According to KPMG's newly released 2025 China Outlook for Multinational Corporations, 94% of surveyed MNCs continue to invest in and bet on the Chinese mainland market for 2026. Three quarters plan to maintain or increase their stakes in Chinese mainland enterprises next year.
As local competition heats up, about 60% of respondents say they have pivoted from pure expansion to a profitability-first approach. Meanwhile, 83% report they have localized key operations such as manufacturing, supply chains and research and development.
'In consumer-facing sectors, MNCs are pursuing vertical integration by acquiring distributors, agents and original equipment manufacturers to better understand and serve Chinese consumers,' says Mark Harrison, partner and co-head of multinational clients at KPMG in the Chinese mainland.
International institutions echo this bullish view. At Caijing magazine's Annual Conference 2026, Marshall Mills, Chief Representative of the International Monetary Fund in the Chinese mainland, highlighted the economy's 'remarkable resilience' despite significant shocks.
Bloomberg's April report on how the Chinese mainland navigated trade frictions with the U.S. and rapid AI advances concluded that one key lesson is never to underestimate the market's capacity to adapt.
Even on the ground, this resilience shows: on December 24, 2025, heavy machinery loaded containers onto a China–Europe freight train at the China–Kazakhstan (Lianyungang) Logistics Cooperation Base in Jiangsu Province on the eastern Chinese mainland, underscoring the ongoing strength of cross-border trade.
With profitability, localization and integration at the forefront, MNCs appear more confident than ever in the Chinese mainland's economic outlook for 2026.
Reference(s):
Report: 94% of MNCs confident about China's economic outlook for 2026
cgtn.com
