MNCs intensify their push for growth in China

Beijing: China’s fast-growing tech-intensive green industries, lucrative market potential and high-level openness to international engagement will boost confidence among multinational corporations, say foreign business leaders.

Highlighting China’s strong attraction for global companies due to emerging opportunities in sectors such as electric vehicles, advanced manufacturing and services, they said that technological decoupling presents a significant risk to global economic recovery.

Driven by these prospects, foreign companies are intensifying their investments, broadening their business scope, and devising medium to long-term strategies for consistent growth based on optimism about China’s prospects for high-quality economic advancement in the coming years.

Riding a boom in China’s automotive sector, Japanese tyre manufacturer Bridgestone Corp said earlier this month that it will invest 562 million yuan in the country over the next three years. The investment will focus on constructing production bases and enhancing output of high-performance passenger-car tyres.

“To achieve the goals of enhancing profitability, our strategic resources will be primarily directed toward the high-end passenger-car tyre market in China. This area has greater potential for growth,” said Agustin Pedroni, president and chief executive officer of Bridgestone (China) Investment Co Ltd.

The Japanese company plans to invest US$26mil in its tyre factory in Wuxi, Jiangsu province, this year, to expand high-end passenger-car tyre production.

To adapt to the changing demands of the Chinese tyre market and accelerate product localisation, Bridgestone’s Wuxi plant has increased production bigger diameter tyres of up to 21 inches to replace imports.

Bridgestone’s investments appear justified. A total of 8.07 million passenger cars were sold via retail channels in China in the first five months of 2024, an increase of 5.7% year-on-year, data from the China Passenger Car Association showed.

Meanwhile, US logistics provider FedEx will continue to invest in network development, digital-related services and key regions in China this year, said Robert Chu, vice-president of operations for FedEx China.

As one of the most dynamic and promising areas in China, the Guangdong-Hong Kong-Macao Greater Bay Area has attracted businesses of all sizes, said Chu, adding that the company recently upgraded its gateway facility in Shenzhen, Guangdong province.

“With the newly renovated and expanded import warehouse, our import operations and customs clearance have become more efficient,” he added.

In a survey of more than 600 foreign companies, over 70% said they are optimistic about the development prospects of the Chinese market over the next five years, and more than 50% believe the Chinese market has become more attractive. — China Daily/ANN