Why China has become a fertile ground for foreign investment

In the first year of the 15th Five Year Plan, from cutting-edge industries to high-end manufacturing, from research and development centers to regional headquarters, foreign-funded enterprises continue to increase their presence in China and strengthen their muscles and bones in the "gym" of the Chinese market. Data shows that in the first five months of this year, 25297 foreign-invested enterprises were newly established nationwide, a year-on-year increase of 5.3%; The actual amount of foreign investment used was 327.29 billion yuan.

China has become a preferred investment destination for multinational corporations based on a set of comprehensive advantages that are difficult to replicate. Firstly, there is the advantage of scale. From the demand side, the super large domestic demand market formed by a population of over 1.4 billion is unleashing enormous consumption potential, especially in the fields of new energy vehicles, smart homes, medical and health, which provide solid support for foreign-funded enterprises to make profits in China. From the supply side, China's supply chain system is complete, with a complete manufacturing system and strong production capacity, which can significantly reduce the production costs and coordination difficulties of multinational corporations.

Next is the advantage of innovation. Rich application scenarios, rapidly iterating market pace, and highly skilled industrial workers make China a fertile ground for business model innovation and a source of technological breakthroughs. Foreign funded enterprises can quickly capture new demands, validate new solutions, and run new tracks.

Once again, the most crucial factor is the environmental advantage. China has a stable political and social situation, and is steadily expanding institutional openness in terms of rules, regulations, management, standards, etc. It actively creates a market-oriented, rule of law, and international first-class business environment, providing good expectations for the long-term development of foreign-funded enterprises in China. Recently, the Ministry of Commerce, together with the National Development and Reform Commission, the Ministry of Finance and other departments, jointly issued the "Action Plan for Utilizing Foreign Investment to Stabilize and Promote Excellence", once again releasing full sincerity in attracting investment.

The value of "investing in China is investing in the future" in the cooperation story written by China and foreign countries continues to rise. By deepening their investment in China, foreign-funded enterprises can not only acquire new technologies and market opportunities, but also enhance their global competitiveness through China's rapid development. For our country, the continuous inflow of foreign capital brings capital, technology, and management experience, and further promotes economic transformation and upgrading, as well as the improvement of the level of openness. This win-win cooperation model is the underlying logic of investing in China.

With a long-term perspective, we need to closely align with the direction of domestic industrial upgrading, actively guide foreign investment to invest more in key areas such as advanced manufacturing, high-tech, energy conservation and environmental protection, and modern service industries. On this basis, we will further leverage the unique role of foreign investment in technology spillover, innovation synergy, and international market expansion, injecting sustained momentum into cultivating and strengthening new quality productive forces in China.