According to a report in China Daily on February 7, 2026
Multinationals Expand Production and Services in China as Government Enhances Business Environment
China is ramping up efforts to attract foreign direct investment (FDI) as multinational corporations plan new factories and service-sector projects, signaling confidence in the country’s market potential and long-term growth prospects.
BEIJING — With global investment conditions remaining challenging, China is actively seeking new FDI commitments, government officials and foreign business leaders said. The Ministry of Commerce emphasized reforms to the foreign investment promotion system, institutional opening, and enhancements to the overall business environment, aiming to strengthen the country’s appeal among global investors.
“China will expand market access and open its services sector, including telecom, healthcare, and education, while supporting foreign companies to grow their value chains locally,” said Wang Ya, head of the Commerce Ministry’s foreign investment administration department.
Recent FDI data highlight China’s continued attractiveness: in 2025, actual FDI inflows reached 747.69 billion yuan ($107.74 billion), including 241.77 billion yuan directed to the high-tech sector. E-commerce services saw a 75% surge in foreign investment, medical devices rose 42.1%, and aerospace vehicles increased 22.9%.
Major multinational corporations are already acting on these opportunities. German chemical manufacturer Covestro AG recently inaugurated a thermoplastic polyurethane (TPU) plant in Zhuhai, Guangdong province, and plans to expand it in phases to a global-scale 120,000 metric tons per year by the 2030s.
“China’s rapid market growth and scalability make it essential to stay close to customers and remain deeply rooted in the local market,” said Monique Buch, Covestro’s chief commercial officer.