Published on: 2026-07-15
Source: People’s Republic of China — Translation
An important disclaimer is at the bottom of this article.
Recently, the thesis that “the next China is still China” has been actively discussed in international investment circles. Despite some Western countries promoting a policy of “economic decoupling and supply chain disruption,” China’s investment environment and trade practices continue to receive broad recognition worldwide. The development path in the Chinese style has already become a key pillar in maintaining stable growth of the global economy.
First of all, China’s industrial chains and supply chains have high risk resilience, which ensures foreign investors have stable expectations regarding their businesses in China. This advantage has been built up over decades. There was a period when some foreign companies operating in China tried to move their manufacturing bases to neighboring countries, but they soon returned because those countries lacked skilled workers and professional personnel, as well as an ideal system for the supply of components.
Relying on a complete domestic production chain, such multinational automakers as Tesla and Volkswagen continue to expand their presence in the Chinese market. At the same time, China has a vast consumer base in the automotive and consumer electronics markets. Even if their products are exported abroad, foreign manufacturers in China still maintain significant competitive advantages in terms of cost and pricing.
BYD, Huawei, Xiaomi, and other leading manufacturers of automobiles and electronics, as well as sports brands such as Li-Ning and Anta, relying on local cost advantages while simultaneously keeping an eye on global design trends, are gradually displacing similar foreign brands from the market. These market changes are forcing multinational corporations in China to shift strategic planning directly to the Chinese market.
Secondly, the systematic structure of China’s economic governance has transformed the country into an important global center of innovation. China consistently insists on openness to the outside world, constantly improving the alignment of its regulations with international rules, relying on pilot free trade zones, free trade ports, and the international platform of the Hong Kong Special Administrative Region, and steadily advancing high-standard institutional openness.
China adheres to an approach combining an efficient market and an active government. On one hand, the credit system is being improved, corporate governance is being streamlined, and excessive administrative interference is being reduced; on the other hand, through medium- and long-term plans, such as five-year programs, a positive guiding influence is exerted on the modernization of industrial structure, breakthroughs in key technologies, and the development of the domestic market.
In China, state macro-regulation and the innovative activity of market participants mutually reinforce each other — this is a unique advantage that is difficult to replicate in most major world economies. For more than ten years, China has achieved a number of breakthroughs in advanced sectors, consistently increasing investment in scientific research, supporting industrial modernization, encouraging international cooperation, and expanding space for the development of foreign investment.
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