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<img src='https://news.cgtn.com/news/2024-08-28/-China-s-newly-established-foreign-funded-enterprises-grow-by-14-yoy-1wqSP66Dho4/img/9c2d1f7599724dc6b58822cbcb1502ee/9c2d1f7599724dc6b58822cbcb1502ee.png' alt='The fifth Qingdao Multinationals Summit opens in Qingdao City, east China's Shandong Province, August 28, 2024. /CFP'
Multinational companies have maintained sustainable growth in China and could enjoy better opportunities, according to a report released at the opening ceremony of the fifth Qingdao Multinationals Summit in east China’s Qingdao City on Wednesday.
In the decade preceding 2023, China’s use of foreign direct investment was high. Industry’s structure and regional layouts continued to be optimized, according to the report about multinational companies in the world’s second-largest economy.
The report also said China’s newly established foreign-funded enterprises increased by 14.2 percent year-on-year in the first half of 2024.
Noting that the development of multinational companies in China is an important part of Chinese modernization, the report showed that in the past five years, the proportion of tax revenue paid by foreign-invested enterprises in the total tax revenue of the country has always been more than 17 percent, and the proportion of import and export volume of foreign-invested enterprises in China’s total trade has always been more than 30 percent.
Yu Zirong, vice president of the Chinese Academy of International Trade and Economic Cooperation, noted that multinational companies have continued to reap benefits by investing in China, including increased profits, optimized cost structures and improved resource allocation.
From 2018 to 2022, the annual average growth rate of operating revenues for foreign-invested industrial enterprises in China reached 4.1 percent, accounting for over 20 percent of the total operating revenues of industrial enterprises above the designated size, with profit margins remaining above 7 percent, Yu added.
The report recommends that multinational companies further strengthen their confidence in investing in China and elevate the role and capacity of their China operations within their global strategies.
It also suggests multinational companies actively aligning in 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, and supporting China’s higher-level opening up.
The fifth Qingdao Multinationals Summit will last until August 29 in east China’s Shandong Province. Since its inception in 2019, the summit has served as an important platform for dialogue and practical cooperation between China and multinational corporations.
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