MNCs seek fresh growth points in China(2)

Without revealing the specific investment figure, the German executive said that Covestro is currently building a plant to make thermoplastic polyurethanes in Zhuhai, with an annual production capacity of 120,000 metric tons by 2033.

Pan Yuanyuan, an associate researcher at the Chinese Academy of Social Sciences' Institute of World Economics and Politics, said China's abundance of innovative application scenarios, supported by favorable policies and a flourishing market, will remain attractive for global investors.

"There will persist enticing investment opportunities, especially within emerging industries and innovative business formats," said Pan.

Latest data from the Ministry of Commerce show China's high-tech manufacturing sector attracted 12.5 percent of the foreign direct investment inflows into China in the first quarter of this year, up 2.2 percentage points year-on-year.

Following China's announcement that it has lifted all restrictions on foreign investment in the manufacturing sector and implemented measures to ensure equal treatment for foreign-funded companies, the number of newly established foreign-invested firms in China reached 12,000 in the first quarter of this year, up 20.7 percent year-on-year.

Despite increasing uncertainties, including geopolitics and protectionist steps taken by certain developed countries, Jin Zhuanglong, minister of industry and information technology, said that efforts will be intensified to support foreign businesses in establishing R%26D centers in China.

Moreover, collaboration with Chinese companies for technological research, industrial applications and expanding international cooperation in digital transformation, as well as green and low-carbon development of the manufacturing sector, will be prioritized, he said.

These policy measures will create favorable conditions for overseas businesses to participate in the development of China's new quality productive forces, said Zhu Bing, director-general of the Department of Foreign Investment Administration in the Ministry of Commerce.

New quality productive forces represent advanced productivity freed from traditional economic growth modes and productivity development paths. They feature high-tech, high efficiency and high quality, and are in line with the new development philosophy.

Highlighting that the concept of new quality productive forces is fully in line with Schneider Electric's growth strategy, Yin Zheng, its executive vice-president of China and East Asia operations, said the company will strengthen its "China Hub" strategy this year in all aspects, including talent, innovation, supply chains and ecosystem development.