China
Global companies intensify R&D efforts in China
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.
China
China’s industrial “smart brains” gain global momentum
By Wang Weijian, People’s Daily
At Suzhou Yuankong Electronics Co., Ltd.(Spes Tech) in east China’s Jiangsu province, engineers swiftly gathered around monitors when a sudden data fluctuation disrupted stable readings.
Within seconds, CPU utilization in a fully loaded industrial control computer dropped below 90 percent, signaling a possible cooling issue during pre-production validation.
For the company, such rigorous testing has become routine. Specializing in the research, development and manufacturing of industrial control computers, Spes Tech provides serves to clients across multiple countries. In the first quarter of this year, its sales rose by more than 50 percent year on year.
Robust growth like this is driven by the accelerating push for intelligent upgrading, digital transformation and networked connectivity across a wide range of industries.
At Spes Tech, industrial control computers come in many forms, from palm-sized embedded devices to rack-mounted systems as large as printers, each designed for different industrial scenarios.
“Industrial control computers are essentially the ‘brains’ of modern industrial production,” said Bao Yanfeng, from the strategic resources center of CVTE, the parent company of Spes Tech. “Their applications are extremely broad.”
Unlike consumer electronics, industrial control systems must operate reliably under harsh conditions. Wang Qiang, head of Spes Tech’s laboratory operations, explained that a high-quality industrial control computer must deliver not only strong computing power, but also outstanding operational stability.
The machines are expected to start reliably in temperatures as low as minus 40 degrees Celsius, continue operating in heat up to 70 degrees Celsius, and resist damage from dust, high humidity and strong electromagnetic interference, Wang added.
“Every step ahead in research and development and every improvement in product stability gives us greater confidence to expand into the market,” Bao said.
Inside an environmental testing facility, rows of compact chambers serve as “trial grounds” before products enter mass production. Some simulate heat and humidity higher than those in tropical rainforests, while others simulate the frigid cold of polar extremes.
“Every product undergoes these stress tests before entering factory deployment,” Wang notes. This commitment to reliability proved decisive when the company won a major contract requiring continuous operation under extreme heat for dozens of hours.
Bao said the company’s development has also benefited from China’s increasingly complete industrial and supply chain ecosystem.
One of Spes Tech’s partners is Bozhon, a provider of high-end intelligent manufacturing solutions located in Suzhou’s Wujiang district, just over half an hour’s drive from Spes Tech. The proximity between industrial demand and technological supply has strengthened collaboration between the two companies.
As one of China’s major hubs for the industrial control computer sector, Suzhou has built a comprehensive industrial chain covering chips and core industrial software to system integration and end-user practical applications.
“When upstream and downstream companies are clustered nearby, supply chain coordination and technological collaboration become much more efficient. That is one of the biggest advantages for industrial development,” said Hu Jing, director of the electronic information industry division of the Suzhou municipal industry and information technology bureau.
According to Hu, Suzhou is home to more than 13,000 industrial enterprises above designated size, who earn annual revenue of 20 million yuan ($2.94 million) and above from the main business.
The city invests 2 billion yuan in fiscal funding annually to support intelligent upgrading, digital transformation and industrial networking. More than 30,000 such projects have been implemented, creating abundant application scenarios for industrial control systems across industries including consumer electronics, automobiles, new energy, high-end equipment manufacturing and biomedicine.
Today, Spes Tech’s production orders have already been booked several months in advance.
“We will continue refining technical details, overcome more industry bottlenecks and develop more reliable and advanced products, so that Chinese industrial control computers can go further globally,” Bao said.
The rise of Chinese industrial control computers is no coincidence, but part of the broader transformation of China’s manufacturing sector. In the first quarter of this year, the added value of China’s high-tech manufacturing industries above designated size grew by 12.5 percent year on year, 3.1 percentage points faster from a year ago.
China’s 15th Five-Year Plan(2026-2030) also calls for comprehensive efforts to empower all industries with digital and intelligent technologies. As the country’s manufacturing sector continues to upgrade, market demand for advanced industrial equipment is expected to expand even further.
China
Smart vessels revolutionize port operations across China
By Han Xin, People’s Daily
In February 2026, the autonomous container ship “Zhifei” docked with pinpoint precision at the automated terminal of Qingdao Port in Qingdao, east China’s Shandong province. Without pilot boats or tug assistance, the ship’s autonomous navigation system guided it seamlessly to berth.
Upon arrival, the terminal’s vacuum-assisted mooring system secured the vessel with more than 10 suction cups in just 30 seconds. Remote-operated quay cranes then coordinated with automated guided vehicles for efficient cargo handling.
The seamless coordination between the intelligent ship and the smart port offers a glimpse into the development of intelligent shipping.
By 2030, China is expected to elevate its intelligent shipping development to an internationally advanced level, according to a plan recently released outlining the general requirements, key tasks, and support measures for intelligent shipping development during the 15th Five-Year Plan period (2026-2030).
“Intelligent shipping is a waterway transport system centered on autonomous vessels, supported by digital infrastructure, and coordinated operational control,” said an official from the Maritime Safety Administration under China’s Ministry of Transport (MOT). Years of development have brought a series of breakthroughs in China’s intelligent shipping.
A new generation of smart vessels is emerging. Domestically produced intelligent ships with autonomous navigation capabilities, including the “Zhifei” and the “Zhu Hai Yun” smart unmanned scientific research mother ship, have hit the water, with some already in regular commercial operation. Decision-support systems are now applied at scale on bulk cargo carriers, oil tankers, and container ships.
Infrastructure has become smarter. Currently, there are 60 automated ports in China, and the national electronic navigational charts coverage now exceeds 10,000 kilometers of waterways. Meanwhile, the application of blockchain technology in port electronic cargo release and maritime electronic bills of lading is continuously expanding.
The framework for smart shipping has been steadily strengthened. China has issued a five-year plan for green and smart ship technology standards, introduced interim rules for the technical requirements and inspection of autonomous ship navigation trials, and taken the lead in drafting key chapters of the International Maritime Organization’s (IMO) Maritime Autonomous Surface Ships Code. The country has become a key player in setting global standards for intelligent shipping.
“A new generation of technologies, represented by artificial intelligence (AI) and big data, are shifting shipping from experience-based to data-driven operations. Within a decade, intelligent shipping will reshape global industry competitiveness,” said Zhang Baochen, vice chairman of the China Institute of Navigation.
Along the Yangtze River, greenery stretches extend for miles. Recently, the world’s largest and China’s first 10,000-tonne pure electric intelligent vessel, the Ningyuan Diankun, began trial voyages in Jiujiang, east China’s Jiangxi province.
The vessel is integrated with an intelligent platform and smart engine-room system, and is equipped with core autonomous navigation technologies for open waters. It features a full suite of smart functions, including all-weather visual perception and autonomous navigation. The vessel is powered by 10 containerized battery packs and is expected to reduce carbon dioxide emissions by nearly 1,500 tonnes annually after being put into operation.
“Although China’s shipping industry leads the world in scale, it continues to face a range of structural and systemic challenges, including persistently high operating costs and mounting pressure for green transition. Technological innovation is urgently needed to turn these challenges into new growth momentum,” said an official from the China Maritime Safety Administration.
The official added that the plan seeks to empower the shipping industry chain through innovative technologies, guiding the sector from scale-driven expansion toward quality-oriented development.
With a focus on smart vessels, the plan calls for intensified research into key areas such as human-machine collaboration and multi-agent coordination. As complete smart ship technologies continue to advance, future vessels are expected to become increasingly intelligent, capable of operating across far more complex and expansive maritime environments.
The plan also calls for breakthroughs in smart port and waterway technologies, as well as integrated systems for autonomous navigation and remote-controlled ship operations. In practical terms, this points to a future where more vessels will be able to dock autonomously at ports.
“The implementation of the plan will promote the deep integration of intelligent technologies across all elements and processes of shipping. This will not only drive innovation, empowerment, and transformation within the shipping industry itself, but also spur upgrading across upstream and downstream industrial chains, cultivating new growth drivers for China’s smart economy,” said Geng Xiongfei, director of the Intelligent Shipping Technology Research Center at the China Waterborne Transport Research Institute of the MOT.
Scenario-driven development is central to advancing smart shipping. According to the plan, China aims to establish at least three smart shipping pilot zones, launch more than five pilot smart shipping routes, develop over 10 replicable application scenarios, and put more than 100 intelligent vessels into operation over the next two years.
China
Global surge of Chinese running shoes mirrors upgrades of China’s service sector
By Zhang Feiran, Shen Jiaping, People’s Daily Online
Chinese running shoes are gaining global prominence as international influencers showcase their performance and affordability across social media platforms.
This trend is amplified by China’s advanced cross-border e-commerce and logistics infrastructure, which delivers unprecedented convenience to overseas consumers through three key advantages: rapid delivery, diversified purchasing channels, and continuously enhanced shopping experiences.
Cross-border e-commerce has emerged as a pivotal driver of China’s international competitiveness, with 2025 trade volume reaching 2.75 trillion yuan ($400 billion). As a critical business-to-business service, cross-border logistics enables Chinese companies to reduce overseas delivery times and operational costs while improving consumer satisfaction — creating essential support for global brand expansion.
Last year’s Chinese government work report called for promoting the development of cross-border e-commerce, improving international delivery and logistics systems, and strengthening overseas warehouse construction.
At the national conference on the service sector held in April this year, authorities emphasized the need to pursue both capacity expansion and quality improvement while balancing development with regulation to promote high-quality and efficient growth of the service industry.
Against this backdrop, how can cross-border logistics build on current momentum and achieve higher-quality development?
One key direction is faster transportation.
China’s State Council recently issued guidelines on promoting the expansion and upgrading of the service sector, explicitly calling for the vigorous development of international maritime and air transport services.
Data show that in the first quarter, China’s international cargo and mail transportation volume exceeded 1.1 million tons, up 17.6 percent year on year. Demand has been particularly strong for high-value-added goods such as cross-border e-commerce products, high-end manufacturing equipment and biopharmaceutical products.
Meanwhile, customs clearance efficiency keeps improving. A “9610” cross-border e-commerce direct mail export model is unlocking greater potential, allowing more small and medium-sized sellers to get fast clearance for small-sized and high-frequency parcels.
Another focus is improving overseas storage and distribution capabilities.
Guidelines jointly issued by six departments, including China’s Ministry of Commerce, call for stronger support for overseas warehouses and the improvement of intelligent overseas logistics platforms.
To date, Chinese companies have established more than 2,500 overseas warehouses worldwide, covering a total area exceeding 30 million square meters. The United States and Europe alone account for more than 70 percent of the total.
Returns are also becoming more convenient.
Since April 1, China’s General Administration of Customs has rolled out a nationwide cross-regional return system for cross-border e-commerce retail exports. Under the new policy, goods returned from overseas no longer have to re-enter China through the original customs office from which they were exported. Instead, companies can choose any customs port nationwide to handle return procedures. The move is expected to help address longstanding industry challenges surrounding costly, time-consuming and difficult return processing.
This growth creates significant talent demand. China’s cross-border e-commerce sector faces a projected 4 million professional shortage by 2025, with data analysts in supply chain roles commanding premium salaries of 250,000-500,000 yuan annually. The global embrace of Chinese sportswear transcends product quality — it demonstrates how “China Services” infrastructure upgrades provide competitive advantages in international markets, offering new testament to China’s industrial evolution.
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