Foreign
China still considered favorable investment destination by foreign companies

By Wang Junling
In January this year, 4,588 new foreign-invested firms were established in China, up 74.4 percent year on year, said the country’s Ministry of Commerce (MOFCOM).
This surge demonstrates the rising enthusiasm of foreign investors in doing business in China, said the head of the MOFCOM’s Department of Foreign Investment Administration, adding that multinational companies are still optimistic about development opportunities in the Chinese market and doubling down on “investing in China.”
This point is well indicated by the 2023 performance in China recently released by a number of foreign-invested enterprises, as well as a series of investment expansion measures they have announced.
Many foreign companies reported remarkable performance in China last year. L’Oreal and Bosch both saw their sales in China grow by over 5 percent. Apple’s revenue from China accounted for about 1/5 of its total revenue. The sales of Merck & Co. in China surged 32 percent year on year to reach $6.71 billion…
“We remain confident in the resilience of the Chinese economy, and the growth opportunities in the Chinese mainland over the medium to long term,” said HSBC Group chief executive officer Noel Quinn.
Why did they achieved good performance in China?
On one hand, China’s vast market has played an indispensable role. Joe Bao, managing director of KONE Greater China, told People’s Daily that the Chinese market made a significant contribution to the company’s global performance last year.
China was the KONE’s largest single market in the fiscal year of 2023, accounting for about 26 percent of the company’s global sales, Bao added.
“China is the world’s largest new elevator market and the country with the most elevators in operation. Notably, 95 percent of the elevators currently in use in China have been installed for less than 20 years. This means that there is tremendous growth potential in the Chinese market for elevator maintenance and upgrading,” Bao said.
On the other hand, China’s continued opening-up policies have demonstrated their appeal. “In 2023, sales in the Chinese market continued to grow and the market ranked among the top ten globally for Karcher. In particular, sales of Karcher’s steam cleaners and window vacuums continued to rise,” said Rainer Kern, vice general manager and CFO of Karcher China.
In Kern’s view, the favorable investment environment, robust supply chain, rich talent pool, stable social environment, and continuously introduced preferential policies in China have provided strong support for companies’ development in the country.
Many enterprises have benefited from the 24 specific measures to further optimize the foreign investment environment and intensify efforts to attract foreign investment since they were introduced, Kern noted.
Among them, tax incentive policies and visa-free entry for personnel from multiple European countries have directly helped companies reduce operating costs and enhance international technological cooperation, Kern said.
Li Hongtao, associate research fellow with the Chinese Academy of International Trade and Economic Cooperation under the MOFCOM, pointed out that in recent years, China’s economy has been accelerating its upgrading driven by innovation.
The abundant innovation scenarios, platforms, and elements have provided multinational companies with brand-new opportunities for the R&D and sales of new products, enabling them to better seize first-mover advantages in the global market, Li explained.
An increasing number of global enterprises are committing to growth in China. The largest development center of German carmaker Volkswagen Group outside Germany commenced operations in January 2024. Meanwhile, U.S. energy giant ExxonMobil plans to invest 10 billion yuan ($1.4 billion) in a project in south China’s Guangdong province this year.
A survey by the Japanese Chamber of Commerce and Industry in China showed that most Japanese companies in China were satisfied with the business environment; a survey by the American Chamber of Commerce in China revealed that half of the respondents considered China as their first or among the top three global investment destinations; a report released by HSBC in 2023 indicated that 87 percent of the international companies interviewed planned to increase their operations in China….Foreign enterprises’ enthusiasm in doing business in China remains high, primarily because they are optimistic about the future prospects here.
Joan Zheng, vice-president of Tyson China and South Korea, noted that the American multinational corporation has seen double-digit growth in both of its sales in and imports from China in each of the recent years.
“China is not only continuously promoting industrial upgrading, but has also been striving to create a better business environment for foreign investors. This helps us gain more competitive advantages in vying for consumers and enhancing added value,” Zheng said.
From the beginning of this year, Tyson’s revenue in China has significantly exceeded the targets set by the headquarters, Zheng told People’s Daily.
The Chinese market has always been one of the most closely watched and continuously growing overseas markets for Tyson, and the company will continue to expand its investment in China, She said.
Li said that in 2023, final consumption expenditure contributed 82.5 percent to China’s economic growth. The constantly expanding and upgrading consumption demands of a population of over 1.4 billion provide multinational companies with a vast market space. At the same time, with its modernized infrastructure, comprehensive industrial system, strong supporting industrial capabilities, and high-quality talent pool, China can offer foreign-invested enterprises with efficient production and logistics solutions while reducing operating costs.
“It can be said that the consumption and industrial upgrades brought about by China’s high-quality economic development are continuously creating new opportunities for foreign enterprises,” Li noted.
Foreign
China’s new chapter in global innovation

By Gu Yekai, Liu Yiqing, People’s Daily
At a smart construction project site managed by China State Construction Engineering Corporation, a quiet technological revolution is underway. Amid cranes and concrete, engineers are deploying advanced artificial intelligence (AI) systems that could fundamentally reshape the construction industry.
Li Fengjian, an AI specialistwith Xianyuan Technology, detailed how the company’s latest intelligent system – built on a large model – adapts to complex construction environments.”Engineering machinery equipped with intelligent agents can adjust its operations automatically in response to weather conditions,” Li explained, adding that a spatiotemporal sensing network further enhances the system, providing real-time tracking of both personnel and materials throughout the construction site.
In February this year, Xianyuan Technology rapidly integrated its self-developed model with DeepSeek-R1, effectively blending a general-purpose framework with industry-specific models. This integration, Li noted, has produced a solution capable of delivering expert-level performance in challenging, dynamic environments. The firm is based in the Shanghai Foundation Model Innovation Center, aburgeoning AI incubator that now hosts over 200 innovative enterprises.
China’s technological transformation extends well beyond the construction sector. Overthe past three decades, the country has evolved from its initial forays into internet connectivity to becoming a key player in global digital innovation.
Here, a steady stream of technological innovations are emerging, from the early days of emails and web browsing to the cutting-edge technologies represented by DeepSeek and the dynamic evolution of social media.
Wu Jianping, an academician at the Chinese Academy of Engineering and headof the Zhongguancun Laboratory, pointed out that while China had introduced only one internet standard before 2005, it now contributes to over 200 worldwide. Such strides illustrate the country’s concerted push toward high-level technological self-reliance – a journey marked by both persistence and determination.
Beyond the digital realm, China is makingsignificant inroads in aerospace, new energy, and other high-tech sectors. It has transitioned from being a follower to standing shoulder-to-shoulder with global leaders, and in some areas, even taking the lead. Wu attributed these achievements to a dynamic ecosystem of policy reforms and talent cultivation that encourages creativity and technical expertise at every level.
Amid intensifying international competition, collaborative research and the integration of new technologies with traditional industries are central to China’s high-quality economic development.
Mei Linhai, a researcher at China’s State Key Laboratory of Cognitive Intelligence, remarked that the age of AI calls for continuous exploration. “In this era, everyone is an innovator. Only by persistently pushing the boundaries can we remain at the forefront of both technological and industrial development,” Mei observed.
In the field of general-purpose AI, Mei emphasized that independent innovation is paramount. He advocates for a self-driven industrial ecosystem that leveragesbreakthrough technologies to boost productivity and unlock new possibilities, Mei said.
Foreign
Chinese democracy in action:a village bench meeting shapes national law

By Wei Zhezhe, Liu Botong, People’s Daily
In a modest corner of Jiangmen, south China’s Guangdong province, residents of Weidong village are experiencing firsthand a form of democracy that starts at the grassroots level and reverberates all the way to Beijing.
Wu Tengxin, a local villager who relies on a scooter for daily mobility after contracting polio, recalls a time when the village’s public spaces were ill-equipped for people with disabilities. Now, thanks to a simple suggestion made during a meeting, his everyday life has changed.
In November 2022, a team from a local legislative outreach office – a branch of China’sNational People’s Congress (NPC) – visited Weidong village and set up a “bench-style meeting.” Residents, including the elderly and those with disabilities, gathered to voice their concerns about inadequate accessibility.
Amid the conversation, Wu offered a straightforward proposal: “I hope rural accessible facilities can be improved to make mobility easier for people with disabilities and the elderly.” His words were relayed verbatim to lawmakers.
The response was swift. On June 28, 2023, at the third session of the 14th NPC Standing Committee, legislators passed a law on building a barrier-free living environment. The law stipulates that improvements”shall align with social and economic development levels, coordinate urban and rural progress, and gradually narrow the gap in infrastructure between urban and rural areas.”
Today, Wu observes that the village’s main roads and public squares have been upgraded with accessibility features that make getting around considerably easier.
This episode illustrates what Chinese officials call “whole-process people’s democracy” – a system where citizen input is woven into every stage of policy development.
Jilie Ziri, head of Abuluoha village in Butuo county, southwest China’s Sichuan province, remarked that for young generations in China, democracy has become a lived experience. “Villagers are the masters of village affairs,” he said, emphasizing how active villager participation has injected new vitality into local governance.
Experts point to consultative democracy as a cornerstone of this process. Tao Kaiyuan, vice chairman of the Central Committee of the China Association for Promoting Democracy and vice president of the Supreme People’s Court, underscores the important role of the Chinese People’s Political Consultative Conference, whose members hail from every stratum of society and bring a wealth of expertise and connections.
Their regular forums, field research, and public consultations have created robust channels for citizens to contribute ideas and forge consensus.”This approach gathers collective wisdom and transforms public voices into policy,” Tao said.
Another crucial manifestation is the effectiveness of China’s political party system. Under the leadership of the Communist Party of China, Chinese democratic parties actively fulfill their duties, offering recommendations that often translate into concrete policy decisions. This integrated approach demonstrates the unique strengths of China’s political system and the advantages of whole-process people’s democracy.
Tao emphasized that whole-process people’s democracyhas evolved into an efficient and dynamic democratic practice – one that not only reflects the essence of socialist democracy but also presents a pioneering model of political civilization, contributing Chinese wisdom and solutions to global governance and democratic development.
Foreign
Chinese modernization: blueprint for global progress

By He Yin, People’s Daily
At China’s recent annual “two sessions,” Chinese modernization once again captured global attention. International observers are closely following a range of new measures designed not only to accelerate Chinese domestic transformation but also to unlock fresh opportunities for global development.
They believe that Chinese modernization, built on a foundation of openness and cooperation, will continue to yield global benefits with each new milestone.
Today, China stands as a formidable force in the global economy – accounting for around 18 percent of the global economy and nearly 30 percent of world manufacturing output. Year after year, the nation has contributed about 30 percent to global economic growth. With import and export records with almost all countries and regions designated in the United Nations Statistics Division, the country is a major trading partner for more than 150 countries and regions. In 2024, its exports to over 160 countries and regions saw growth.
Often hailed as the “world’s largest developing country,”the “second-largest economy,””world’s factory,””global market,” and “innovation powerhouse,” China is increasingly viewed as a beacon of stability and progress.
In recent years, high-profile events such as the seventh China International Import Expo – where intended deals exceeded $80 billion – and the establishment of over 1.239 million foreign-invested enterprises have reinforced the nation’s reputation as a vast, dynamic market.
Meanwhile, policies encouraging Chinese companies to “go global” have seen a steady stream of new technologies, goods, and services permeate international markets, knitting the country ever tighter into global value chains and bolstering its commitment to win-win cooperation.
The influence of Chinese modernization is evident far beyond its borders. In the Central African Republic, President Faustin-Archange Touadera has repeatedly screened China’s political documentary Carry the Reform Through to the End for cabinet discussions, while officialsin Uzbekistan are adapting China’s poverty-reduction experience to suit their national context. These moves challenge the assumption that modernization must follow Western models, suggesting that China’s alternative pathway offers a viable route to development.
Beyond economic growth, Chinese modernization is increasingly celebrated for its potential to foster win-win cooperation and shared prosperity.
Under the Belt and Road Initiative (BRI), for example, Kazakhstan secured its first maritime access and Laos launched its first modern railway. Support from the Global Development and South-South Cooperation Fund has propelled over 160 projects, benefiting more than 30 million people. Moreover, China has given all the least developed countries with which it has diplomatic relations zero-tariff treatment for 100 percent tariff lines, signaling its commitment to an open and inclusive global economy.
China’s modernization agenda also tackles global challenges head on. In response to global environmental risks, China advocates for building a community of all life on the Earth. To bridge the digital and AI divide, it has launched the AI Capacity-Building Action Plan for Good and for All to ensure that technological advancements benefit every corner of the globe.
On the security front, China continues to promote dialogue and reconciliation in conflict zones while engaging in multilateral security collaborations, reinforcing its reputation as a nation committed to peace and stability.
By proposing initiatives such as the Global Development Initiative, the Global Security Initiative, and the Global Civilizations Initiative, China is not just charting its own course toward modernization but championing an equal and orderly multipolar world and a universally beneficial and inclusive economic globalization – one that seeks to ensure that no nation is left behind on the path to prosperity.
The global appeal of Chinese modernization is far from accidental. Decades of reform and opening up have accelerated its development while enabling the country to contribute to global governance. On the international stage, it has taken on a leadership role – actively shaping global norms, building a community with a shared future for mankind, and advancing world peace and development. By sharing its successful experiences and technological advancements, the country seeks to help other developing countries chart their own courses toward progress.
With over 1.4 billion people engaged in this modernization journey – a number that surpasses the total population of all developed countries combined – China’s approach is redefining the global modernization landscape. For China, modernization is not solely a national endeavor but a blueprint for global progress – a vision that promises a more inclusive future for all.
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