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For MNCs, success requires clarity, commitment, agility

By Zhong Nan | China Daily | Updated: 2025-04-07 00:00
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During an interview at the guest room of a home appliances store in China World Mall in Beijing in mid-March, Hubert de Haan, senior vice-president for China of Germany's BSH Home Appliances Group, sipped his coffee thoughtfully, while stressing that China "is still worth it".

His words may sound simple, but they echo a sentiment that is far more nuanced.

After tracking China's economic policies for years, I have learned that understanding this market takes more than just reading headlines — it requires diving into the details, including the numbers, the policies, and, perhaps most importantly, the momentum foreign business executives feel when they are actually here on the ground.

That momentum is driven by powerful fundamentals that continue to matter to global investors.

At the center is China's vast consumer market.

Its massive population powers a consumption engine that is constantly evolving. As the middle-income group expands, so does demand for better products, smarter services and improved experiences. Foreign businesses aligned with this shift are discovering more opportunities and more discerning customers.

Fueling this demand is a manufacturing ecosystem unmatched in scale and integration. From raw materials to finished goods, China's industrial chain enables end-to-end production. This efficiency lowers costs and boosts responsiveness, a critical advantage in today's volatile global environment.

Enabling it all is world-class infrastructure. High-speed railway networks, expressways, ports and airports form a logistics network built for speed and volume. For firms managing complex supply chains, China offers rare reliability and often outperforms global peers.

The talent pool is another strength.

Beyond sheer numbers, China's workforce is increasingly skilled. Advances in education and training have elevated its human capital. Today, it is not just labor, its engineers, designers and digital specialists are ready to scale with demand.

Digitally, China has leapt ahead. From mobile payments to artificial intelligence labs, it is now one of the world's most dynamic digital economies. For companies in e-commerce and fintech, opportunity here is not abstract, it is immediate and immense.

Moreover, I can tell that the value proposition is evolving. It is no longer just about scale or speed. It is about strategic alignment with China's innovation agenda. As supply chains reconfigure and consumption matures, the country is prioritizing high-tech, knowledge-driven investment.

As foreign direct investment in China is shifting away from labor-intensive operations toward research and development hubs, innovation centers and green tech, it brings new opportunities and higher expectations. Market entry thresholds are rising, and success requires more than capital.

Today, investment means adaptability, foresight and trust. Only global players with the right products, services and market approaches have the capability and confidence to compete here.

These messages were not just confined to individual interviews. It echoed throughout the China Development Forum 2025, held in Beijing in late March. In a world facing rising protectionism and economic uncertainty, top executives of leading multinational corporations believe openness and collaboration have never been more essential — for countries to keep markets accessible, and for businesses to work together toward shared solutions and sustainable growth.

Among them was Georges Elhedery, group chief executive of HSBC Group, who said his company expects China to remain an engine for global growth in 2025 and across this decade. In the long run, China will remain a thriving, sustainable economy, firmly at the center of global trade and investment, and at the forefront of innovation.

In this new landscape, it is no longer about which multinational corporations can enter. It is about who can last, and who can lead.

So yes, as de Haan from BSH China said, China is still worth it. But success here demands more than just showing up. It requires clarity, long-term commitment and the agility to grow with China, not just in it.

 

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