Foreign Companies Benefit from Fair Competition in China

Recent insights from industry leaders indicate that foreign companies are experiencing a more favorable business environment in China, thanks to various initiatives aimed at enhancing transparency and driving down operational costs. Sherri He, the Managing Director of Kearney Greater China, emphasized that the key to instilling confidence in foreign investment relies on effectively translating macroeconomic policies into clear, predictable, and actionable regulations.

He elaborated that by establishing explicit compliance guidelines, allocating reasonable transition periods, and promoting inter-departmental collaboration, fragmented regulatory oversight can be streamlined into cohesive services. This move is expected to significantly lower compliance costs for businesses. Furthermore, He highlighted that the predictability afforded by transparent regulations and consistent enforcement plays an essential role in attracting global capital to flourish in China.

According to the latest Kearney Foreign Direct Investment Confidence Index, China has consistently ranked among the top ten countries for foreign direct investment for four years running, and has been a leader in emerging markets for the past three years. This trend underscores the robust resilience and allure of China as an investment destination for foreign investors.

Ding Hongyu, president of 3M China, echoed these sentiments, noting that the ongoing improvement of China's policy landscape not only reflects the nation's commitment to opening its markets but also significantly boosts foreign companies' confidence in their long-term prospects in the country. He pointed out advancements in intellectual property protection, enhancing the open and competitive business environment that inspires greater confidence among enterprises.

The 3M China R&D Center located in Shanghai represents a crucial part of the company's global innovation strategy, with plans in 2026 to ramp up local product development and new product launches, targeting over 30 percent growth, far exceeding growth expectations in other markets.

Joe Bao, president of KONE Greater China, shared a successful initiative pertaining to the replacement of outdated elevators in Kunshan, Jiangsu Province. Residents were given the opportunity to choose their preferred brands, enabling KONE to secure a contract for 2,106 elevators, accounting for 96 percent of the total bids. Impressively, the refurbishment process was completed within eight months without any reported accidents.

Joe Bao highlighted this project as clear evidence that foreign enterprises in China benefit from equal competitive conditions and can gain market trust based on their capabilities. Additionally, the government's recent work report underlines intentions to expand market access, particularly in the service sector, and to ensure national treatment for foreign-funded enterprises, which signals an ongoing commitment to increased market openness.

Ding Hongyu further noted that China's strategic focus from design to implementation is aimed at bolstering the fundamental role of enterprises in innovation. The objective is to cultivate an ecosystem that intimately connects industry, academia, research, and practical applications. Such policies are believed to assist foreign companies in better assimilating into China's innovation framework and leveraging their technologies to enhance the upgrade of industrial chains.

KONE is strategically targeting growth in the Guangdong-Hong Kong-Macao Greater Bay Area, where Joe Bao mentioned that the company established its southern headquarters in Qianhai, Shenzhen last year. Operations are expected to commence by the end of March, emphasizing maintenance and upgrades in line with China's regional coordinated development strategy, which is anticipated to foster a stronger industrial ecosystem and improve resource allocation.

Stephen Fung, president of Fung Group China, emphasized that China's approach to foreign trade during the 15th Five-Year Plan, particularly under the Belt and Road Initiative, showcases a robust commitment to fostering high-standard openness. Fung Group prioritizes facilitating the global expansion of Chinese enterprises through its established global supply chain network, promoting their steady integration into international industrial chains.