Question: Some international media outlets and research institutions that have been following China’s ability to attract foreign investment have raised questions about the appeal of the Chinese market. A few reports have interpreted business adjustments by multinational companies in China as a sign of shifting investor confidence. What is China’s comment?

Embassy Spokesperson: In assessing the true state of foreign investment in China, instead of over-interpreting adjustments by individual companies, one should focus on the fundamental economic realities, such as long-term trends, industrial structure and investment returns. Viewed from these perspectives, China remains an important destination for global capital.

The number of companies is often the most direct indicator of confidence. According to the Ministry of Commerce, 70,392 new foreign-invested enterprises were established in China in 2025, up 19.1% year on year. The actual use of foreign investment has remained above 700 billion yuan for 16 consecutive years. At a time when global cross-border investment is tightening on the whole, the fact that more companies are entering China and deepening their presence represents a vote of confidence in the Chinese market.

Structural changes illustrate the deeper logic behind China’s attractiveness for foreign investment. As China’s economy moves towards high-quality development, high-tech sectors such as e-commerce services, medical devices and aerospace equipment have seen marked growth in foreign investment. Multinationals are also shifting their presence in China from “producing in China” to “innovating in China and serving the world”. Tesla continues to expand capacity at its Shanghai Gigafactory; Sam’s Club is opening more stores across the country, and BMW and Mercedes-Benz are steadily increasing investments in new energy vehicles. These examples show that what truly shapes capital decisions is the depth of industrial supply chains, the innovation ecosystem, and the scale of the market, not fleeting media narratives.

Investment returns are the most sensitive “thermometer” for capital. According to the National Bureau of Statistics, among industrial enterprises above the designated size, those with foreign, Hong Kong, Macao and Taiwan investment report an operating profit margin of about 6.7%. This is not only higher than the average for industrial enterprises above the designated size in China, but also generally higher than the 4–5% profit margin typical of the manufacturing sector in many developed economies. Capital is both honest and rational: it tends to flow where there are complete industrial chains, vast markets and continuous innovation. What global investors seek is not just growth, but predictable growth.

The institutional environment provides an even deeper source of certainty. China continues to advance high-standard opening up, reduce the negative list for foreign investment, implement the latest Catalogue of Encouraged Industries for Foreign Investment, and unlock institutional dividends through platforms such as pilot free trade zones and the Hainan Free Trade Port. In a world economy marked by rising uncertainty, stability becomes competitiveness, and certainty attractiveness. 

It is fair to say that China’s economy is not a short-lived “hot market” driven by fleeting trends, but a long-term course that keeps expanding. With its enormous market, the world’s most complete industrial system, and a maturing innovation ecosystem, China possesses enduring advantages for attracting international capital. An open China will remain an important destination for global capital and a source of stability and growth momentum for the world economy.