GUANGZHOU: The American Chamber of Commerce in South China (AmCham South China) released its 2025 Special Report on the State of Business in South China on Wednesday, highlighting that the world’s second-largest economy remains an attractive investment destination.
This year’s report, the 21st in the series, provides a comprehensive and quantitative analysis of the business community, offering valuable insights into development trends in South China.
A total of 316 companies participated in the latest survey in 2024. The report highlighted China’s leading position in global investment priorities, with 58% of foreign companies surveyed ranking it among their top three investment priorities.
Looking ahead to 2025, 76% of the companies intend to reinvest in China, with a notable 74% of the American companies planning reinvestments, up 11 percentage points year-on-year.
The surveyed companies are mainly from the United States, China, and the European Union. More than half of them are wholly foreign-owned, and over 30% American-invested.
The proportion of companies that generated over 60% of their global revenue from China increased by five percentage points, reaching a total of 31%, said the report.
ExxonMobil China is a testament to the increasing confidence foreign investors have in the country, with the company recently launching trial production at a new petrochemical project in Guangdong’s Huizhou.
It will open a cutting-edge technology centre in the province to bolster its research and development capabilities to support global customers.
“China is a key part of our growth strategy, and Guangdong is an outstanding partner.
“We strongly value its professional and efficient government, well-developed infrastructure and business-friendly environment, and skilled workforce,” said ExxonMobil China chairman Jean-Marc Taton.
Growth potential of the Chinese market continues to be the primary driver for increasing investments in China or shifting investments from other markets to China, followed by the industrial cluster effect and preferential policies, according to Harley Seyedin, chairman and president of AmCham South China.
In 2024, China’s gross domestic product reached a record 134.91 trillion yuan, marking a 5% year-on-year increase.
This robust economic performance continues to attract global investors.
Additionally, the ongoing policy incentives from China have also boosted the confidence of foreign enterprises.
In February, China issued an action plan to stabilise foreign investment, with efforts to expand opening-up in sectors like telecommunication, biotechnology and medical services, and offering comprehensive services for foreign-invested projects.
It encourages foreign investment in the high-tech and animal husbandry industries, and in services such as health care and finance.
The plan also lifts restrictions on loans for foreign firms and ensures equal participation in government procurement for both foreign and domestic companies. — Xinhua
