China has been expanding its high-level opening-up this year. In the first half of the year, the number of newly established foreign-invested enterprises nationwide grew by 7% year-on-year, with the structure of foreign capital attraction continuing to optimize. The latest batch of QDII quotas announced recently totals $6.84 billion, the highest amount since June 2021. From "bringing in" to "going global," China's high-level two-way opening-up is picking up pace, with foreign enterprises continuously adjusting their investment layouts in the country.

Data released by the State Administration for Market Regulation on the 29th shows the new foreign-invested enterprises established nationwide in the first half of the year reached 35,000, a 7.0% year-on-year increase, indicating a good momentum in attracting foreign investment. From a regional perspective, both major export provinces and border provinces have shown strong performance. New foreign-invested enterprises in export-heavy provinces like Hainan, Shandong, Guangdong, and Jiangsu grew by 38.6%, 15.2%, 8.1%, and 6.8% respectively. Meanwhile, border provinces such as Heilongjiang, Inner Mongolia, Guangxi, and Jilin saw even faster growth rates of 79.5%, 29.1%, 16.6%, and 12.0%.

Cui Fan, a professor at the School of International Economics and Trade at the University of International Business and Economics, noted that the parallel opening-up from coastal areas to border and inland regions demonstrates the construction of a new pattern of comprehensive opening-up. In terms of source countries, enterprises from Belt and Road Initiative partner countries have seen comprehensive growth in China. In the first half of the year, a total of 11,000 new enterprises were established in China by countries participating in the BRI, Arab states, and African Union member states, with growth rates of 19.3%, 20.6%, and 42.8% respectively. Existing foreign-invested enterprises have also been quite active in reinvesting their profits back into China, with actual Saudi Arabian investment in China surging by more than 340% in the first seven months of this year.

Looking at investment sectors, the consumer market has emerged as a new magnet for foreign investment. In the first half of the year, new foreign-invested enterprises in the health and social work, wholesale and retail, and accommodation and catering sectors grew by 27.1%, 11.9%, and 11.7% respectively. Experts suggest that the continuous increase in capital from multiple countries into the Chinese market reflects the international community's high recognition of China's economy, industrial innovation, and business environment. Actual use of foreign capital in high-tech industries grew by over 30% in the first seven months of this year, indicating that the structure of foreign investment is trending toward optimization.

Global Consumer Giants Confident in China's Massive Market

Recent financial reports from a number of foreign consumer companies show that the Chinese market has become a shining growth engine, with the appeal of China's massive market for foreign investment continuing to rise. Thanks to this year's policy measures to boost consumption, including the "Work Plan to Accelerate the Cultivation of New Growth Points in Service Consumption" and the "15th Five-Year Plan for Expanding Consumption," market vitality is being released at an accelerated pace.

German high-end skincare brand Babor saw a year-on-year net sales increase of approximately 40% in China in the first seven months of this year. Henrik Grund, Babor's Global Sales Vice President, stated that investing in China is a key decision for the brand's future global growth, and that Shanghai provides a world-class business environment for global brands. Over the past year, prominent overseas consumer brands have been opening their first stores in China. Swiss chocolatier Lindt opened its first immersive flagship store in Shanghai, which has been well received by consumers. Michael Schiller, a member of Lindt's group management, noted that long queues have formed outside the store, describing the Chinese market as a booming one where consumers love experiencing new things.

The strong performance of foreign consumer companies in China not only validates the market's consumption potential but also directly translates into continued investment expansion. Fashion brand Coach has shown robust performance in the Chinese market. Lillian Li, President of Coach China, said the company achieved sales of $1.4 billion in China for its fiscal year 2026, a year-on-year increase of 35%. She expressed the company's hope to continue investing in China, including opening new stores and creating new customer experiences.

Foreign enterprises are not only establishing a firm presence in the Chinese market but also leveraging China's development strengths to serve the globe. Li Shusheng, Vice President of US industrial gas company Air Products in China, said the factory in Shanghai is serving not only Chinese projects but also projects in Europe and the US, utilizing China's excellent green energy resources and engineering manufacturing capabilities to further serve the global market.

QDII Quota Expansion Meets Global Asset Allocation Demand

While "bringing in" foreign investment, policy efforts have also been intensifying on the "going global" front. On August 28, the State Administration of Foreign Exchange issued a new batch of Qualified Domestic Institutional Investor (QDII) quotas totaling $6.84 billion, attracting market attention. QDII is an institutional arrangement that, upon regulatory approval, allows domestic institutions to invest in overseas capital markets for securities such as stocks and bonds. In this new batch, 53 securities and fund institutions received a combined $3.72 billion, accounting for the largest share. Twenty-two banking institutions received a combined $1.76 billion, and 14 insurance institutions received a combined $1.36 billion. By the end of August, the cumulative QDII quota approved for various institutions stood at $183.009 billion.

Li Liuyang, head of FX research at CICC Research, pointed out that this new allocation is the largest since June 2021. As an important part of China's high-level two-way opening-up of the capital account, the accelerated expansion of the QDII scheme this year reflects a favorable domestic and international macroeconomic environment, with regulators proactively broadening compliant investment channels to meet residents' diversified allocation needs. Dai Jingxia, Senior Analyst at Morningstar's China Fund Research Center, said that the QDII scheme serves as a crucial channel for domestic investors to participate in overseas markets. Increasing the quota better addresses residents' needs for risk diversification and global asset allocation opportunities, helping to enhance the international participation and influence of China's financial markets.

With foreign-funded entities steadily expanding in number and QDII quotas significantly increased, policy efforts are simultaneously focused on both "bringing in" and "going global." This dual approach welcomes global capital to share in China's huge market while also supporting domestic capital's global allocation. China's high-level two-way opening-up is continuously advancing to new heights.