Think Tank

'Research and development in China' witnesses' Chinese magnetic attraction '

2025-07-29   

Observing the development of foreign investment in China, "research and development" is an important dimension. Not long ago, the International Trade and Economic Cooperation Research Institute of the Ministry of Commerce released a report titled "Multinational Corporations in China", which showed that in the 10 years after 2013, the R&D expenses of foreign-funded industrial enterprises above designated size in China increased by over 86%, and the number of effective invention patents increased by 336%. The increasing willingness, scale, and achievements of foreign investment in research and development in China have propelled China's high-level opening-up to a new level. As an important component of China's scientific and technological innovation system, foreign-funded research and development centers have opened up international perspectives and accumulated international resources for the development of new quality productivity. Foreign funded enterprises attract and gather a large number of high-end talents from home and abroad, bringing advanced technology, management experience, and market opportunities, which can promote China's economic structural transformation and industrial upgrading. Meanwhile, foreign-funded enterprises have unique advantages in connecting domestic and foreign innovation resources, and are important interfaces for domestic R&D institutions to embed into the global innovation network. In recent years, China has become increasingly closely connected with the global industrial chain innovation chain in fields such as information technology, biomedicine, new materials, and new energy, which cannot be achieved without interconnectivity and mutual learning with foreign-funded enterprises. Foreign funded enterprises are eager to deepen their scientific research layout in China, driven by the "magnetic attraction" of China's unified large market. China has the world's largest middle-income group, with a large consumer market capacity and multiple levels, constantly unleashing consumption potential. The complete manufacturing industry chain and supply chain system, as well as the booming trend of technological innovation, provide a broad stage for foreign-funded enterprises to share development opportunities. The further integration of foreign-funded enterprises into the Chinese economic system is a witness, participant, and beneficiary of China's high-level opening-up to the outside world. The new trend of foreign investment in enterprises is also a powerful footnote to the accelerated development of China's new quality productivity and the industry's move towards the high-end of the value chain. Foreign funded enterprises take high-tech industries as their driving force, continue to increase investment in scientific research, and move towards the "new" and "high". For example, Volkswagen Group has established a new research and development center in Hefei, Anhui, introducing advanced technology into the early stages of product development to enable models and other products to respond more quickly to the needs of Chinese customers. Seizing opportunities for the development of new quality productive forces, foreign-funded enterprises have cast a "vote of confidence" in China's economic prospects through practical actions. Today's Chinese economy is undergoing a comprehensive and systematic upgrade from "whether it exists" to "whether it is good or not", and from "size advantage" to "quality advantage" under global attention. The stability and certainty of China's development provide a rare "safe haven" for foreign-funded enterprises to resist global economic fluctuations. In the first half of this year, the actual use of foreign investment in the e-commerce service industry, aerospace and equipment manufacturing industry, chemical drug manufacturing industry, and medical instrument and equipment manufacturing industry increased by 127.1%, 36.2%, 53%, and 17.7% respectively. Despite the intensifying headwinds of economic globalization and rising geopolitical risks, China continues to attract inflows of high-end service and manufacturing industries. This is a vivid proof of China's sharing of development dividends with the world, fully demonstrating the steadily increasing importance of the Chinese market. Walking with China is walking with opportunities, which is an important inspiration brought to the outside world by the vast ocean of the Chinese economy. BASF Germany has been investing in production in Pudong, Shanghai since 1994. Nowadays, the Pudong base is no longer a single production base, but a comprehensive base that integrates research and development, production, marketing, and sales functions; ArcelorMittal Group has signed a comprehensive strategic partnership agreement with Hunan Iron and Steel Group to build a global research and development center for automotive steel in Hunan... More and more foreign-funded enterprises have extended from "market-oriented" and "cost oriented" to "innovation driven", enhancing their competitiveness in the Chinese market and even the global market. Believing in China means believing in tomorrow, investing in China means investing in the future, and China will surely become a fertile ground for foreign investment and development in the long run. Expanding international scientific and technological exchanges and cooperation is an inevitable requirement for accelerating the implementation of the innovation driven development strategy, and also a firm choice for achieving mutual promotion of domestic and international dual circulation. We look forward to foreign-funded enterprises continuously cultivating the Chinese market, integrating more closely into the Chinese industrial chain, sharing the dividends of China's high-quality development, and achieving win-win development in China and benefiting the world. (New Society)

Edit:Luo yu Responsible editor:Wang er dong

Source:people.cn

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