China essential to long-term global strategies of MNCs

China is increasingly seen as an essential component of multinational enterprises' long-term global strategy — a source of innovation, a testbed for new technologies and a market whose scale and dynamism are impossible to replicate elsewhere, business leaders said.

Their comments follow China's recent two sessions where policymakers vowed to nurture new growth drivers through the country's steadfast commitment to opening-up, which will translate into massive growth opportunities for foreign businesses.

In the Government Work Report delivered during the two sessions, China vowed to deepen reform of the institutional framework for promoting foreign investment and ensure national treatment for foreign-funded enterprises.

A new edition of the Catalog of Encouraged Industries for Foreign Investment will be implemented, and foreign-funded enterprises will be encouraged to reinvest in China and expand production locally, according to the report.

Saravoot Yoovidhya, CEO of TCP Group, the Thai conglomerate behind the energy drink brand Red Bull, said, "The Chinese government has released a series of positive signals that make foreign enterprises confident, capable and willing to invest.

"We will continue to increase investment in China, bringing more high-quality resources, advanced technology and innovative products into the Chinese market," Yoovidhya said. "We look forward to developing hand in hand with Chinese partners in a market environment of fair competition."

Accelerating the cultivation of new growth drivers, a priority outlined in this year's Government Work Report, is gaining momentum as a growing number of multinational corporations expand investments in artificial intelligence, new energy and other frontier sectors, while inaugurating new research and development centers that position China as a pivotal innovation hub for global enterprises.

Eric Chung, CEO of Nippon Paint China, said that by deepening the integration of AI with manufacturing, the company is actively advancing the construction of green intelligent factories, effectively enhancing its operational efficiency and low-carbon performance while exploring opportunities for industry-wide transformation and upgrading.

"Nippon Paint has always regarded China as its innovation home base," Chung said. The company orients its strategy around the development direction of new quality productive forces — a concept central to China's industrial policy that encompasses advanced technology, green development and high-quality growth.

"This positioning involves more than simply manufacturing in China for Chinese consumers. It means conducting R&D locally, tailoring products to local preferences, and leveraging China's innovation ecosystem to generate capabilities that can be applied globally," Chung added.

Yin Zheng, executive vice-president of China and East Asia operations at French industrial conglomerate Schneider Electric, said that China has become the world's first important "power nation", while also serving as a global hub for AI industry development.

These two major advantages complement and reinforce each other, not only shaping profound competitive strengths and broad development prospects, but also prompting the company to make China a key link in its global strategy, Yin said.

"Schneider Electric focuses on energy technology, deeply integrating AI capabilities with the energy transition," said Yin. "We are continuously promoting the large-scale industrial application of AI technology."

The company maintains an AI innovation team in China dedicated to building an AI ecosystem, Yin noted, adding that by integrating digital intelligence, automation and electrification technologies, the company aims to accelerate the large-scale production and consumption of new energy, deeply reshape the digital intelligence operations of key industries and drive efficiency improvement and carbon reduction across the entire industrial chain.

Some 75 percent of multinational companies planned to maintain or increase their China investment in 2025. A total of 83 percent have already localized or plan to localize key aspects of their China operations, especially manufacturing, supply chains and R&D, according to KPMG's 2025 MNC China Outlook Report in November.

"Structural innovation and ongoing upgrades in the Chinese market are leading multinational companies to reassess their strategies in China," said Michael Jiang, head of clients and markets at KPMG in China.

Companies are investing in local innovation and digital transformation to enhance operational efficiency, optimize pricing, improve profit margins and build strategic competitiveness in the Chinese market, he added.