China - September 23, 2024

China's innovation edge spurs foreign investment growth

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Foreign companies are continuing to invest in R&D for their operations in China, as the country expands its technological innovation.

Swiss multinational Buhler Group, a global market leader in food processing technology, set up its largest production base for animal feed processing equipment in east China's Jiangsu Province.

It also built an R&D center near the plant, which managers say greatly streamlines the research and production process.

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Zhao Xiaohu, vice-manager, Buhler (Changzhou) Machinery Co., Ltd.:

"This ensures timely communication between the factory, the research and development center, and the market, allowing our company to respond swiftly to both domestic and international markets."

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China's resilient industrial supply chains, and its innovation capabilities are often named as reasons that companies decide to invest in China.

Global mining giant Rio Tinto has recently renewed an eight-year contract with a Chinese conveyor belt company for those exact reasons.

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Dominic Barton, chairman, Rio Tinto:

"So, some of our most critical capital equipment that we use in thirty-five countries that we are operating around the world come from China. That again reflects how China has changed since the IP, it's the capability."

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Data from China's Ministry of Commerce shows that actual foreign direct investment into China reached about 75 billion U.S. dollars in the first seven months of the year, with one third of that coming from the manufacturing sector.

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