Multinationals in China: Sharing New Opportunities of Chinese Modernization

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Information Office of the People's Government of Shandong Province

Aug 29, 2024, 05:28 ET

QINGDAO, China, Aug. 29, 2024 /PRNewswire/ -- This is a news release from the Information Office of the People's Government of Shandong Province:

On August 28, the Fifth Qingdao Multinationals Summit opened in Qingdao, Shandong province. The Ministry of Commerce's International Trade and Economic Cooperation Research Institute released a research report titled " Multinationals in China: Sharing New Opportunities of Chinese Modernization" at the opening ceremony.

In 2023, the global landscape for foreign direct investment (FDI) contracted due to sluggish economic growth and geopolitical tensions. This led to a slight decline in FDI across most regions, while China's inbound investment remained at a relatively high level compared to the past decade. In 2023, a total of 53,766 foreign-invested enterprises (FIEs) were established in China, a year-on-year increase of 39.7%. In the first half of 2024, nearly 27,000 new FIEs were established, a 14.2% increase. It fully confirms that multinational companies (MNCs) are optimistic about the development opportunities of the Chinese market and continue to increase their "investment in China".

The report shows that these corporations are active participants and important supporters of the nation's pursuit of high-quality development. From 2018 to 2022, FIEs consistently contributed over 17% of the total national tax revenue, playing a significant role in the steady growth of China's fiscal and tax revenue. The proportion of import and export trade volume of FIEs in China's total trade remained over 30%.

By investing in China, MNCs continue to benefit from increased profit margins, improved cost structures and optimized allocation of resources. FIEs in China have shown consistent growth in operational revenues. According to the China Statistical Yearbook, from 2018 to 2022, the annual average growth rate of FIEs in China was 4.1%, accounting for over 20% of the total operating revenue of industrial enterprises above designated size, and the profit margin remained over 7%.

The report recommends that MNCs further strengthen their confidence in investing in China, enhance the level of Chinese business in the global layout, and actively carry out strategic docking in six aspects, including: seizing the new potential of consumption, enhancing investment strategies to foster shared prosperity, focusing on new quality productive forces, seizing the opportunity of green transformation, interconnecting global network of industrial and supply chains between China and the world, integrating into China's opening-up and innovation drive to co-shape a new development landscape.

SOURCE Information Office of the People's Government of Shandong Province