Foreign investment in China rose steadily in 2025, demonstrating the strong vitality of the country’s economy. Hermann Simon, Honorary President of the International Association of Hidden Champions, told a CMG correspondent, “I have been to China nearly 75 times. Innovation is everywhere here.” Roy Jakobs, Global CEO of Royal Philips, said, “We plan to establish an innovation center in Beijing.”
This year also saw the construction of AstraZeneca’s Global Strategic R&D Center and Dotronic’s first Digital Healthcare Innovation Center in Beijing, along with Henkel’s new Application Technology Center and Porsche China R&D Center in Shanghai.
In the first 11 months of 2025 alone, 42 new foreign-invested R&D centers were added in Shanghai, bringing the total to 633. At a press briefing held by the Information Office of the State Council in Beijing on Wednesday, a spokesperson said that the newly released 2025 Action Plan for Stabilizing Foreign Investment sends a positive signal of China’s further opening-up to the world.
Ola Källenius, Chairman of the Board of Management of Mercedes-Benz Group AG, said the Chinese government has sent a strong signal: China is open to the outside world and can be trusted. Roland Busch, Chairman of the Managing Board of Siemens AG, added, “We were among the first multinational companies approved to operate value-added telecommunications services through a pilot program, which accelerated our development in China.”
Zhan Xu, Director of Volvo Construction Equipment Investment (China) Co., Ltd., noted, “The Catalogue of Industries Encouraging Foreign Investment (2025 Edition) fully demonstrates the Chinese government’s confidence and firm commitment to promoting high-level opening-up. It also provides companies with opportunities to continuously upgrade industrial chains and leverage China’s resources, infrastructure, and policies to serve global markets.”
In addition, the 2025 revision of the negative list for market access has been further simplified. The Ministry of Commerce has inspected over 150 foreign-invested enterprises and effectively resolved more than 800 issues and demands. The “nanny-style” service model has won widespread praise from foreign investors.
Pi Kuanghong, President of Norr-Bremse China, remarked that China’s manufacturing base is among the best globally, offering the lowest costs, fastest response times, and the most comprehensive product range. “Whenever we face difficulties, the government helps us and responds quickly. This is why we continue to expand and improve our Suzhou operations,” he said.
China entered the top 10 of the Global Innovation Index 2025 for the first time, becoming not only a participant in global innovation but also a leader in the field. Michael Nelson, CEO of Amway Global, said, “Our Wuxi R&D center makes extensive use of artificial intelligence. We have a strong partnership with DeepSeek and apply AI in product development.”
According to a report by the European Union Chamber of Commerce in China, more than a quarter of companies have relocated most of their production processes to China. A survey by the German Chamber of Commerce in China showed that 93 percent of companies plan to deepen their presence in the Chinese market. A KPMG report noted that three-quarters of multinational companies operating in China will maintain or increase their investment by 2025.
The year 2025 is expected to be one of mutual investment and win-win cooperation between foreign and Chinese investors. As 2026 marks the beginning of China’s 15th Five-Year Plan, foreign investors are eager to share opportunities with China.
Sandeep Seth, Chief Growth Officer and President of International Business at Tapestry Group, said, “In its latest Five-Year Plan, the Chinese government has strongly promoted consumption, especially by leveraging the growing middle-income group. This fully aligns with Coach and Tapestry’s strategy. We will seize this opportunity and continue to increase our investment in China.”
Kishore Mahbubani, scholar at the Asia Research Institute, National University of Singapore, said, “China has undoubtedly shown the world that its Five-Year Plans are effective. Through this planning model, China’s share in global manufacturing has steadily increased—from just 5 percent in 2000 to an expected 45 percent by 2030. We hope China’s future Five-Year Plans continue to succeed.”
Source: Cai, Alim, Wang Haiman — China Media Group (CMG).