China Becomes Key Word in Multinational Firms' Earning Calls

Investing in China for win-win future ‘a prevailing consensus:’ FM

By Chu Daye

Jul 24, 2025 10:18 PM

A view of the core Lujiazui commercial area in Pudong New District, Shanghai on July 15, 2025 Photo: VCG

Multiple foreign companies mentioned "China" and "Chinese market" during their earning calls and financial reports on Wednesday and Thursday, a phenomenon a Chinese expert described as demonstrating the importance of the stable Chinese market to multinational firms under the current complex economic landscape.

Foreign companies are also expanding their presence in the world's second-largest economy with more plants and production lines entering operation during the first half, highlighting their commitment to the Chinese market.

US-based electric carmaker Tesla said in its latest financial report on Wednesday (US time) that its Shanghai Gigafactory remains its main export hub, which supports market expansion in the Asia-Pacific, and the carmaker continues to prepare for the broader release of Full Self-Driving in China, pending approvals.

Coca-Cola, the US beverage giant, highlighted its resilient performance in China while releasing its second-quarter results. The company said that in China, despite a cautious consumer environment, stronger performance from Coca-Cola and in the eating and drinking channel drove overall volume growth. The company also noted that its joint venture with Chinese food company COFCO in Southwest China's Guizhou Province commissioned a new canning production line during the quarter, adding about 50,000 tons of annual capacity.

Switzerland-based food giant Nestlé noted in its half-year results published on Thursday that the company is taking "decisive measures to strengthen business in greater China," even as it experienced a decline in sales during the second quarter.

German chemical firm Evonik announced on July 9 the opening of its largest center for medical device applications in Shanghai to serve the entire Asian market while Wacker Chemie AG commissioned new plants in Zhangjiagang, East China's Jiangsu Province for specialty silicones in May.

Sun Chuanwang, a professor at Xiamen University, told the Global Times on Thursday that the fact that foreign companies are mentioning China in their financial reports and expanding their footprints in China underscored the importance of China's vast market, as unilateralism and protectionism wreck global trade and investment while China provides stable, transparent, and predictable institutional guarantees for foreign investment.

"In the first half of the year, a great number of foreign-invested enterprises continued to increase their investments in China, particularly in high-tech industries, which have seen sustained growth," Sun said. "The benefits of institutional openness are continuously being released through measures such as the ongoing optimization of the business environment and the continuous reduction of the negative list for foreign investment access."

A total of 30,014 new foreign-invested enterprises were established in the Chinese mainland in the first half of 2025, a year-on-year rise of 11.7 percent, according to the Ministry of Commerce on July 19.

Notably, foreign investment in the e-commerce services sector jumped by 127.1 percent, while investment in the aerospace equipment manufacturing sector increased by 36.2 percent.

Sun noted that the empowering effect of technological iteration and upgrading is becoming increasingly prominent in the Chinese market.

The complete industrial chains and vast application scenarios formed in emerging fields such as new energy and the digital economy in China have created a strong attraction for global technological collaborative investment, the expert noted.

At a regular press conference on Wednesday, Chinese Foreign Ministry spokesperson Guo Jiakun said that investing in China for a win-win future has become a prevailing consensus among global investors, noting that foreign-funded companies have cast a vote of confidence in China's economic prospects with their concrete actions.

We welcome companies from all countries, including the US, to participate in the Chinese modernization drive and strive for greater progress while integrating themselves into high-quality development, according to Guo.

As China posted a better-than-expected GDP growth of 5.3 percent for the first half, a growing number of foreign financial institutions have revised up their outlook for China.

In a statement sent to the Global Times on Wednesday, economists at Deutsche Bank said the Chinese economy passed a stress test in the first half of 2025, with supply-side reforms likely to become a main theme of China's economic policy in the second half.

Sun noted that the Chinese government recently rolled out new steps to encourage foreign investment, showing its sincerity and determination in advancing high-standard opening-up. 

"Next, China will continue to enhance its appeal to foreign investment, further stabilizing foreign investors' expectations with its hyper-size market, comprehensive industrial system, and abundant human resources."