According to China Daily, February 12, 2026
Multinational companies (MNCs) are increasing their investments in China in 2026, signaling strong confidence in the country’s economic vitality, innovation capabilities, and ongoing market-opening reforms.
Recent projects highlight this trend: French tire and mobility giant Michelin launched the second phase of its Shanghai plant with a total investment of 3 billion yuan ($434 million). German chemical producer Covestro AG started operations at a new facility in Zhuhai, Guangdong province, while French automotive tech supplier Forvia Group is establishing a smart cockpit project for new energy vehicles in Changshu, Jiangsu province.
Experts note a clear shift in strategy. “Foreign companies are increasingly targeting innovation-driven sectors such as new energy, green industries, and the digital economy,” said Liu Ying, researcher at Renmin University of China. KPMG China’s Jiang Liqin added that MNCs are moving from mere expansion toward profitability and efficiency, leveraging local innovations to enhance competitiveness.
Despite global investment uncertainty, China attracted 747.69 billion yuan in foreign direct investment in 2025, with 241.77 billion yuan directed to high-tech sectors, according to the Ministry of Commerce.
In healthcare, Swedish company Elekta is deepening its footprint, using China both as a production hub and innovation base. Elekta’s Beijing facility now serves global markets, manufacturing a full range of radiotherapy equipment, with over 60% exported to more than 120 countries. Its Shanghai software center drives technological innovation for local and international markets.
The chemical sector also demonstrates strong opportunity. According to Xia Fuliang, chairman of the Association of International Chemical Manufacturers, China accounts for about 42% of global chemical output, expected to near 50% by 2030. Demand for specialty chemicals is projected to rise in industries such as new energy vehicles, pharmaceuticals, healthcare, and high-end equipment.
Overall, MNCs see China’s 15th Five-Year Plan (2026–30) as providing a clear roadmap for high-quality development, market reforms, and policy stability. By focusing on innovation-driven sectors and leveraging China’s expanding domestic demand, global companies are positioning themselves to capture long-term growth opportunities in one of the world’s largest and most dynamic markets.