China continues to attract multinational companies, with newly established foreign-funded enterprises increasing by 14.2% year-on-year in the first half of 2024. This growth was highlighted in a recent report presented at the fifth Qingdao Multinationals Summit in Qingdao City, east China's Shandong Province.
Over the past decade, China has seen high levels of foreign direct investment, leading to optimized industry structures and regional layouts. The report emphasized that in the past five years, foreign-invested enterprises have consistently contributed more than 17% of the country's total tax revenue and accounted for over 30% of China's total import and export volume.
Yu Zirong, vice president of the Chinese Academy of International Trade and Economic Cooperation, noted that multinational companies benefit significantly from investing in China through increased profits, optimized cost structures, and improved resource allocation. From 2018 to 2022, the annual average growth rate of operating revenues for foreign-invested industrial enterprises reached 4.1%, representing over 20% of the total operating revenues of large industrial enterprises, with profit margins exceeding 7%.
The report encourages multinational companies to strengthen their investment confidence in China and enhance the role of their China operations within their global strategies. It suggests focusing on new consumption potentials, integrating into the nation's drive for common prosperity, emphasizing new quality productive forces, seizing opportunities in green transformation, enhancing production and supply chain linkages, and supporting China's higher-level opening up.
The Qingdao Multinationals Summit, running until August 29, has been a pivotal platform for dialogue and cooperation between China and multinational corporations since its inception in 2019.
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China's newly established foreign-funded enterprises grow by 14% yoy
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