China holds wide appeal for investors

This photo taken on Nov 4, 2024, shows the National Exhibition and Convention Center (Shanghai), the main venue for the 7th China International Import Expo which will be held from Nov 5 to 10, in East China's Shanghai. (Photo/Xinhua)

Motivated by China's complete removal of market access restrictions for foreign investors in the manufacturing sector, executives from multinational corporations attending the seventh China International Import Expo said they will deploy more resources in the country, with a particular focus on high-end manufacturing.

This year's CIIE, scheduled in Shanghai from Tuesday to Nov 10, will debut more than 400 new products, technologies and services across advanced sectors, including high-end equipment, advanced materials and marine engineering products, according to the Ministry of Commerce.

The latest edition of China's national negative list for foreign investment, which took effect on Friday, has removed the last two manufacturing-related restrictions, further opening the sector to global investors, according to the National Development and Reform Commission.

Attracted by China's innovation capability, business model transformation, and bilateral and multilateral free trade deals, many global manufacturers are increasingly inclined to invest in new innovation centers, expand production capacities, and advance digital transformation initiatives within the country, said Sun Xiao, secretary-general of the China Chamber of International Commerce.

For China, the manufacturing industry is the earliest sector to open up to foreign investors, and it is also the most competitive, with a high level of integration with the global industrial division of labor, said Sun.

Schneider Electric, a French industrial and technology group and a seven-time participant at the CIIE, will present at this year's event new concepts, products, services, and applications that combine digital, automation, and electrification technologies, underscoring its commitment to China through its "China Hub" strategy.

Yin Zheng, executive vice-president of Schneider Electric's China and East Asia operations, said that China has become Schneider Electric's second-largest market in the world and one of its four global research and development bases.

"Through the CIIE, a world-class communication platform, we aim to continuously deepen ecosystem cooperation and work with more Chinese industrial partners to jointly build new quality productive forces," he added.

Arthur Xu, president for China at Danfoss Group, a Danish engineering company, said that Danfoss will bring its products and solutions in the data center, water and wastewater treatment, marine, food and beverage, and heat recovery fields, among others, to the CIIE this year. These proven solutions will offer unique value for China's green transition, he said.

In addition to plans to begin construction in April in Jiaxing, Zhejiang province, on its new manufacturing facility, which will be one of the biggest production sites in Danfoss' history, the company also announced in September that it has completed construction of a work campus in Nanjing, Jiangsu province.

The new campus is dedicated to the innovation and production of specialized transistor modules as well as electric and hybrid power train systems.

With the structure of foreign investment continuing to be optimized, China saw the high-tech manufacturing sector use 77.12 billion yuan ($10.87 billion) in foreign direct investment in the first three quarters of 2024, accounting for 12 percent of the national total, according to the Ministry of Commerce. That is an increase of 1.5 percentage points from the same period last year.

Tang Wenhong, assistant minister of commerce, said that China's well-developed industrial system, commitment to continued openness, and efforts to scale up high-tech manufacturing remain key drivers for foreign manufacturers' investment in the country.

Nipsea Group, a Singapore-based paint and coating manufacturer, will make its debut as a participant at the CIIE this week with a 300-square-meter booth.

"This year, we have officially transitioned from being a witness to a participant at the CIIE, presenting our latest products and technology solutions," said Eric Chung, CEO of Nippon Paint China, a subsidiary of Nipsea Group.

"This move not only underscores our unwavering commitment to the Chinese market, but also reflects our firm determination to contribute to the high-quality development of China's economy," Chung said, adding that the company will showcase its newest automotive coatings and marine paint products at the expo.