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MNCs positive about China biz outlook

By ZHAO RUIXUE in Qingdao, Shandong | China Daily | Updated: 2025-06-20 09:03
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A view of the financial center of Shanghai's Pudong New Area. WANG GANG/FOR CHINA DAILY

China's expanding market size and continuously improving business environment are attracting more multinational companies, leading to a more diverse source of foreign investment in sectors related to new quality productive forces, according to a new report.

Last year, actual utilized foreign direct investment in medical equipment and instrument manufacturing increased by 98.7 percent, followed by professional technical services at 40.8 percent, and computer and office equipment manufacturing at 21.9 percent, the report, released at the sixth Qingdao Multinationals Summit held in Qingdao, Shandong province on Thursday, showed.

The trend grew further in the first quarter of this year, particularly in e-commerce services, biotechnology, aerospace equipment and medical device manufacturing. As a key investment destination, Shandong directed 46.5 percent of its foreign capital into high-tech industries last year, including automotive manufacturing and next-generation information technology.

China's accelerated development of new quality productive forces — such as artificial intelligence, quantum technology, biopharmaceuticals and the space economy — has drawn significant foreign investment, Vice-Premier He Lifeng said at the opening ceremony of the conference.

A food technology industrial park in Qingdao, invested by Louis Dreyfus Co, is set to launch its first phase with an investment of 1.4 billion yuan ($194.8 million), part of the 7 billion yuan total project.

The facility will serve as a strategic hub linking East and North China while strengthening synergies with local port logistics and feed-processing industries, according to the company.

Multinational corporations are playing a pivotal role in fostering new quality productive forces, said the report.

National Bureau of Statistics data show that research and development expenditures by foreign-funded enterprises increased from 201.51 billion yuan in 2013 to 375.76 billion yuan in 2023, an 86.5 percent growth, to boost the development of new technologies.

"With advancements in AI, new materials and smart manufacturing, China's innovation landscape is evolving rapidly, presenting unparalleled opportunities," said Zhao Bingdi, president of Panasonic Corp of China.

The company plans to deepen its focus on healthy living spaces, new energy, smart manufacturing and mobility solutions to align with China's industrial transformation, he said.

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