China attracted broad investor interest.

Global manufacturers are eager for opportunities ahead of CIIE.

https://youtu.be/VXVRlQ9dBhQ

With China's recent removal of all market access restrictions for foreign investors in the manufacturing sector, executives from multinational corporations attending the seventh China International Import Expo (CIIE) have expressed plans to invest more resources in the country, particularly in high-end manufacturing.

This year’s CIIE, taking place in Shanghai from Tuesday through November 10, will showcase over 400 new products, technologies, and services in advanced fields like high-end equipment, advanced materials, and marine engineering, according to the Ministry of Commerce.

China’s latest national negative list for foreign investment, which went into effect on Friday, has eliminated the last two restrictions related to manufacturing, further opening up the sector to global investors, per the National Development and Reform Commission.

Sun Xiao, secretary-general of the China Chamber of International Commerce, noted that China’s strengths in innovation, transformation in business models, and various free trade agreements are drawing many global manufacturers to invest in innovation centers, expand production, and boost digital transformation within the country.

Sun added that manufacturing was China’s earliest sector to open to foreign investors, and it remains highly competitive and well-integrated with the global industrial landscape.

Schneider Electric, a French industrial and technology company that has participated in the CIIE seven times, plans to highlight new digital, automation, and electrification technologies at this year’s event. This aligns with the company’s “China Hub” strategy, reflecting its long-term commitment to the Chinese market.

Yin Zheng, Schneider Electric’s executive vice president for China and East Asia, noted that China has become Schneider’s second-largest market globally and one of its four major research and development hubs. “Through CIIE, we aim to deepen ecosystem cooperation and collaborate with more Chinese industry partners to develop high-quality productive forces,” he added.

Arthur Xu, president of Danfoss China, stated that Danfoss, a Danish engineering firm, will present its solutions for data centers, water and wastewater treatment, marine, food and beverage, and heat recovery industries, emphasizing the company’s focus on supporting China’s green transition.

In addition to starting construction in April on a new manufacturing facility in Jiaxing, Zhejiang Province—slated to become one of Danfoss’ largest production sites—the company recently completed a work campus in Nanjing, Jiangsu Province. This new campus will focus on producing specialized transistor modules and electric and hybrid powertrain systems.

As foreign investment in China continues to diversify, the high-tech manufacturing sector alone attracted 77.12 billion yuan ($10.87 billion) in foreign direct investment during the first three quarters of 2024, making up 12% of the national total and marking a 1.5 percentage point increase year over year, according to the Ministry of Commerce.

Tang Wenhong, assistant minister of commerce, emphasized that China’s comprehensive industrial system, ongoing commitment to openness, and efforts to grow high-tech manufacturing remain key factors driving foreign investment in the country.

Nipsea Group, a paint and coating manufacturer from Singapore, will debut at the CIIE with a 300-square-meter exhibit. Eric Chung, CEO of Nippon Paint China, a subsidiary of Nipsea, stated, “Transitioning from observer to participant at CIIE this year demonstrates our commitment to the Chinese market and our dedication to supporting China’s high-quality economic development.” The company will present its latest automotive coatings and marine paint products at the expo.

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China holds wide appeal for investors

Global manufacturers express interest in nation's opportunities ahead of CIIE

Motivated by China's complete removal of market access restrictions for foreign investors in the manufacturing sector, executives from multinational corporations attending the seventh China International Import Expo said they will deploy more resources in the country, with a particular focus on high-end manufacturing.

This year's CIIE, scheduled in Shanghai from Tuesday to Nov 10, will debut more than 400 new products, technologies and services across advanced sectors, including high-end equipment, advanced materials and marine engineering products, according to the Ministry of Commerce.

The latest edition of China's national negative list for foreign investment, which took effect on Friday, has removed the last two manufacturing-related restrictions, further opening the sector to global investors, according to the National Development and Reform Commission.

Attracted by China's innovation capability, business model transformation and bilateral and multilateral free trade deals, many global manufacturers are increasingly inclined to invest in new innovation centers, expand production capacities and advance digital transformation initiatives within the country, said Sun Xiao, secretary-general of the China Chamber of International Commerce.

For China, the manufacturing industry is the earliest sector to open up to foreign investors, and it is also the most competitive, with a high level of integration with the global industrial division of labor, said Sun.

Schneider Electric, a French industrial and technology group and a seven-time participant at the CIIE, will present at this year's event new concepts, products, services and applications that combine digital, automation and electrification technologies, underscoring its commitment to China through its "China Hub" strategy.

Yin Zheng, executive vice-president of Schneider Electric's China and East Asia operations, said that China has become Schneider Electric's second-largest market in the world and one of its four global research and development bases.

"Through the CIIE, a world-class communication platform, we aim to continuously deepen ecosystem cooperation and work with more Chinese industrial partners to jointly build new quality productive forces," he added.

Arthur Xu, president for China at Danfoss Group, a Danish engineering company, said that Danfoss will bring its products and solutions in the data center, water and wastewater treatment, marine, food and beverage, and heat recovery fields, among others, to the CIIE this year. These proven solutions will offer unique value for China's green transition, he said.

In addition to plans to begin construction in April in Jiaxing, Zhejiang province, on its new manufacturing facility, which will be one of the biggest production sites in Danfoss' history, the company also announced in September that it has completed construction of a work campus in Nanjing, Jiangsu province.

The new campus is dedicated to the innovation and production of specialized transistor modules as well as electric and hybrid power train systems.

With the structure of foreign investment continuing to be optimized, China saw the high-tech manufacturing sector use 77.12 billion yuan ($10.87 billion) in foreign direct investment in the first three quarters of 2024, accounting for 12 percent of the national total, according to the Ministry of Commerce. That is an increase of 1.5 percentage points from the same period last year.

Tang Wenhong, assistant minister of commerce, said that China's well-developed industrial system, commitment to continued openness, and efforts to scale up high-tech manufacturing remain key drivers for foreign manufacturers' investment in the country.

Nipsea Group, a Singapore-based paint and coating manufacturer, will make its debut as a participant at the CIIE this week with a 300-square-meter booth.

"This year, we have officially transitioned from being a witness to a participant at the CIIE, presenting our latest products and technology solutions," said Eric Chung, CEO of Nippon Paint China, a subsidiary of Nipsea Group.

"This move not only underscores our unwavering commitment to the Chinese market, but also reflects our firm determination to contribute to the high-quality development of China's economy," Chung said, adding that the company will showcase its newest automotive coatings and marine paint products at the expo.

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By ZHONG NAN in Shanghai | CHINA DAILY | Updated: 2024-11-05 06:51

zhongnan@chinadaily.com.cn

https://www.chinadaily.com.cn/a/202411/05/WS67294feea310f1265a1cb639.html