Global companies are increasingly transforming their China strategies — moving from manufacturing and sales to innovation and global collaboration, as they tap into the country’s fast-growing technology ecosystem .
Ola Källenius, chairman of the Board of Management of Mercedes-Benz Group AG, recalled investing in Chinese autonomous driving startup Momenta in 2017 when it was still in its early stage. That early investment has since evolved into deep co-creation, with jointly developed intelligent driving systems now featured in Mercedes-Benz vehicles.
During a visit to Beijing in February 2026, German Chancellor Friedrich Merz experienced the intelligent assisted driving system in the new S-Class and praised the cooperation between German manufacturers and Chinese technology .
From Investment to Co-Creation
The shift from “Made in China” to “Created in China” is evident across industries.
Volkswagen Group recently rolled out its first jointly developed model with Chinese EV maker XPeng, reflecting deeper integration between global automakers and China’s innovation ecosystem .
In pharmaceuticals, Sanofi launched its first China Innovation and Operation Center in Chengdu, while Novartis announced a major expansion of its R&D and manufacturing capacity in China .
Tesla also expanded its supercharging infrastructure in Chongqing, marking its largest single service-area supercharging project in China .
Industry experts note that multinational companies are increasingly positioning China as a core R&D and industrial collaboration hub within their global strategies. According to Deloitte China’s CEO Liu Minghua, firms are shifting from “In China, for China” to “In China, for the world” .
China as a Global Innovation Engine
Källenius emphasized that innovations developed in China are increasingly being exported globally. For example, high-end rear-seat entertainment systems and advanced parking algorithms developed by Mercedes-Benz’s China R&D team are now being deployed worldwide .
Beyond automotive, innovation is accelerating in areas such as energy transition, biotechnology, digital economy and advanced manufacturing.
China’s rising innovation strength is also reflected in patent data. In 2025, China became one of the top three sources of patent applications at the European Patent Office for the first time, accounting for 10.9 percent of total filings — the fastest growth rate among the top 10 countries .
Strong Policy and Investment Momentum
Official data shows that 8,631 new foreign-invested enterprises were established in the first two months of 2026, up 14 percent year on year. High-tech industries attracted over 63 billion yuan in foreign direct investment during the same period, accounting for nearly 40 percent of total FDI .
China’s institutional opening-up and stable operating environment continue to provide multinationals with long-term strategic confidence.
For many global firms, investing in China is no longer optional. As Källenius stated, China is a long-term commitment — a dynamic innovation market that supports both domestic growth and global competitiveness
