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The annual Two Sessions elevate global confidence in China's economic momentum
By Ma Miaomiao  ·  2025-03-17  ·   Source: NO.12 MARCH 20, 2025
The booth of China Railway Rolling Stock Corp., the world's largest railroad rolling stock manufacturer, in the Advanced Manufacturing Chain exhibition area of the Second China International Supply Chain Expo in Beijing on November 27, 2024 (XINHUA)
In early March, with the opening of the Two Sessions—the annual meetings of China's top legislature, the National People's Congress (NPC), and the top political advisory body, the National Committee of the Chinese People's Political Consultative Conference (CPPCC)—a key event in China's political calendar, the world's attention turned to China. For foreign enterprises, the event provided insight into China's evolving policy landscape and its continued commitment to offering them vast opportunities in one of the world's most dynamic economies.

"We are eager to align with China's development pace and contribute to its advancement in new quality productive forces (shift to using innovation and cutting-edge technologies as the main drivers of economic growth in order to achieve greater productivity, competitiveness and sustainability—Ed.)."

"We have confidence in the long-term growth of the Chinese market."

"We believe in China's vast potential and dynamic economy and will continue to deepen our investment here."

These are just some of the sentiments expressed by multinationals that closely followed this year's Two Sessions. As a window into China's economy and society, the meetings offer them a view of the opportunities that exist in China's massive market, as well as a source of confidence in the country's potential for future growth.

Aspirations for future 

China has long been a fertile ground for foreign investment and business presence, offering a vast market, a well-established industrial system, robust infrastructure and a highly skilled workforce, David Zhang, Chairman and CEO of Nestlé Zone Greater China, told Beijing Review in a recent interview, adding that the country continues to make progress in optimizing its business environment and expanding high-standard opening up.

Zhang emphasized China's "strategic importance" to Nestlé, saying that as the world's largest food and beverage company, Nestlé was among the first multinationals to invest in China following the implementation of the country's reform and opening-up policy in 1978.

The company's long-term commitment is driven by China's vibrancy and potential. With a population of over 1.4 billion and a middle-income group exceeding 400 million, China remains the world's second largest consumer market, serving as a key driver of global economic growth, he added.

According to this year's government work report delivered by Premier Li Qiang at the NPC session, China encourages foreign investors to increase their reinvestment in China and supports them in collaborating with upstream and downstream enterprises in industrial chains.

The report also highlights China's commitment to high-standard opening-up, proposing enhanced services and guarantees for foreign enterprises, accelerated implementation of landmark investment projects and continuous efforts to make China a favored destination for foreign investment, Jack Chan, Chairman of Ernst & Young (EY) China and Chief Executive Officer of EY Greater China, told People's Daily, adding that this demonstrates China's determination to provide global enterprises with more diverse opportunities. 

"EY was one of the first international accounting firms to enter China, and over the decades, we have been privileged to witness, contribute to, and benefit from China's reform and opening up," Chan said, adding that as a multinational professional services firm, EY has been dedicated to helping Chinese enterprises "go global" while also facilitating the entry of foreign enterprises into China.

"From our clients' feedback, most foreign companies believe that China presents vast opportunities. It not only possesses a complete industrial chain and efficient supply chain but also continuously innovates in areas such as new energy, the digital economy and high-end manufacturing, enabling extensive growth and cooperation opportunities for foreign enterprises," Chan said.

In 2024, despite facing a complex and ever-changing domestic and international economic landscape, China's GDP growth rate reached 5 percent, proving the strong resilience and potential of the Chinese economy. "It has maintained steady economic growth, thanks to its vast market size, well-developed industrial system and continuously improving business environment," William Yu, President of Honeywell China, an American company creating building technologies and other technological solutions in China, told Beijing Review on March 7. "Honeywell is highly confident in China's economic growth in 2025."

Staff of Japanese tech company Panasonic introduce products to visitors at the Consumer Goods Exhibition Area of the Seventh China International Import Expo (CIIE) in Shanghai, on November 7, 2024 (XINHUA)

Benefiting from the market 

"Suzano has been committed to China for more than 40 years, over which time we increased our trade, volume, operations and investments—both in China and with Chinese stakeholders," Pablo Machado, Executive Vice President of the Brazil-headquartered global leading pulp and paper products firm, told China Daily on March 4, adding that over the past three years, the company has greatly increased its investments and presence in China, which is translated into different dimensions.

"Suzano is particularly interested in measures that promote sustainable development, green manufacturing and the circular economy. We are keen to see measures that can further boost demand and consumer confidence, which are important engines for the growth of our industry and others in China," he added.

Machado said his company is committed to supporting China's industrial upgrade and high-quality development, with a focus on providing high-quality, renewable products that can serve multiple industries, including paper, packaging, hygiene, textiles, fashion and energy, enabling downstream industries to innovate and grow with a lower carbon footprint.

China will continue working to foster a first-rate business environment that is market-oriented, law-based and internationalized, thus enabling foreign-funded enterprises to achieve even greater business success in China, according to the government work report.

Over the past year, the country has introduced a series of measures to stabilize foreign investment, including fully lifting restrictions on foreign investment in manufacturing. These policies have brought more opportunities for multinationals, Chan said.

On February 19, Chinese authorities introduced an action plan for expanding high-standard opening up and ensuring foreign investment stability, to improve the expectations of foreign-funded enterprises seeking expansion in China. The new action plan, with 20 specific measures in four categories, includes initiatives to further expand market access in multiple sectors and increase efforts to promote investment. 

Tetsuro Honma, Executive Vice President of Japanese tech company Panasonic Holdings Corp. and Group Chief Executive for Panasonic China & Northeast Asia, told People's Daily that these initiatives demonstrate China's strong commitment to attracting foreign investment.

"China is not only a manufacturing powerhouse but also a hub for innovation and engineering talent," Honma said. "Besides a robust and well-developed supply chain, China fosters a culture that encourages innovation and tolerates failure, and has an abundance of research and development (R&D) personnel and immense market potential. These attributes make China highly attractive to Japanese enterprises." 

Saravoot Yoovidhya, CEO of Thailand's TCP Group, which owns the popular energy drink brand Red Bull, said China's resilient and dynamic economy, along with its opening-up measures, has strengthened multinationals' confidence in deepening their presence in the Chinese market.

Mechanical arms carry out welding work in a workshop of the Tiexi Plant of automaker BMW Brilliance Automotive Ltd., a joint venture between the BMW Group and Brilliance China Automotive Holdings Ltd., in Shenyang, Liaoning Province, on February 16, 2022 (XINHUA)

New investment 

While businesses may still need to navigate China's unique market dynamics, the overall outlook remains positive, Peter Burnett, Chief Executive of the China-Britain Business Council, told International Financial News on March 9.

"The country's policies are becoming increasingly open, aligning more closely with international standards, reducing restrictions and administrative approvals, and making the business environment more transparent and predictable," he said. Citing data regulations, a once major challenge for many multinationals, as an example, Burnett said they have become clearer and easier to follow in recent years.

According to the 2025 China Business Climate Survey Report released by the American Chamber of Commerce in China (AmCham China) in January, more than half of companies from the United States plan to increase their investments in China this year.

The survey involved a total of 368 member companies of AmCham China. It also found that about 87 percent of U.S. respondents consider positive China-U.S. relations essential for their operations in China, a 5-percentage-point increase from 2023. In the technology, research and development sectors, this figure rose to as high as 95 percent.

Many multinationals have already translated their confidence in the Chinese market into concrete investment projects.

Since 2020, Nestlé has invested over 2 billion yuan ($276.4 million) in China to expand its operations further. It now runs 23 factories, three R&D centers and five innovation centers in the country, with over 90 percent of its products sold in China being locally manufactured, according to the company.

TCP Group's new production base in Nanning, Guangxi Zhuang Autonomous Region, with a total investment of approximately 1.3 million yuan ($180,000), is set to begin operations this year.

In January, Morgan Stanley announced that its wholly owned subsidiary, Morgan Stanley Futures (China) Co., had officially launched operations, offering brokerage services for China's onshore commodity futures market. Meanwhile, Standard Chartered Securities China reported that its Shanghai branch had obtained a license to conduct securities and other financial services in the country.

On March 3, U.S. hospitality giant Marriott International celebrated the opening of its 600th hotel in Greater China. The company said it remains committed to expanding its presence in China and pursuing new development opportunities.

Further highlighting foreign investment in China's growing healthcare sector, Singapore Perennial Holdings inaugurated China's first wholly foreign-owned, third-grade general hospital in Tianjin on February 26. Developed at a cost of 1 billion yuan ($138 million), the 500-bed hospital is designed to meet the rising demand for high-quality and more diverse medical services.

According to Burnett, with strong policy support, industries such as renewable energy, artificial intelligence and advanced manufacturing offer huge opportunities for multinationals.

"To succeed in the Chinese market, multinationals cannot simply replicate their global strategies. Instead, they must deeply understand market dynamics and consumer needs in China, crafting precise localization strategies," Burnett said, adding that the key to success also lies in adapting to the local market and closely following the innovative practices of their Chinese counterparts, as China has already emerged as a global leader in multiple industries.

(Print Edition Title: Two sessions, many opportunities) 

Copyedited by G.P. Wilson 

Comments to mamm@cicgamericas.com 

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