Foreign firms optimistic over future investments

Employees work on the intelligent equipment production line of a foreign-funded company in Rongcheng, Shandong province. LI XINJUN/FOR CHINA DAILY

More than 80 percent of foreign companies operating in China anticipate that their investment profitability in the country will remain steady or increase this year, according to a survey report released by the China Council for the Promotion of International Trade on Friday.

The research work, conducted by the country's top foreign trade and investment promotion agency of nearly 800 foreign companies in 26 provinces, autonomous regions and municipalities between April and June, found that nearly 70 percent on surveyed foreign-funded businesses are optimistic about their outlook for the Chinese market for the next five years.

Over 90 percent of respondents believe that the Chinese market's attractiveness will either increase or remain stable.

Among the surveyed foreign firms, 59.82 percent are engaged in processing and manufacturing businesses, while 64.6 percent are small, medium and micro-sized enterprises.

The primary reasons cited by these global companies for investing in China include "large market size", "multiple preferential policies" and "complete industrial and supply chains", accounting for 77.54 percent, 53.36 percent and 39.91 percent, respectively, said the survey results.

As for development opportunities, foreign respondents said that the high-quality innovation environment, continuous opening-up in central and western regions and the booming digital economy will offer strong momentum for their growth in China, said Sun Xiao, the spokesman for the Beijing-headquartered CCPIT.

With China's overall economic recovery and improvement, the confidence of multinational corporations in investing in the country has remained stable, and there has been no change in the overall trend of foreign companies expanding their investments in China, he added.

China has implemented several policy measures to drive its economy toward high-quality development. The country is strategically shifting its focus toward cultivating new strengths centered around technologies, standards, brands and services, thereby facilitating a multifaceted transition in its economic landscape, said Chen Wenling, chief economist at the China Center for International Economic Exchanges in Beijing.

Since the start of 2023, executives from multinational corporations, such as Siemens AG, ASML Holding NV, Tesla Inc and Visa Inc, have been engaging in a notable trend of consecutive visits to China, displaying their strong enthusiasm to explore and expand investments in the Chinese market, she added.

Eager to expand its market share in the country, luxury parka manufacturer Canada Goose plans to open more stores in China to meet the soaring demand for its products this year and beyond.

Foreseeing a 40 percent year-on-year growth in the fourth quarter of its 2023 fiscal year on the Chinese mainland, Larry Li, president for China unit at the Canadian company, said that Canada Goose will add eyewear, luggage and household goods to its product portfolio in the Chinese market within the next five years.

Thyssenkrupp, a German industrial engineering conglomerate, announced earlier this week that one of its subsidiaries from the high-end manufacturing sector inaugurated a new production line with investment totaling 500 million yuan ($69.9 million) to produce more seamless rolled rings for large megawatt wind turbines at its plant in Xuzhou, East China's Jiangsu province.

This is the fourth time the company has invested in the factory since its establishment in 2005. The new investment will boost the plant's production capacity by 150,000 metric tons.

"China is one of the most important markets for our business. Wind turbines are gradually designed with a larger size and more megawatts. Seamless rolled rings of high quality are one of the key factors for safe operation," said Winfried Schulte, CEO of Thyssenkrupp Rothe Erde, a sub-brand of Thyssenkrupp that supplies bearings and seamless rolled rings to various industrial applications.