Foreign-funded enterprises in China see a 14% year-over-year increase in establishment
According to a report presented during the opening ceremony of the fifth Qingdao Multinationals Summit in Qingdao City, eastern China, multinational companies have sustained growth in China and may benefit from even greater opportunities.
TroibNews 
Multinational corporations have experienced continued growth in China, with prospects for further improvement, revealed a report at the inaugural event of the fifth Qingdao Multinationals Summit held in Qingdao City, Shandong Province, China, on Wednesday.
Over the last ten years leading up to 2023, China has significantly attracted foreign direct investments, with the industrial sector and regional distribution seeing ongoing enhancements, the report highlighted.
Moreover, the first half of 2024 saw a 14.2 percent increase in the formation of new foreign-funded enterprises within China compared to the previous year.
The report emphasized the significant role of multinational companies in the progression of Chinese modernization. It noted that, over the last five years, foreign-invested enterprises have consistently contributed more than 17 percent to the national tax revenue and accounted for over 30 percent of China's total trade in terms of import and export volumes.
"Multinational companies have continued to reap benefits by investing in China, including increased profits, optimized cost structures and improved resource allocation," said Yu Zirong, vice president of the Chinese Academy of International Trade and Economic Cooperation. From 2018 to 2022, he pointed out that the operating revenue of foreign-funded industrial enterprises in China grew annually by an average of 4.1 percent, representing more than 20 percent of the total revenue of significant industrial enterprises, with profits consistently exceeding 7 percent.
The report advises multinational firms to boost their commitment to their operations in China and to integrate their Chinese activities more deeply into their global strategic framework.
Additionally, it urges these companies to engage actively in six strategic areas: exploring new consumer markets, supporting the national agenda for common prosperity, focusing on high-quality production forces, capitalizing on green transformation opportunities, strengthening production and supply chain integrations, and backing China's commitment to open its markets further.
The Qingdao Multinationals Summit, running until August 29, acts as a crucial forum for dialogues and cooperation between China and global corporations since its first meeting in 2019.
Camille Lefevre for TROIB News
Over the last ten years leading up to 2023, China has significantly attracted foreign direct investments, with the industrial sector and regional distribution seeing ongoing enhancements, the report highlighted.
Moreover, the first half of 2024 saw a 14.2 percent increase in the formation of new foreign-funded enterprises within China compared to the previous year.
The report emphasized the significant role of multinational companies in the progression of Chinese modernization. It noted that, over the last five years, foreign-invested enterprises have consistently contributed more than 17 percent to the national tax revenue and accounted for over 30 percent of China's total trade in terms of import and export volumes.
"Multinational companies have continued to reap benefits by investing in China, including increased profits, optimized cost structures and improved resource allocation," said Yu Zirong, vice president of the Chinese Academy of International Trade and Economic Cooperation. From 2018 to 2022, he pointed out that the operating revenue of foreign-funded industrial enterprises in China grew annually by an average of 4.1 percent, representing more than 20 percent of the total revenue of significant industrial enterprises, with profits consistently exceeding 7 percent.
The report advises multinational firms to boost their commitment to their operations in China and to integrate their Chinese activities more deeply into their global strategic framework.
Additionally, it urges these companies to engage actively in six strategic areas: exploring new consumer markets, supporting the national agenda for common prosperity, focusing on high-quality production forces, capitalizing on green transformation opportunities, strengthening production and supply chain integrations, and backing China's commitment to open its markets further.
The Qingdao Multinationals Summit, running until August 29, acts as a crucial forum for dialogues and cooperation between China and global corporations since its first meeting in 2019.
Camille Lefevre for TROIB News
