'China Opportunity 2.0' knocks for global economy

Opening-up drive

In a world facing rising protectionism and geopolitical tensions, multinational corporations are looking to deepen their investment in China as a hedge against external shocks, said Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation.

He attributed foreign investors' willingness to expand their presence in China to the resilience and long-term growth prospects of the Chinese economy, coupled with the country's sustained market-opening efforts and investment facilitation measures.

China is doubling down on opening its market, removing all restrictions on foreign investment in manufacturing, shortening the nationwide negative list for foreign investment access to 29 items, with further opening-up increasingly focused on the services sector.

The policy push gathered further momentum in June, when China unveiled a 15-point action plan aimed at stabilizing foreign investment and improving its quality. The measures cover broader market access, greater investment facilitation, stronger investment promotion and services, and improved foreign investment management.

The plan places particular emphasis on opening up services, finance and pharmaceuticals, while addressing key concerns of foreign businesses ranging from cross-border mergers and acquisitions and data flows to reinvestment in China.

The push for greater openness is also creating more room for international cooperation in frontier technologies. In July, the National Development and Reform Commission and other government departments unveiled an action plan to deepen international cooperation on AI, with measures to increase the supply of high-quality data, broaden access to computing power, promote opensource development and strengthen digital and AI capacity building in developing countries.

Together, wider market access and deeper innovation cooperation are enhancing China's appeal as a long-term investment destination.

Marc Princen, global CEO of pharmaceutical company Mundipharma, said China's sustained commitment to reform and high-standard opening-up continues to "strengthen market predictability and long-term investment confidence".

Andre Musto, managing director and general manager of Merck Healthcare China, said high-standard opening-up helps establish clear rules, transparent market access and predictable regulatory pathways for multinational companies.

Policy push

Looking to the second half of the year, experts said stronger macroeconomic support, together with continued efforts to stabilize trade and investment, will be crucial to sustaining growth momentum amid lingering external uncertainties.

"China's economic fundamentals remain sound, with strong resilience and ample growth potential, and the long-term positive trajectory has not changed," Yin, from the CPPCC National Committee, said. He added that the economy faces both favorable conditions and a number of risks and challenges.

To consolidate the recovery, Yin called for stronger countercyclical adjustment, saying China should make full use of available fiscal and monetary policy space while preparing additional policy measures that can be rolled out when needed.

He also called for stronger efforts to unlock domestic demand, accelerate major investment projects and foster new growth drivers, particularly through the broader application of artificial intelligence and the digital transformation of manufacturing and services.

"Foreign trade has been an important support for economic growth this year, and that strength should be consolidated in the second half," Yin said.

Wang Xuekun, head of the Chinese Academy of International Trade and Economic Cooperation, said further efforts should focus on tapping new sources of trade growth, with AI-related supply and demand offering fresh opportunities.

On foreign investment, Wang said a priority is to proactively address foreign investors' concerns about market access and translate opening-up commitments into concrete measures.

He called for a clearer opening-up road map for future-oriented sectors, including advanced manufacturing and AI infrastructure, giving global businesses greater room to participate in China's next wave of industrial upgrading.

"Capital from Hong Kong and the Middle East is playing an increasingly important role in foreign investment," Wang said, calling for more tailored services and fast-track channels to attract such investment.

For foreign companies already operating in China, greater emphasis should be placed on encouraging reinvestment and further expansion, he added.