Compiled from a report by China Daily on March 13.
As China enters the early stage of its 15th Five-Year Plan (2026–2030), multinational corporations are signaling strong confidence in the country’s economic resilience and its expanding role in global supply chains.
Executives from global companies say China’s combination of policy stability, manufacturing depth, innovation capacity and market scale is reinforcing its position not only as a major market but also as a critical node in global production, technology development and supply chain coordination.
Growth Target Signals Stability
China’s economy grew 5 percent in 2025, reaching 140.19 trillion yuan ($20.4 trillion). For 2026, policymakers have set a growth target of between 4.5 percent and 5 percent, supported by a planned fiscal deficit ratio of around 4 percent.
Global business leaders say the target reflects both realism and policy confidence.
Pablo Machado, Asia president of Brazilian pulp producer Suzano, said the clarity of China’s economic policy framework provides a strong signal of stability at a time when global demand remains uncertain.
For Suzano, China has long been its largest market and will remain central to its global strategy. The country’s push toward consumption upgrading and a green, low-carbon economy also creates new opportunities for bio-based materials and sustainable industrial products.
Similarly, Xie Xue, CEO of Vale China, described the growth target as both achievable and aligned with China’s long-term modernization goals.
China remains Vale’s largest market, accounting for 63 percent of iron ore sales and more than half of operating revenue last year. Stable growth and policy continuity therefore serve as an important anchor for the company’s global strategy amid geopolitical and economic uncertainty.
From “World’s Factory” to Supply Chain Innovation Hub
Executives increasingly describe China’s role in the global economy as evolving beyond its traditional identity as the world’s factory.
With exports rising 6.1 percent in 2025, foreign-invested enterprises increasing by 19.1 percent, and R&D intensity reaching 2.8 percent of GDP, the country is becoming a more integrated hub for manufacturing, innovation and supply chain management.
Wu Dongming, CEO of DHL Express China, said China is transitioning into a global supply chain innovation center, supported by its unmatched manufacturing ecosystem and rapidly expanding technology base.
For logistics companies, this transformation is reflected in the rising share of high-value and time-sensitive goods moving across borders, including advanced electronics, high-tech components and precision manufacturing products.
Suzano is also increasingly sourcing industrial equipment, production lines and key materials from China, not only for domestic operations but for deployment across its global network.
At the same time, collaboration with Chinese research institutions is expanding. Vale, for example, launched a joint laboratory for low-carbon and hydrogen metallurgy with Central South University to support decarbonization in the steel sector.
These partnerships highlight China’s growing role as a technology and innovation partner in global industrial transformation.
China as Market, Production Base and Innovation Center
For many multinational companies, China is no longer just a market or manufacturing base — it is increasingly all three at once.
Cheng Dandan, senior vice-president of global payments platform Payoneer, said more than one-third of the company’s revenue now comes from China, largely driven by the country’s vast ecosystem of small and medium-sized exporters.
China’s digital commerce infrastructure and manufacturing capabilities allow businesses to scale internationally without building a physical presence in every market.
“China has become simultaneously a market, a production base and an innovation hub,” Cheng said, reflecting the increasingly interconnected nature of global business operations.
Unified National Market Unlocks Domestic Demand
China’s domestic market is also becoming more integrated and powerful as structural reforms advance.
The country’s urbanization rate reached 67.9 percent in 2025, while total retail sales exceeded 50 trillion yuan, highlighting the scale of consumer demand.
Efforts to build a unified national market are helping reduce regional barriers, streamline logistics and lower compliance costs for companies operating across multiple provinces.
For multinational corporations, this integration simplifies nationwide operations while opening new growth opportunities in lower-tier cities and county-level markets, where consumption upgrading is accelerating.
DHL Express has expanded logistics service centers in multiple emerging cities to support growing import and export activities, as local manufacturers and consumers become more connected to global trade.
Linking Domestic Consumption and Global Trade
China is also strengthening the link between its domestic market and global trade networks.
Programs such as the consumer trade-in initiative, which generated over 2.6 trillion yuan in sales in 2025, and initiatives like “Shopping in China” and “Export to China” aim to boost both domestic consumption and international trade flows.
Logistics providers are responding by expanding aviation networks and infrastructure to facilitate faster cross-border delivery.
For global payments platforms, the rise of Chinese brands expanding overseas is creating demand for more sophisticated cross-border financial infrastructure, including multi-currency settlement and compliance-focused payment systems.
Green Transition and AI Drive New Partnerships
China’s push toward green development and advanced technologies is also opening new areas of collaboration between multinational companies and Chinese partners.
In 2025, China reduced energy intensity by 5.1 percent, increased the share of non-fossil energy to 21.7 percent, and expanded new energy storage capacity beyond 130 gigawatts.
Multinational companies are increasingly aligning their sustainability strategies with China’s green transformation.
Suzano has partnered with Chinese universities and research institutions to promote decarbonization in the pulp and paper industry, while also exploring AI applications for biodiversity monitoring.
DHL Express is accelerating the electrification of its delivery fleet in China. By 2025, more than 30 percent of its vehicles in the country were electric, with a target of 60 percent by 2030.
The company is also expanding green logistics services that allow customers to reduce supply chain emissions through the use of sustainable aviation fuel.
A Strategic Anchor in an Uncertain Global Economy
For multinational corporations navigating an uncertain global landscape, China continues to provide a rare combination of scale, stability and long-term growth potential.
Executives say the country’s evolving role — as a major market, innovation center and supply chain hub — is making it increasingly central to global corporate strategies.
As global supply chains continue to adapt, China’s economic transformation is positioning it not only as a manufacturing powerhouse, but as a key driver of the next phase of global industrial and technological development.