Foreign companies continue to invest heavily in China, highlighting recognition of the vitality of China's market.

German investment in China has risen to a record high recently. Figures from Germany's central bank, the Bundesbank, show that the country's total direct investment in China hit 7.3 billion EUR in the first half of 2024, compared with 6.5 billion EUR for the whole of 2023. Notably, its direct investment in China in the first quarter of this year was nearly 2.5 billion EUR, and soared to 4.8 billion EUR in the second quarter.

Danielle Goh, an analyst at US-based research group Rhodium Group, said the strong momentum of German investment in China would continue through the rest of the year, according to the Financial Times.

According to an article by Singapore's Lianhe Zaobao, automakers are the main force behind German companies' investment in China. This is echoed by Professor Adam Tooze of Columbia University, who believes that German automakers know that they must not lose the Chinese market, because it represents the direction of the global auto industry. Withdrawing investment from China is equivalent to exiting the auto industry, Tooze said.

Meanwhile, on the tail of many multinational companies increasing their investment in China, "Investing in China" is becoming a new trend for more and more foreign companies.

According to data released recently by China's Ministry of Commerce (MOFCOM), from January to July this year, 31,654 new foreign-invested enterprises were established nationwide, an increase of 11.4 percent year-on-year.

The 2024 Kearney Foreign Direct Investment Confidence Index report, released in April by the management consulting firm Kearney, has upgraded China's ranking from seventh to third, just after the U.S. and Canada.

This year, survey respondents cited technological and innovation capabilities as their primary priority in selecting investment destinations, according to Kearney. And the preference for technologically advanced markets is also reflected in 2024's top three markets on the Index: the U.S., Canada, and China.

Amway, one of the world's largest direct-selling companies, announced that it is ready to fully embrace unlimited growth potential in China. According to the President of Amway China Yu Fang, the 10th capital increase in China will see an investment of 600 million RMB to upgrade their production base in Guangzhou, support their supply capacity for innovative products led by Chinese R&D, and the Chinese market's role as a hub and innovation center.

Kevin Binder, CFO of Mercedes-Benz (China) Investment Co. Ltd, said in the past five years, the company has invested over 10 billion RMB in innovation and R&D alone, adding that the company will invest more in China, not only in the production and technology departments, but also in product R&D. "Digitalization, innovation, and electrification transformation will be focused [on]," Binder said.

China's development is open to the world, and so is its huge market. The country's imports and exports, passenger and cargo volume, as well as consumption, have all led to a continuous increase in investment confidence of multinational companies.

As the Ministry of Foreign Affairs remarked, "Our message to businesses around the world: invest in China, flourish in China and succeed in China."