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Global companies intensify R&D efforts in China

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By Luo Shanshan, People’s Daily

Recent data from China’s Ministry of Commerce highlights a significant shift: foreign companies are significantly increasing their research and development (R&D) activities within China.

Two key figures underscore this trend: First-quarter foreign direct investment (FDI) in China’s high-tech industries surged by 30.7 percent year-on-year; In 2025, FDI in China’s scientific research and technical services sector accounted for nearly one-fifth of the national total, marking its seventh consecutive year of growth.

Market developments further underscore the trend. 

Earlier this year, multinational pharmaceutical company AstraZeneca announced plans to invest more than 100 billion yuan ($14.72 billion) in China before 2030, further expanding its footprint in pharmaceutical production and R&D. 

In March, Siemens held its first Real Meets Digital summit in Beijing, launching 26 products developed locally in China. 

At the China Development Forum 2026, the chairman of Louis Dreyfus Company revealed plans to build a second R&D center in China. 

From official data to corporate actions, the momentum behind “R&D in China” is becoming increasingly evident.

More importantly, foreign-funded R&D centers in China once mainly served local market needs. Today, however, more and more cutting-edge technologies and core iterations of global product lines are being developed in China and then introduced to international markets. 

This reflects a broader shift: multinational companies’ manufacturing bases in China are evolving into sources of innovation, while their R&D centers are upgrading from localized support facilities into key nodes in global innovation networks.

So why is this shift from “made in China” to “created in China” taking place?

One important reason is China’s comprehensive industrial system, which provides strong support for turning innovation into reality. 

Research and development cannot exist in isolation; it requires an entire chain linking laboratories with commercialization. China possesses the world’s most complete industrial system and the broadest range of industrial supporting facilities. This means innovators can find partners across every stage of the process, from design and prototyping to testing and mass production.

At the China International Import Expo last year, for example, French multinational corporation Schneider Electric showcased its dual “power + cooling” innovation solution, which was designed and developed by its China-based team and validated and delivered through collaboration with local supply chains. 

The highly efficient coordination among R&D, pilot testing and mass production — the ability to move swiftly from research to manufacturing — is a unique strength that many other economies struggle to match.

Another major advantage lies in China’s vast and diverse application scenarios, which provide fertile ground for innovation. 

China’s enormous population, combined with steadily rising incomes, has generated strong and diversified demands, fostering vibrant consumption scenarios in digitalization, green development and intelligent technologies. Massive demands in areas such as healthcare, intelligent manufacturing and smart cities have created natural “testing grounds” and “training arenas” for new technologies.

“Many things happen first in China,” said Roland Busch, president and CEO of Siemens AG. “When we bring innovations to market, China is often the first place where they are launched and implemented.” Robust market demand, in turn, feeds back into the R&D process, making the journey from concept to commercial product faster and more efficient.

A continuously improving policy environment has also strengthened confidence in innovation investment. Policy stability is a critical factor for multinational companies making long-term strategic decisions, particularly because R&D investment requires a high degree of continuity, stability and predictability.

Since the beginning of this year, China has further increased policy support for foreign-funded R&D centers. For example, a new version of the Catalogue of Encouraged Industries for Foreign Investment, which took effect on February 1, added more encouraged categories in areas such as innovative drug development and digital creative technology research. 

In February, China’s Ministry of Finance, Ministry of Commerce and other departments jointly issued a notice continuing tax exemptions on imported scientific research equipment and supplies for foreign-funded R&D centers, including exemptions from import tariffs, import-related value-added tax and consumption tax.

Strong policy support combined with attentive government services has further reinforced the confidence of foreign investors to keep returning and expanding their investment in China.

The intensifying R&D efforts by foreign companies in China reflects deeper changes in the drivers attracting foreign investment to China and highlights the growing vitality of the country’s innovation ecosystem. 

Looking ahead, China will continue leveraging its combined strengths in industry, market and policy support to attract more multinational companies to locate their R&D operations in China and share in the opportunities created by the country’s innovation-driven development.

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China’s high-quality foreign trade reflects economic resilience

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By He Yin, People’s Daily

China’s recently released foreign trade data for the first four months of 2026 shows robust growth, with total goods imports and exports rising 14.9 percent year-on-year. This continues the steady, positive momentum observed in the first quarter.

The stronger-than-expected performance has drawn broad international attention. Overseas media have frequently described China’s trade as exhibiting “strong momentum,” “sustained export dynamism,” and “renewed economic resilience.” These figures offer the world a clearer view of the solid foundations supporting China’s steady economic progress and long-term development confidence. 

As a vital window into China’s economic vitality, foreign trade vividly demonstrates how the country’s development continues to benefit the world. Despite external headwinds and rising uncertainties, China’s foreign trade has delivered an impressive performance marked by expanding size, improving structure and numerous highlights.

In the first four months of the year, China’s total goods trade reached 16.23 trillion yuan ($2.39 trillion), including 4.38 trillion yuan in April alone, highlighting both strong growth momentum and steady development.

During this period, the advantages of China’s supersized domestic market continued to emerge, driving imports to maintain double-digit growth. At the same time, accelerated upgrading in the manufacturing sector provided solid support for export growth. 

The vitality of foreign trade business entities continued to increase. Private enterprises further consolidated their role as the backbone in stabilizing foreign trade, and foreign-invested companies showed steadily improving willingness to participate in the Chinese market.

A foreign media outlet noted that China’s foreign trade has made a strong start this year and laid a solid economic and trade foundation at the beginning of the 15th Five-Year Plan period (2026-2030).

New growth drivers are continuing to gather strength, accelerating the shift in China’s foreign trade from expansion in size to improvement in quality.

In the first four months of the year, high-tech and high-value-added electromechanical products accounted for 63.5 percent of China’s total exports. Exports of electric vehicles, lithium batteries and wind turbine units all surged by more than 40 percent, while industrial robot exports rose by 30 percent. Chinese manufacturing is rapidly moving toward higher-end, greener and smarter development, steadily climbing up the global value chain.

At the same time, China’s imports of electromechanical products rose by 23.6 percent. Among them, imports of automatic data-processing equipment and components, as well as integrated circuits, increased by 55.9 percent and 43.5 percent respectively, indicating that global innovation resources are accelerating their concentration in China.

Supported by continuously improving market procurement trade pilot programs and cross-border e-commerce comprehensive pilot zones that now cover nearly the entire country, new forms of trade such as offshore trade and bonded maintenance services are flourishing and gaining momentum. 

New industries, technologies and business models are reshaping the landscape of China’s foreign trade growth while injecting strong momentum into the stable upgrading of global industrial and supply chains.

Amid a challenging global economic recovery, openness, cooperation, and mutual benefit remain crucial. China continues to pursue a diversified market strategy: deepening engagement with traditional markets while vigorously expanding into emerging ones, steadily broadening its circle of economic and trade partners. From January to April, trade with ASEAN and Latin America grew over 15%, while exchanges with the EU and South Korea remained stable and improving.

The benefits of China’s zero-tariff measures for 53 African countries with diplomatic ties are also becoming increasingly evident. Bilateral trade exceeded 800 billion yuan for the first time during the same period. Distinctive African products are enriching China’s consumer market, while high-quality Chinese products are supporting Africa’s development and modernization efforts.

As “exporting to China” and “shopping in China” become increasingly integrated, China continues to send a clear message to the world through its unwavering commitment to high-level opening up, a message of mutually beneficial cooperation and shared prosperity.

Building China into a strong trading nation, improving the quality and efficiency of foreign trade, and promoting balanced development of imports and exports are essential components of China’s high-quality development strategy, as well as an important manifestation of its responsibility in building an open world economy.

China has ranked first globally in total goods trade for nine consecutive years, while maintaining a stable share of the international market. 

It keeps refining foreign-related economic and trade institutional rules, expands pilot free trade zones step by step and presses ahead with institutional opening up. The country also earnestly delivers on free trade agreements and further strengthens regional economic and trade ties. 

Additionally, it takes part in global trade governance and facilitates the improvement of multilateral economic and trade regulations. Through all these tangible efforts, China has taken concrete actions to safeguard the multilateral trading system and contribute to the stable development of global trade.

The “quality” of China’s foreign trade reflects the “resilience” of the Chinese economy and underscores the steady start to the 15th Five-Year Plan period. A China committed to high-quality development will continue to serve as a reliable and dependable stabilizing force in a turbulent world, constantly creating opportunities, delivering hope and generating momentum for global development.

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Forging a new chapter in the China-LAC community with shared future

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By He Yin, People’s Daily

In May 2025, the Fourth Ministerial Meeting of the China-CELAC (Community of Latin American and Caribbean States) Forum was held in Beijing. 

Chinese President Xi Jinping attended the opening ceremony and delivered a keynote speech, announcing the launch of five major programs ranging from solidarity, development, civilization to peace and people-to-people connectivity. The initiatives outlined a clear blueprint for the two sides to pursue modernization together.

Over the past year, guided by the principles of equality, mutual benefit and win-win cooperation, China and Latin American and Caribbean (LAC) countries have strengthened coordination and collaboration, steadily advancing the implementation of the five programs and delivering tangible benefits to people on both sides. In doing so, they have continued writing a new chapter in building the China-LAC community with a shared future.

China and LAC countries have stood together in solidarity, deepening political mutual trust.

In recent years, under the strategic guidance of head-of-state diplomacy, China-LAC relations have entered a new stage characterized by equality, mutual benefit, innovation, openness and benefits for the people. High-level exchanges between the two sides have remained close, and both sides have consistently supported each other on issues concerning their respective core interests and major concerns.

Last December, China released its third policy paper on LAC, proposing concrete measures to advance the implementation of the five major programs and providing clearer direction and pathways for building the China-LAC community with a shared future. In March this year, Xi sent a congratulatory message to the 10th Summit of the CELAC, which resonated widely across the region.

The two sides have also institutionalized exchanges on governance and modernization experience, advancing together along the path toward modernization. LAC countries have actively responded to the China-proposed Global Governance Initiative, with five countries in the region joining the International Organization for Mediation, demonstrating through concrete action their commitment to defending multilateralism.

China and LAC countries have also continued enhancing practical cooperation for mutual benefit and win-win outcomes.

The two sides have strengthened the alignment of development strategies and deepened cooperation in trade, infrastructure, energy, agriculture and other sectors, further tightening bonds of shared interests.

According to statistics from China’s General Administration of Customs, trade between China and LAC countries reached a record high of $549 billion in 2025. With highly complementary economic structures and resource advantages, the two sides are jointly fostering a major market of nearly 2 billion people, empowering each other’s economic growth while creating new opportunities for global economic recovery.

A report by the United Nations Economic Commission for Latin America and the Caribbean noted that China-LAC economic and trade cooperation has become a stabilizing force for diversified regional economic development, helping LAC countries diversify economic partnerships and strengthen long-term development resilience.

Openness and inclusiveness have infused vitality into people-to-people and cultural exchanges between the two sides.

Platforms such as the Dialogue Between the Civilizations of China and the LAC, think tank forums, and development forums have been held successively, promoting mutual learning among civilizations and exchanges of ideas. Chinese art troupes, cultural exhibitions and film and television exchange activities have toured many LAC countries, sparking growing enthusiasm for Chinese culture across the region. Meanwhile, increasing numbers of tourists from LAC countries are traveling to China, gaining firsthand understanding of the country and developing deeper appreciation for it.

The Chinese navy hospital ship Silk Road Ark has traveled to multiple LAC countries to provide humanitarian medical services, while the Luban Workshop in Nicaragua has officially begun operations, helping train local young skilled workers.

As the civilization and people-to-people connectivity programs continue to move forward, the benefits of China-LAC cooperation are increasingly being reflected in improved livelihoods and closer ties between the peoples of both sides.

China-LAC cooperation is an important part of South-South cooperation. It aligns with the trend of the times and serves the shared long-term interests of both sides.

Under the Peace program, China and LAC countries have strengthened cooperation in international security, regional stability and public security. China and Brazil issued a joint statement on the Ukraine crisis, while several countries in the region expressed support for and participation in the five-point initiative of China and Pakistan for restoring peace and stability in the Gulf and Middle East region, contributing wisdom and strength to global peace and stability.

Closer solidarity and coordination between China and LAC countries help safeguard international fairness and justice, promote global development and prosperity, and generate powerful energy for building a world of peace, security, prosperity and progress.

China remains a steadfast friend and partner to LAC countries. By deepening cooperation and advancing the China-LAC community with a shared future, both sides are expected to deliver greater benefits to their peoples while contributing to peace, stability and development worldwide.

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China and Russia commit to deepening and elevating bilateral relations

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By He Yin, People’s Daily

Russian President Vladimir Putin arrived in Beijing on May 19, 2026, for a state visit to China. At the invitation of Chinese President Xi Jinping, Putin is visiting China from May 19 to 20. This is Putin’s 25th visit to China and the first face-to-face meeting between the two heads of state this year.

The international community widely anticipates that, under the strategic guidance of the two presidents, China-Russia relations will continue advancing along the right path and make positive contributions to safeguarding global strategic stability and international fairness and justice.

Over the years, head-of-state diplomacy has always been the greatest strength and the fundamental guarantee of the high-level development of bilateral relations.

Since 2013, the two heads of state have met with each other more than 40 times on various occasions. In 2014, the two leaders jointly signed a statement marking a new stage in the China-Russia comprehensive strategic partnership of coordination. In 2019, they agreed to elevate bilateral ties to a comprehensive strategic partnership of coordination for a new era. 

In 2021, the two sides officially announced the extension of the China-Russia Treaty of Good-Neighborliness and Friendly Cooperation while enriching its contemporary significance.

Last year, the two presidents signed the Joint Statement Between the People’s Republic of China and the Russian Federation on Further Deepening the China-Russia Comprehensive Strategic Partnership of Coordination for the New Era.

Under the joint planning and guidance of the two heads of state, China-Russia relations have grown increasingly confident, stable and resilient.

The relationship has set an example of a new model of major-country relations, delivering tangible benefits to both countries and their peoples while contributing significantly to global strategic stability and improvements in global governance.

During this visit, the two heads of state exchanged views on bilateral relations, cooperation across various sectors, and international and regional issues of common concern. The meeting has elevated China-Russia relations in the new era to new heights and injected positive energy into world peace and development.

Ever-lasting good-neighborliness and friendship, comprehensive strategic coordination and mutually-beneficial cooperation are the defining features of China-Russia relations.

This year marks the 30th anniversary of the establishment of the China-Russia strategic partnership of coordination, the 25th anniversary of the signing of the China-Russia Treaty of Good-Neighborliness and Friendly Cooperation, and the launch of the China-Russia Years of Education.

Seizing this important historic opportunity in bilateral relations, both sides will further strengthen political mutual trust, deepen comprehensive cooperation across all fields, and continue consolidating the social and public foundation for everlasting friendship.

In recent years, thanks to the joint efforts from both sides, cooperation across various sectors has continued to deepen and deliver solid outcomes. Cooperation in key areas has flourished, sub-regional cooperation has remained vibrant, and collaboration in emerging sectors has expanded comprehensively, producing fruitful results.

In 2025, bilateral trade between China and Russia reached $227.9 billion, surpassing the $200 billion mark for the third consecutive year. China has remained Russia’s largest trading partner for 16 consecutive years. In the first four months of this year, bilateral trade totaled $85.241 billion, up 19.7 percent year on year.

Holding thematic years in each other’s countries has become a fine tradition of the people-to-people and cultural exchanges between China and Russia, and a feature and highlight of bilateral relations over their course of development. The China-Russia Years of Education launched this year marks the 10th national-level thematic year between the two countries and is expected to inject fresh momentum into deepening mutual understanding between the two peoples while supporting the development and revitalization of both countries.

Against the backdrop of an increasingly turbulent and changing international landscape, the stability and certainty embodied in China-Russia relations are particularly valuable.

They not only provide a solid foundation for the development and revitalization of both countries, but also inject precious stability and positive energy into maintaining global strategic stability and improving global governance.

For many years, as responsible major countries and permanent members of the United Nations Security Council, China and Russia have maintained close coordination and cooperation within multilateral frameworks such as the United Nations, the Shanghai Cooperation Organization, BRICS and the Group of Twenty.

Together, the two countries have contributed to safeguarding the central role of the United Nations in international affairs, explored a path toward building a universally beneficial, inclusive economic globalization, and injected momentum into advancing an equal and orderly multipolar world.

Last September, Xi proposed the Global Governance Initiative at the “Shanghai Cooperation Organization Plus” Meeting. During the meeting, Putin spoke positively of the initiative and expressed Russia’s support.

Since this year, the international situation has become increasingly volatile. Closer and more robust strategic coordination between China and Russia, alongside their more proactive major-country responsibilities, will help make the international order more just and equitable.

Today, China-Russia relations are at their best in history. Standing at a new historical starting point, China is ready to work with Russia to earnestly implement the important consensus reached by the two heads of state, continue deepening and elevating bilateral relations, and make greater contributions to promoting the development and revitalization of both countries as well as safeguarding international fairness and justice.

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