An aerial drone photo taken on April 25, 2025 shows a cargo ship navigating at Tianjin Port in north China's Tianjin. (Xinhua/Zhao Zishuo)

BEIJING, April 29 (Xinhua) -- In an increasingly unpredictable global environment, China is becoming an "oasis of certainty" as it continues to build up industrial strength and foster institutional opening-up, drawing influential foreign investors from tech giants to automakers into the world's second-largest economy.

Latest data from the Ministry of Commerce shows that foreign direct investment (FDI) in the Chinese mainland in actual use climbed by 13.2 percent year on year last month. In the first quarter (Q1) of 2025, 12,603 new foreign-invested enterprises were established nationwide, representing a year-on-year growth of 4.3 percent.

ANCHOR FOR GLOBAL ECONOMIC GROWTH

At a petrochemical plant rising a hundred meters from the ground, the sounds of welding, cutting and roaring interweave...The over 80 billion yuan (about 11 billion U.S. dollars) cooperation project co-invested by Saudi oil giant Aramco and Chinese enterprises in Panjin, northeastern Liaoning Province, has progressed to more than 60 percent.

Aramco is currently investing in projects in China that have a collective and total value of over 240 billion yuan, covering petrochemical projects and equity acquisition deals. "China is already the world's largest consumer and producer of petrochemicals, accounting for nearly half of global demand," said Amin H. Nasser, president and CEO of the company. He noted, "China is becoming an oasis of certainty in an increasingly unpredictable global environment."

Since the start of this year, more and more foreign brands from various sectors have beefed up investment in China, leveraging its super-large market advantage. For example, fast fashion brand Zara opened its Asian flagship store in Nanjing, while U.S. hair care brand Aveda opened its first store in south China in Guangzhou. German retail giant ALDI entered China's Jiangsu market.

Besides a vast market size, China's crucial role in fueling world economic growth has been harnessed by solid economic fundamentals and a stable policy framework, according to foreign institutions.

China's gross domestic product registered a 5.4 percent year-on-year growth in Q1. This expectation-beating performance is attributed to the fact that it has increased fiscal spending, vigorously boosted consumption, and introduced a series of measures to stabilize the property market and the stock market, Nathan Chow, senior economist at DBS Bank said.

The stable growth momentum in China's economy is a stability that serves as an important global public good, helping to buffer uncertainties across international markets, said Bernd Einmeier, president of the German-Chinese Association for Economy, Education, and Culture.

According to the 2025 Kearney Foreign Direct Investment Confidence Index, which measures investor expectations for FDI over the next three years, China has led all emerging markets for three consecutive years. The market is expected to become a "stabilizer" for business confidence worldwide, with its steady growth, open attitude and innovative vitality, said He Xiaoqing, president of Kearney Greater China.

This photo taken from Jingshan Hill on Aug. 12, 2024 shows the skyscrapers of the central business district (CBD) on a sunny day in Beijing, capital of China. (Xinhua/Li Xin)

INDUSTRIAL STRENGTH, INNOVATION DRIVE

Industry experts believe China's industrial strength and innovation drive have become key factors drawing foreign investment. At the same time, its market solidifies its crucial role in the integrated development of global industries, contributing to economic growth.

During an earlier business trip to China, Apple's COO, Jeff Williams, visited the company's supplier, Goertek, in east China's Shandong Province and praised its automated manufacturing and artificial intelligence technology on the production lines. Among the company's top 200 suppliers worldwide, more than 80 percent have factories in China engaging in related businesses.

China's ability to integrate industrial chains is almost irreplaceable on a global scale, whether in terms of engineer supply, industrial supporting capabilities, or scale advantages, noted Xing Ziqiang, chief economist at Morgan Stanley China.

This has attracted more and more foreign investment into the global manufacturing powerhouse and innovation hub, with Toyota committing to a 14.6-billion yuan strategic cooperation agreement in Shanghai, and AstraZeneca signing a landmark agreement to invest 2.5 billion U.S. dollars in a global strategic research and development center in Beijing.

In Rugao City of east China's Jiangsu Province, welding robots are busy on the production lines of Swedish truckmaker Scania. "The Scania Rugao Industrial Hub, the most advanced and sustainable in Scania's world, will add significant capacity to Scania's global production system, easing previous bottlenecks and benefiting both the Chinese and global markets," said Ruthger de Vries, president of Scania Industrial Operations Asia.

An aerial drone photo shows visitors enjoying the cityscape at The Stage, a new observation deck atop White Magnolia Plaza in Shanghai, east China, April 14, 2025. (Xinhua/Liu Ying)

INSTITUTIONAL OPENING-UP ACCELERATES

Translating its opening-up pledge into concrete actions, China's growing economic openness spanning various sectors has further cemented its position as the world's second-largest FDI destination.

While all restrictions on foreign investment in the manufacturing sector were removed in China last year, the country has now extended its opening-up efforts to the service sector. China approved value-added telecommunications business operations of 13 foreign-funded enterprises in Q1, according to the Ministry of Industry and Information Technology (MIIT).

The number of foreign-invested telecommunications enterprises surged 26.5 percent from a year earlier and topped 2,400 in China at the end of last month. Over 40 foreign-funded biotechnology projects have kicked off, and three new wholly foreign-owned hospitals have been approved for operation by late March, according to the country's commerce ministry.

The constant opening-up in China's service sector has brought new development opportunities to foreign-funded enterprises and injected confidence into deepening the Chinese market, said Jacqueline Jiang, chair of the Chinese mainland at John Swire & Sons. Last month, a subsidiary of the group obtained the first foreign-owned cardiovascular specialty hospital practice license in China.

In the financial sector, an increasing number of foreign financial institutions have cast a vote of confidence in China by establishing new securities entities and expanding the scope of their existing businesses in recent years, with the latest move by UBS increasing its equity stake in UBS Securities from 67 percent to 100 percent.

Despite deficits in service trade, China seeks to further open sectors like medical and internet services in a well-conceived way. Pilot opening-up programs in free trade zones and select cities have been accelerated, with wholly foreign-owned hospitals now allowed in certain areas. According to the MIIT, China seeks to remove restrictions on the percentage of foreign capital for service businesses such as app stores and internet access in certain regions.

"In China, foreign companies can invest here because they find a good business environment, and those investments are also long-term and not only short-term," said Maximilian Butek, executive director and board member of the German Chamber of Commerce in China, the east China region.

"We have a strong business commitment here in China," he added.