China's new foreign-funded enterprises have surged by a whopping 14.2% year-on-year in the first half of 2024! 🎉 This exciting news came from a report unveiled at the opening ceremony of the fifth Qingdao Multinationals Summit in east China's Qingdao City on Wednesday.
Multinational companies are not just surviving in China—they're thriving! 🌟 The report highlights that in the decade leading up to 2023, China's use of foreign direct investment (FDI) remained high, with industry structures and regional layouts continuously optimized. Talk about leveling up! 🚀
But that's not all. The development of multinational companies is a key part of Chinese modernization. In the past five years, foreign-invested enterprises (FIEs) have contributed more than 17% to the nation's total tax revenue and over 30% to China's total trade volume. Now that's some serious impact! 💪
According to Yu Zirong, vice president of the Chinese Academy of International Trade and Economic Cooperation, multinational companies are reaping the rewards of investing in the Chinese mainland. Benefits include increased profits, optimized cost structures, and improved resource allocation.
From 2018 to 2022, foreign-invested industrial enterprises in China saw an average annual growth rate of 4.1% in operating revenues, accounting for over 20% of the total operating revenues of industrial enterprises above the designated size, with profit margins staying above 7%. Impressive numbers, right? 📊
The report encourages multinational companies to boost their confidence in investing in China and to elevate their China operations within their global strategies. It suggests aligning with six key areas:
- Tapping into new consumption potential
- Integrating into the nation's drive for common prosperity
- Focusing on new quality productive forces
- Seizing opportunities in green transformation
- Enhancing linkages within production and supply chains
- Supporting China's higher-level opening up
The fifth Qingdao Multinationals Summit continues until August 29 in east China's Shandong Province. Since its inception in 2019, the summit has been a hotspot for dialogue and cooperation between China and multinational corporations. If you're into global business trends, this is definitely one to watch! 👀
Reference(s):
China's newly established foreign-funded enterprises grow by 14% yoy
cgtn.com
