Summit spotlights market for MNCs

China's large domestic market and commitment to high-standard opening-up continue to appeal strongly to international businesses. As highlighted at the 7th Qingdao Multinationals Summit, which kicked off on Tuesday in Qingdao, Shandong province, China will further boost domestic demand during the 15th Five-Year Plan (2026-30), creating substantial new opportunities for multinational companies around the world.

In his opening address at the Qingdao summit, Chinese Vice-President Han Zheng called on multinational corporations to share in the vast opportunities of China's consumer market, scale up their investment and footprint in the country, offer premium goods and services, and continue to break new ground for development.

Data released by the Ministry of Commerce show that more than 20,000 new foreign-invested enterprises were established nationwide in the first four months of this year, representing a year-on-year increase of 6.8 percent.

Actual utilized foreign direct investment in high-tech industries reached 116.33 billion yuan ($17.2 billion), up 20.3 percent from the same period a year earlier.

Lydia Liu, secretary-general of the Global Investment Council, said that multinational companies have steadily expanded their operations in China between 2023 and 2026.

Well-known foreign brands such as BMW, Bosch, Samsung, Astra-Zeneca and Bayer have increased investment across a wide range of sectors, including automobiles, new energy, semiconductors, chemicals, pharmaceuticals and consumer goods, she said.

"China's comprehensive strengths set it apart globally, combining steady economic growth, a huge consumer market, complete industrial chains, a dynamic innovation environment, and ongoing opening-up policies," said Liu.

China is not only the world's largest automobile market, but also a leader in the development of electric and intelligent vehicles, said Lee Hyuk-joon, president of Hyundai Motor Group China.

The group has set up digital research and development centers and hydrogen fuel cell facilities in China. Over the course of the 15th Five-Year Plan, Hyundai plans to strengthen local research and development work by combining China's advanced software and artificial intelligence technologies with its own global manufacturing experience.

The rising household incomes and a fast-expanding middle-income group have made China one of the world's most attractive consumer markets, said Simon Lichtenberg, founder and CEO of Trayton Group.

He said that foreign companies now view China as far more than a production base, but an important market with enormous consumption potential.

"Chinese consumers prioritize product quality, embrace digital lifestyles, and are open to emerging brands and novel consumption experiences," he said, adding many multinational companies have witnessed that outstanding performance in China can reshape their overall global business layout.

"China has moved beyond its traditional role as a manufacturing base. It has developed into an important global innovation center. China is a market that global enterprises cannot ignore," Lichtenberg said.

During the 15th Five-Year Plan period, China will drive growth through both supply and demand by boosting household incomes, unlocking the potential of services consumption, and upgrading goods consumption, creating structural growth opportunities for multinational companies, according to a report released by the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce during the summit.