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China Observer > Blog > China > China’s policy stability fosters innovation and a shared future
China

China’s policy stability fosters innovation and a shared future

March 16, 2026 6 Min Read
Updated 16/03/26 at 2:01 PM
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6 Min Read
Photo shows a workshop of a plant of Schneider Electric in Wuxi, east China's Jiangsu province. (Photo provided by Schneider Electric)

By He Yin, People’s Daily

During recent China’s “two sessions,” the annual meetings of the country’s top legislature, the National People’s Congress, and top political advisory body, the Chinese People’s Political Consultative Conference, how the country will elevate the quality and level of trade and investment cooperation as it advances high-level opening up has become a major focus of international attention.

A foreign merchant buys hot glue guns at the Yiwu International Trade Market in Yiwu, east China’s Zhejiang province. (Photo/Shi Bufa)

In an increasingly turbulent global landscape marked by economic uncertainty, China’s capacity for long-term stability makes it an increasingly vital destination for international business.

This appeal is reflected in the numbers: more than 70,000 foreign-invested enterprises were established across China in 2025, a year-on-year increase of 19.1 percent. This trend underscores a clear and consistent reality: China remains, and will continue to be, an attractive, secure, and promising market for foreign investment.

Partnering with China means embracing opportunity. Believing in China reflects optimism about the future. And investing in China is, ultimately, an investment in tomorrow.

Vehicles are assembled at the general assembly workshop of a factory of FAW-Volkswagen, a joint venture established between China FAW Group Co., Ltd. and German carmaker Volkswagen, in Qingdao, east China’s Shandong province. (Photo/Liang Xiaopeng)

Stability breeds long-term confidence. France’s Schneider Electric has been present in the Chinese market for nearly four decades. From an initial team of just 10 employees, the company has grown to establish five R&D centers, an AI innovation laboratory, and 30 factories and logistics centers across the country. It is China’s developmental stability that has enabled such long-term planning and sustained growth.

Schneider’s experience exemplifies a shared commitment to long-termism. China’s own consistent, long-range development approach increasingly shapes the strategic outlook of foreign enterprises operating there. By aligning with China’s five-year plans, monitoring policy signals, and assessing industrial prospects, many foreign companies are translating the conviction that “investing in China is investing in the future” into concrete action.

Stability also nurtures fertile ground for innovation. China is firmly advancing scientific and technological innovation, while new quality productive forces are taking shape at a faster pace. As a result, more and more foreign enterprises regard China as a “gym” where they can strengthen their innovative capacity and competitiveness.

Germany’s Volkswagen has accompanied China’s automotive industry through decades of growth. Today, the company works closely with Chinese partners in mutual learning, joint innovation, and collaborative research. The combination of China’s speed and German experience, as well as Chinese wisdom and German craftsmanship, is injecting new momentum into the development of the new-energy vehicles industry.

Stability carries the aspirations of entrepreneurs. China’s expanding opening up continues to attract entrepreneurs from around the world. Statistics show that in Yiwu, east China’s Zhejiang province, more than 30,000 foreign merchants are active every day, and the number of registered foreign-invested market entities has exceeded 11,000. Yiwu, known as the “world’s supermarket,” has also become a vibrant international community marked by diversity and integration.

Danish entrepreneur Simon Lichtenberg has run a business in Shanghai for more than 30 years. He has also actively participated in consultations organized by grassroots legislative outreach offices, offering suggestions on the draft revision of the Company Law.

His story illustrates how a safe and friendly environment, together with an open, inclusive and harmonious social and cultural atmosphere, further strengthens foreign investors’ confidence in building their future in China.

The growing scale of investment and the upgrading of cooperation models reflect foreign investors’ deepening understanding of the opportunities China offers. From recognizing the enormous potential of China’s market to appreciating the institutional strengths behind its unique appeal, many in the international business community increasingly see China as an irreplaceable partner.

The draft outline of the 15th Five-Year Plan proposes to coordinate foreign investment attraction and outbound investment to cultivate new strengths in international trade and two-way investment cooperation, make greater efforts to attract and utilize foreign investment, and promote international industrial and investment cooperation. The stability of these policy directions, rooted in practical experience, will continue to unleash new momentum for future development.

Together, China and foreign enterprises have written a story of mutual benefit and win-win cooperation, forming an important chapter in the history of economic globalization.

As the 15th Five-Year Plan period (2026-2030) begins, China will remain committed to opening up, cooperation, and win-win outcomes. By steadily expanding institutional opening up, China will create an even more enabling environment and broader space for foreign enterprises, while continuing to provide new opportunities for the world through its own development.

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admin March 16, 2026
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