A resilience-driven future: Global companies anchor growth in China

As 2026 gets underway, the trajectory of foreign investment in China is increasingly defined by structural upgrading and deeper local integration. Recent surveys from major international chambers, alongside strategic shifts by global companies, highlight a resurgent confidence in the Chinese market's long-term potential.

Deepening roots: A vote of confidence

The latest barometers of foreign sentiment reveal a stabilized and optimistic outlook. According to the 2025/2026 Business Confidence Survey Report by German Chamber of Commerce in China (AHK China) shows that 93 percent respondents intend to remain engaged in the Chinese market.

This sentiment is matched by American counterparts: the 2026 China Business Climate Survey Report by the American Chamber of Commerce in China (AmCham China) reports that 52 percent of member companies rank China among their top three global investment destinations, a four-percentage-point increase from the previous year.

Furthermore, profitability expectations are on the rise. Michael Hart, President of AmCham China, noted in an interview with the China Media Group (CMG) that profit margins for U.S. firms in the services and consumer-related sectors have seen distinct improvements.

"China remains a premier supply chain base," Hart remarked, citing the vast consumer scale as a primary driver for continued investment. AmCham China Chairman James Zimmerman further characterized this era as one of "resilience," emphasizing the ability of businesses to adapt and thrive amid shifting economic landscapes.

Deepening localization and R&D: From 'in China' to 'with China'

The strategic focus of international firms is shifting toward advanced localization. Dr. Martin Hofmann, Chairperson of the German Chamber of Commerce in North China, noted that sophisticated partnerships and a third wave of localization – centered on research and development – have become essential for firms to strengthen their market position.

Chinese partners are increasingly becoming a cornerstone of corporate strategy, noted the AHK survey report. This shift highlights a market whose appeal is now inextricably linked to its status as a global innovation hub. According to the survey, 56 percent of German companies are actively pursuing deeper integration with local peers, while 60 percent of respondents – a record high – now view Chinese firms as frontrunners in innovation.

In Jiangsu, Bona Environmental Equipment (Taicang) Co., Ltd. recently opened its new Asia-Pacific headquarters, a 500-million-yuan project that nearly doubles its factory footprint. Yang Xinhua, General Manager of Bona, told CMG that the company plans to invest an additional 200 million yuan in equipment upgrades through 2028.

"This ensures we meet the demands of not only China but the entire Asia-Pacific region," Yang said.

Similarly, Dr. Jonathan Paddison, Member of the Executive Board of the German-based Knorr-Bremse Asia Pacific, highlighted the move toward high-tech production.

"Having operated here for 20 years, it is now the right time to integrate more automation and digital solutions into our manufacturing," Paddison told CMG, adding that these upgrades are essential to prepare the group's production for future demands.

Policy tailwinds and innovation hubs

External policy support is also playing a role in creating new opportunities.

Jussi Herlin, Executive Vice Chair of the Board of KONE Corporation, a Finnish multinational elevator and escalator company, pointed to the positive impact of China's "two new" policy, which refer to large-scale renewal of equipment and the trading-in of consumer goods. The business has found new momentum supported by these initiatives and the allocation of ultra-long special treasury bonds last month designed to fund equipment renewal projects across key sectors.

While global trade complexities persist, the underlying data suggests that China remains a central link in global supply chains. As 57 percent of AmCham members plan to expand their investments, the emphasis for international firms has moved toward leveraging local innovation and fostering deeper strategic partnerships to ensure sustainable growth in a changing global economy.