Foreign Companies Show Confidence in China’s Robust Industrial Chains
Foreign Companies Show Confidence in China’s Robust Industrial Chains

Foreign Companies Show Confidence in China’s Robust Industrial Chains

China’s resilient and reliable supply chains have become an attractive magnet for an increasing number of foreign-invested companies, leading them to bolster their investments in the Chinese market, which now offers a more favorable business environment.

Official statistics indicate that a significant surge in foreign business interest has been witnessed in the first half of the year, with 24,000 new foreign firms establishing themselves in China, marking a remarkable 35.7 percent year-on-year increase. During this period, foreign direct investment from developed countries, such as Britain and Germany, has experienced rapid expansion, according to reports from the Ministry of Commerce (MOC).

As a global manufacturing powerhouse, China proudly encompasses all industrial categories listed in the United Nations’ industrial classification. Coupled with a vast consumer base of 1.4 billion people, this vast market has intensified the motivation for foreign companies to invest in the country.

Karl Froehlich, a board member of HA-BE Mechanical Components (Taicang) Co., Ltd, a German sheet metal parts producer, highlighted the “highly competitive” industrial chain within the Chinese industry sector as the driving force behind their sustained double-digit growth in the Chinese market over the past five to six years. He credited their success to the swifter and superior quality deliveries from suppliers and the growing customer demand for their products.

Froehlich also emphasized the remarkable shift toward partnership within the market, which has significantly improved communication and problem-solving capabilities along the industrial chain over the last decade. This positive trend of integrity and unity within the industrial chain is expected to further propel business growth in the Chinese market.

Similarly, Australian company BioGenesis Group, specializing in health, superfood products, and agricultural technologies involving natural algae, aims to expand its research and development (R&D) capacity, a core competence of the company, by investing in China. Demonstrating unwavering confidence in China’s immense potential, Zhang Wenbin, CFO of the group, revealed plans to establish an R&D center through an industry-academia-research cooperation mechanism.

Zhang cited China’s ability to provide up-to-date healthcare philosophies and abundant clinical data as crucial factors that will enable them to develop healthcare products better suited for Asian consumers.

With China’s improved business environment and a shortened negative list for foreign investment access, foreign firms have significantly increased their investment initiatives in the Chinese market. MOC data reveals substantial investment growth from countries such as France, Britain, Japan, and Germany, with surges of 173.3 percent, 135.3 percent, 53 percent, and 14.2 percent, respectively, during the first half of the year.


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