Multinational companies deepen China footprint with greater localization

As global trade tensions escalate and geopolitical risks buffet economic growth, China has maintained steady expansion and policy consistency, offering a rare anchor for international investors, and multinational corporations are responding by deepening their footprint in the world's second-largest economy.

In the first four months of the year, the number of newly established foreign-invested enterprises in China rose 6.8 percent year-on-year to over 20,000, with more than 3,000 existing firms expanding their investments, according to the Ministry of Commerce.

High-tech foreign direct investment surged 20.3 percent year-on-year during the same period, accounting for 40.4 percent of total utilized foreign capital, a 10.3 percentage point increase from a year earlier.

The numbers are reflected in the real-world decisions of multinational corporations. At the 28th China International Bakery Exhibition in Shanghai, global dairy cooperative Fonterra's Anchor Food Professionals unveiled a whipping cream product tailored for the Chinese market — a global first for the brand.

"China has always been one of Fonterra's most important strategic markets," said Teh-han Chow, president of Fonterra's global food service business and CEO of Fonterra Greater China.

True value lies not just in providing quality dairy, but in co-creating with Chinese customers, combining New Zealand grass-fed dairy with local consumer insights to drive localized innovation, Chow added.

Anchor now serves bakery, restaurant and beverage clients in more than 500 Chinese cities, offering customized solutions. In retail, the brand has expanded its presence in supermarkets, e-commerce and new retail channels with products ranging from milk powder and butter to cream and cheese.

"Going forward, Anchor will continue to support the high-quality development of China's bakery and food service industries, working with local partners to drive growth through high-value innovative dairy solutions," Chow said.

In recent years, multinational brands like Anchor have significantly deepened their local footprints, embedding R&D, supply chains and talent development into China's innovation ecosystem.

Amsterdam-based lighting company Signify is optimistic about the Chinese market, and aims to increase local research and development investment to build a people-centered and efficient intelligent ecology.

China has become Signify's "second home", said Karl Yin, CEO of Signify Greater China.

Signify has established a joint laboratory with The National Innovation Center par Excellence, a comprehensive national technology innovation center based in the Yangtze River Delta, to research AI lighting, circadian lighting technology and low-carbon materials.

"We will continue to strengthen our R&D, innovation and service capabilities in China, accelerating the integration of cutting-edge technology with lighting products to provide smarter, greener solutions for the Chinese market," Yin said. "Our strategy is 'in China, for China, for the world'."

Wang Xuekun, head of the Chinese Academy of International Trade and Economic Cooperation, said, "Investment is moving forward resiliently amid turbulence, with robust growth in emerging fields like AI and clean energy, though some traditional sectors are seeing contraction, and future growth still faces significant fragility."

In response to the uncertain external environment, China has doubled down on its strategy of high-level opening-up, Wang said, adding that the country will promote the deep integration of industrial and technological innovation, build a modern industrial system and expand domestic demand.

"We will create a world-class business environment and provide multinational corporations with stable, predictable institutional guarantees and vast market space," he added.