MNCs tap China's industrial ecosystem

Reflecting this long-term commitment, Carrier, the parent company of Toshiba HVAC and Viessmann Climate Solutions, has continued to expand its manufacturing footprint in China. It launched a new air-cooled chiller production line at its facility in Shanghai's Baoshan district, with investment exceeding 100 million yuan ($14.7 million) in January.

Together with additional production lines yet to be commissioned and supporting facilities, the project's total investment is expected to reach 400 million yuan.

The continued inflow of foreign investment underscores the confidence of multinational companies in the Chinese market. Foreign direct investment in China's high-tech industries expanded 19.4 percent year-on-year to 130.14 billion yuan in the first five months of 2026. The sector accounted for 39.8 percent of the country's total FDI, up 9.4 percentage points from the same period last year, statistics from the Ministry of Commerce showed.

In the meantime, investment from the United Arab Emirates, Malaysia, Switzerland and the US surged by 285.5 percent, 108.6 percent, 49.4 percent and 17.3 percent on a yearly basis, respectively.

Pushing back against the so-called "China Shock 2.0" narrative, which portrays China's development as a disruption to the global economy, Huang Yiping, dean of Peking University's National School of Development, said that while trade tensions persist, growing investment, green transition needs and shared support for multilateralism continue to sustain China's economic cooperation with the world, particularly with the European Union.

China and the EU can deepen cooperation in green development and advanced manufacturing by combining China's large-scale industrial capacity with Europe's strengths in low-carbon technologies, industrial innovation and high-end engineering, said Huang.

Practical cooperation can also be expanded in industrial artificial intelligence, high-end services and third-country markets, enabling both sides to leverage their complementary strengths and generate new growth opportunities, he added.

Market watchers said that rather than displacing other economies, China's industrial upgrading is creating new opportunities for cross-border innovation, investment and industrial cooperation.

Vaughn Barber, chairman of the China-Australia Chamber of Commerce, echoed that view. "China's open and resilient industrial ecosystem offers opportunities for deeper cooperation," he said.

By leveraging complementary strengths, Chinese and Australian companies can accelerate energy transition, advance industrial upgrading and create long-term value through practical partnerships, said Barber.

AI, digitalization and green technologies are emerging as the next frontier for multinational companies in China, with the country's industrial ecosystem providing an ideal environment for commercialization and industrial application.