Despite growing global economic uncertainty, multinational companies continue to expand their operations in China, drawn by what they describe as a strong industrial ecosystem, large consumer market and relatively stable policy environment.
Analysts and corporate executives say China’s integrated supply chains and manufacturing depth are encouraging foreign firms not only to maintain their presence but to further localise production and use the country as a regional and global production base.
One example is Canada-based McCain Foods, which operates a major facility in Yangling, Shaanxi province. The plant, valued at around 200 million US dollars, produces up to 100,000 tonnes of French fries and related products annually and began operations in 2023.
Company officials said the project reflects the speed and efficiency of China’s business environment. Over three decades in China, McCain has built a full agricultural supply chain, working with local farmers on more than one million mu of farmland and generating over 100,000 jobs, according to company data.
In the semiconductor sector, Samsung Electronics has significantly expanded its presence in Xi’an, where its NAND flash memory facility now accounts for a substantial share of global output. The company’s continued investment has helped develop a broader industrial cluster involving more than 40 Korean-funded enterprises.
Local officials say the Xi’an development zone has attracted billions of dollars in cumulative investment, creating a complete semiconductor ecosystem covering design, manufacturing, packaging and materials.
Foreign investment trends are also visible in aerospace manufacturing. European aircraft manufacturer Airbus has expanded its final assembly operations in Tianjin, reflecting China’s growing role in global aviation supply chains.
According to China’s Ministry of Commerce, more than 8,600 new foreign-invested enterprises were established in the first two months of 2026, while high-tech foreign investment rose by over 20 percent year-on-year.
Economists note that China’s ability to integrate large-scale industrial networks remains a key attraction for global firms. Many companies, they say, are increasingly using China not only as a consumer market but also as a production and innovation hub.
Despite global geopolitical and economic headwinds, analysts observe that multinational firms are continuing to embed themselves more deeply in China’s industrial landscape rather than scaling back operations.