Foreign Enterprises Boost Investment and Expand Production, Deepening Presence in Chinese Market at Start of Year

Deep News
02/06

Since the beginning of this year, many foreign enterprises have increased capital investment, expanded production capacity, and extended their business operations in China, actively positioning themselves to seize new development opportunities in the market.

At the start of the new year, a series of new foreign-funded projects have been launched in quick succession. In Taicang, Jiangsu province, a German environmental equipment manufacturer has recently opened its newly built Asia-Pacific headquarters. The project represents a total investment of 500 million yuan and nearly doubles the size of its original factory space. Yang Xinhua, General Manager of Bona Environmental Equipment (Taicang) Co., Ltd., stated, "Over the next three years—2026, 2027, and 2028—we will continue to invest 200 million yuan in equipment upgrades. This will ensure we can meet not only demand in China but also the needs of customers across the entire Asia-Pacific region."

At the KONE Kunshan Industrial Park, the elevator production workshop is operating at full capacity to fulfill orders. Benefiting from policy support related to "two new initiatives" and ultra-long special government bonds, the Finnish company's elevator business has found a new growth driver. He Lin, Vice Chairman of the KONE Group Board, said, "Our elevator modernization and refurbishment business already covers more than 30 provincial-level regions in China. This year, we aim to further deepen our operations and expand into more cities and broader areas."

In Beijing, many foreign enterprises are also planning new developments in China. Bai Disen, an Asia-Pacific senior executive at the German company Knorr-Bremse Group, has visited Beijing three times since January. Bai Disen, Director for Asia-Pacific at Knorr-Bremse Group, noted, "We have been operating here for 20 years. Now is the time to consider how to introduce more automation and digital solutions into our production processes. We aim to prepare for future growth through modernization and upgrades."

A recent "Business Confidence Survey Report" released by the German Chamber of Commerce in China indicates that 93% of German companies in China plan to continue their presence in the market, with more than half of the surveyed firms intending to increase investment in the country.

The 2026 "China Business Climate Survey Report" published by the American Chamber of Commerce in China also shows that corporate expectations regarding U.S.-China relations have improved significantly. Fifty-two percent of surveyed companies still regard China as one of the top three global investment destinations. Michael Hart, President of the American Chamber of Commerce in China, commented, "Profitability for American companies in the services and consumer-related sectors has improved noticeably. China remains a competitive supply chain base, and factors such as its vast consumer market continue to make it an important investment destination for American firms."

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