Global firms seeking fresh opportunities in China

China’s commitment to opening up its economy will encourage new industrialisation, green growth and digital transformation, according to executives of leading multinational corporations.

Speaking at the China Development Forum 2025, held recently in Beijing, company bosses said that as China shifts toward innovation-driven and green growth, foreign companies are committed to working with local partners, investing in high-end manufacturing, artificial intelligence and the service industries.

At the forum, Li Yongjie, deputy international trade representative of the Ministry of Commerce, said China will further advance comprehensive pilot programmes to open up its services sector, promote the opening of industries such as the internet and culture, and expand access to key areas including telecommunications, healthcare and education.

Christophe Weber, President and CEO of Takeda Pharmaceuticals, said his company will make targeted investments in data and digital solutions in China to unleash the power of new technology for the future of healthcare.

In January, the Japanese company announced the signing of an investment co-operation agreement to establish its China innovation centre in Chengdu, Sichuan province. The facility will focus on digital healthcare innovation and will develop solutions using big data and artificial intelligence.

Danish technology and engineering conglomerate Danfoss Group has also seen strong momentum in sectors aligned with China’s development priorities, with 70% year-on-year growth in its data centre business and 29% in its marine business in China in 2024.

Kim Fausing, President and CEO of Danfoss, said the group will further scale up its presence in China in 2025 and beyond. The company will start mass production later this year at its campus in Nanjing, Jiangsu province, producing electric and hybrid power train systems. This follows the launch in January of its newly upgraded application development centre in Suzhou, Jiangsu.

Acknowledging the shift in foreign investment patterns in China, John Quelch, executive vice-chancellor and American president of Duke Kunshan University in Jiangsu, described China’s renewed commitment to opening up to foreign investment — backed by consistent government support and a more level playing field — as “highly encouraging”.

He said: “With the country’s growing innovation capabilities, foreign investment is increasingly focused on collaborative research and development activities, rather than being limited to manufacturing alone.”

A total of 7,574 foreign-invested enterprises were newly established in China in the first two months of this year, representing year-on-year growth of 5.8%, statistics from the Ministry of Commerce showed.

Meanwhile, foreign-invested businesses in China saw their export value grow 6.9% year-on-year to 1.08 trillion yuan ($148.9 billion), according to the General Administration of Customs.

Expressing concern over rising global protectionism, Oliver Zipse, board chairman of Germany’s BMW AG, said that economic growth thrives through opening, not closing.

Zipse warned that such measures will diminish prosperity for all, emphasising that the best response to decoupling or de-risking is more co-operation, not less.

Small firms benefiting from better access to credit

Official data showed that China saw strong growth in amount of loans to small and micro companies by the end of 2024 amid government efforts to encourage inclusive financing.

By the end of the fourth quarter (Q4) of last year, the balance of loans issued by banking financial institutions to small and micro firms totalled 81.4 trillion yuan (£8.8 trillion), according to the National Financial Regulatory Administration.

The outstanding loan to small and micro companies with a credit limit of 10 million yuan or less reached 33.3 trillion yuan, surging 14.7% year-on-year, data from the administration showed.

China has been stepping up financial support for the country’s small businesses, with reserve requirement ratio cuts and policy interest rate reductions to lower borrowing costs and boost the vitality of the small market players.

In 2024, the number of registered enterprises in China reached 61.226 million, most of which were middle, small and micro-sized businesses.