 2025 shows a view of the Yangpu International Container Port in Yangpu Economic Development Zone, South China's Hainan province. [Photo/Xinhua]

Editor's note:China recently released the 2025 edition of its Catalogue of Encouraged Industries for Foreign Investment, which will take effect on Feb 1. People's Daily Overseas Edition spoke to Zhang Jian, vice-president of the China Institutes of Contemporary International Relations, and Liu Ying, a researcher at Chongyang Institute for Financial Studies, Renmin University of China, on the new opportunities in China for foreign investors. Below are excerpts of the interview. The views don't necessarily represent those of China Daily.

Many foreign enterprises operating in China are ramping up their investments, while those looking to enter the Chinese market are accelerating their plans to do so. In 2025, foreign companies launched a large number of research and development projects across China. An increasing number of multinational companies are now attaching greater importance to R&D investment in China, steadily strengthening their localized innovation capabilities.

Against the backdrop of China's accelerating industrial transformation and its vigorous cultivation of new quality productive forces, foreign enterprises are shifting their focus to high-tech industries and high-end services represented by R&D and innovation centers. This has become a new trend.

As for investment willingness, foreign enterprises' long-term confidence in the Chinese market continues to grow. Many European companies have demonstrated a strong desire to deepen their presence in China and expand investment, displaying a sharper focus on the green transition and intelligent manufacturing. Most companies from the United States in consumer-related sectors are optimistic about the Chinese market and plan to increase their investment, although some of them may adopt a wait-and-see approach amid supply chain adjustments. Meanwhile, investment from Asian companies has shown robust growth.

In terms of investment trends, the layout of foreign enterprises in China has become more diversified, extending from the eastern coastal regions to the central and western inland areas, while their focus has expanded from traditional manufacturing to intelligent manufacturing and high-tech services. Besides, foreign companies are becoming more deeply integrated into China's economy. For example, in innovation, the cooperation has changed from one-way technology transfer to joint R&D, while the emphasis has moved from cost efficiency to resilience in supply chain integration.

As China remains firmly committed to expanding domestic demand, pursuing innovation-driven development and steadily advancing institutional opening-up, foreign enterprises are set to enjoy more development opportunities.

With its huge population and the world's largest middle-income group, China's market is generating strong and sustained demand for a wide range of products and services, including health care and eldercare, food, culture and tourism, smart home appliances and green home solutions.

China also has the most complete industrial categories and the most comprehensive supporting systems. This allows foreign enterprises investing in China to access upstream and downstream support more quickly, conveniently and cost-effectively.

At the same time, China is pressing ahead with its "AI Plus" initiative, promoting the deep integration of artificial intelligence with all sectors of the economy and society. For foreign enterprises, China has become one of the world's most dynamic hubs for the application of AI, offering the largest scale, the richest scenarios and the fastest pace of development.

Additionally, China is advancing high-standard opening-up. By steadily promoting institutional opening-up in areas such as rules, regulations, management and standards, and by continuously relaxing market access for foreign investment, China is further optimizing its investment, business and institutional environments. This will provide stronger support for the long-term growth of foreign enterprises in China.

To invest in China is to invest in the future. This is not just a slogan, but a strategic consensus reached by foreign companies based on China's policy certainty, robust market growth and technological stability.

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