According to a report by China Daily on March 5…
Multinationals see China as both a critical market and an emerging innovation hub as Beijing signals continued policy stability.
China’s renewed commitment to expanding economic opening-up is strengthening confidence among multinational companies, as executives and analysts say the country remains central to global supply chains and technological innovation despite rising geopolitical tensions.
The message was reinforced in the government work report delivered at the annual session of the National People’s Congress, which outlined plans to deepen reforms aimed at attracting foreign investment and improving the business environment for global firms.
Under the plan, China will expand two-way investment cooperation, ensure national treatment for foreign-funded enterprises and introduce an updated Catalog of Encouraged Industries for Foreign Investment, guiding overseas capital toward strategic sectors.
Key Takeaways
Policy continuity: Beijing is signaling long-term commitment to opening its market to global capital.
Supply chain centrality: China remains a critical manufacturing and logistics hub in global production networks.
Innovation shift: Multinationals increasingly view China not only as a consumer market but as a center for technological development.
Stability Amid Global Uncertainty
For multinational companies navigating an increasingly fragmented global economy, China’s policy direction provides an important anchor for long-term planning.
Denis Depoux, global managing director of the consulting firm Roland Berger, said global companies are increasingly compelled to maintain operations across multiple economic blocs.
“As the world fragments into competing economic spheres, multinational companies must maintain a presence in both markets,” Depoux said. “China can act as a bridge connecting Asia and the Global South.”
While competition with Chinese companies has intensified, remaining active in the Chinese market remains essential for firms seeking to stay competitive globally, he added.
A Strategic Hub in Global Supply Chains
Economists also note that China’s deep integration into global production networks continues to influence investment decisions.
Zhang Shuibo, professor of economics at Tianjin University, said advancing high-quality reform and opening-up will help China mitigate external risks while reinforcing its global supply chain role.
“China’s position in global manufacturing and logistics networks continues to shape multinational companies’ strategies,” Zhang said.
From Consumer Market to Innovation Center
For many multinational corporations, China’s strategic value has evolved significantly over the past decade.
Rather than serving only as a massive consumer market, the country is increasingly seen as an innovation hub that influences global industrial competition.
Xia Fuliang, head of the China unit of German specialty chemicals group Evonik Industries, said China’s rapid progress in sectors such as green technology, shipbuilding, artificial intelligence and high-end services is reshaping the global competitive landscape.
Executives say technological momentum in these industries is also generating new opportunities for international collaboration.
Similarly, Yin Zheng of Schneider Electric said China has become a key pillar in the company’s global strategy.
As artificial intelligence accelerates energy transition and industrial upgrading, China has emerged as a major global center for AI development, Yin said.
“We believe China has become a major center of global industry and a powerful engine of growth,” he said. “Investing in China means investing in the future.”
Investor View
For global investors and multinational corporations, China’s continued opening-up sends a clear signal: the country intends to remain deeply integrated with the global economy while upgrading its industrial base.
Despite geopolitical headwinds and shifting supply chains, China’s combination of market scale, manufacturing capability and technological advancement continues to make it one of the world’s most influential investment destinations.