Top Growing Industries In China: Opportunities For Foreign Companies To Invest In

Share This Post

Table of Contents

In the past year, the global economy has been influenced by the coronavirus.

We face ups and downs even though everyone is trying their best to maintain their usual life.

Fortunately, situation becomes better, and more and more people/companies seize the opportunities to expand their business while others are surviving.

What industry are you interested in expanding your business to when there’s a chance? 

Continue to read to know more about the top growing industries in China!

Statistics from the Ministry of Commerce show that from January to August 2020, China’s foreign non-financial direct investment reached 48045 billion yuan, down 2.6 percent year on year.

In August, the actual use of foreign capital nationwide reached 84.13 billion yuan, up 18.7 percent year on year, the fifth month in a row that the amount of foreign capital absorbed in a single month increased.

At a time when the global direct transnational investment is still in a severe downturn, China’s actual use of foreign investment has increased against the trend.

It is impossible to separate it from the policies adopted by the Chinese government to stabilize foreign investment. As China’s business environment continues to improve, its economy also remains resilient and with great potential.

To some extent, it is attractive to foreign investment. And the policy support of the state, it is to introduce foreign capital to China to play a role of safeguard.

Gao Feng, the spokesman for the Ministry of Commerce, said the public consultation on the draft of the industrial Catalogue for Encouraging Foreign Investment (2020 version) ended on August 30.

It indicates that the Ministry of Commerce will remain committed to creating a market-oriented, law-based, and internationalized business environment, continuously improve services for foreign enterprises and foreign investors, and expand the level of the market opening so that global investors can share in China’s development opportunities and achieve mutual benefit and win-win results.

On September 16th, 2019, the Ministry of Commerce and other departments jointly released the statistical Bulletin of China’s Outward Foreign Direct Investment (OFDI).

Data show that China’s OFDI has achieved rapid growth in recent years thanks to the continuous transformation and development of the Chinese economy.

In 2019, China’s OFDI flow ranked second in the world and stock remained third in the world. Objectively speaking, in recent years, the internal driving force of China’s economy has been continuously strengthened, and external factors, including foreign capital, have played a weaker role in promoting China’s economy.

However, this does not mean that external factors are no longer important. On the contrary, by expanding the introduction of foreign capital and building a higher-level open economy, it plays an indispensable role in speeding up the formation of a new pattern of development in which domestic and international cycles play a dominant role and both domestic and international cycles promote each other.

The change in figures shows that China remains one of the world’s investment hotspots.

Despite frequent disruptions from trade protectionism and the impact of the epidemic, China’s years of development have created a complete manufacturing system, a sound business environment and competitive factors that cannot be replaced in the short term.

According to a new report from the American Chamber of Commerce in Shanghai, most American companies remain optimistic about the Chinese market. 78.6% of the companies surveyed said they would not shift their investment in China, an increase of 5.1% from the same period last year.

The report also showed that investment in China by EU companies was generally stable, with only about 10 percent of respondents considering moving abroad or changing their investment plans, which is close to the lowest level in a decade.

At present, China has achieved good results in its fight against COVID-19. The national economy has maintained a steady recovery momentum.

With the resumption of work and production of enterprises, China has a strong willingness and solid foundation for overseas investment and cooperation.

The Chinese government will continue to encourage and support Chinese enterprises to carry out outbound investment cooperation in accordance with international rules and make joint efforts with relevant countries and enterprises to achieve mutual benefit and common development and inject strong impetus into world economic recovery.

All these indicate that the prospect of foreign investment in China is considerable, and the present is also a good opportunity.

Relevant data show that there are several major domestic industries with a good development trend and a stable growth trend, which is also a good choice for foreign investment.

Let us introduce them one by one.

Robotics Industry

At present, the competitiveness of Chinese industrial robot enterprises is weak, and the domestic market share is relatively low.

The industrial robot we speak of is automatic equipment integrating mechanical, electronic, control, computer, sensor, artificial intelligence, and other multidisciplinary technologies.

It consists of a precision reducer, a servo motor, a control system, and a body.

At present, China’s robot-related enterprises have made certain achievements in the research and development of core components, but there is still a gap between them and the leading brands in Japan and Europe, and their market share is not high.

In addition, the upstream parts industry of industrial robots does not directly enjoy the benefits of the robot industry policy, but the downstream industry involves many application fields. With the continuous increase in market demand, the upstream industry scale will be stimulated to explode.

Financial Industry

The financial industry is a traditional industry, but also a developing industry in China, and is closely related to individual life.

First of all, all people in all walks of life need financing, whether long-term or short-term, whether domestic or overseas cash needs, whether immediate or long-term funding needs, the financial industry can meet these needs.

Moreover, with the opening up of China’s financial industry, the entry of foreign banks, and the reform of domestic financial mechanisms, the number of private financial institutions and insurance institutions will also increase, so the financial industry has a good development prospect in China.

In recent years, with the gradual internationalization of China’s financial market, China’s financial system has been continuously reformed, and a more open and perfect financial system will attract more financial subjects to invest in China’s market.

If you are interested in how to do market entry in China for a financial company, please refer to this article about how foreign financial companies can start a business in China.

Biomedical Industry

With China’s sustained and rapid economic growth and the improvement of people’s living standards, people’s demand for health is becoming bigger and bigger.

The aging of the population increases, drugs and diagnosis, and treatment way of updating and upgrading of the pharmaceutical industry of endogenous growth made China’s present situation of medical progress very big. Mainly is the result of China’s medical system reform and promotion of the development of the medical industry.

The Chinese government also strongly supports Chinese and foreign medical cooperation projects. For example, in Shanghai’s Zhangjiang Hi-tech Development Zone, a few domestic and foreign joint medical projects are also developing rapidly.

New Energy Industry

The new energy industry is an important basis for measuring the development level of innovative and high technologies in a country or region, and also a strategic commanding height for a new round of the international competition.

Developed countries and regions in the world have taken the development of new energy as an important measure to conform to the trend of science and technology and promote the adjustment of industrial structure.

The development of the new energy industry in China is very rapid. Policy support and technological progress are the main driving forces for the future rapid development of China’s new energy industry.

China will encourage clean energy power generation and strengthen the grid connection of solar power. The country will encourage the construction of large public buildings and public facilities, industrial parks, and other rooftop distributed photovoltaic power generation.

At present, there are many new energy sources under development, such as biomass energy, geothermal energy, shale gas, marine energy, and hydrogen energy.

Therefore, the country needs a lot of talents in this field to promote sustainable economic development. New energy technologies are indispensable today and will certainly continue to grow in the future.

Internet Service Industry

With the rapid development of the Internet, the importance of this industry for large enterprises is constantly increasing.

With the rapid development of Internet information technology, the influence range of Internet promotion and marketing is gradually increasing.

The change of economic model brought by the Internet to the whole of China has affected every aspect of society. The Internet has dramatically changed China, and it continues to do so.

Online advertising, search engine, e-commerce, online payment, and other services are increasingly accepted.

Major Internet companies are penetrating into these areas from their advantages in their core fields, forming orderly competition and driving the benign development of the Internet industry.

Thirdly, the construction of China’s network infrastructure, the development of 3G Internet, and the national policy support plan have created a very good prospect for the entire Internet industry.

FDI China maintains the highest ethical standards in all our business activities and ensures the highest compliance standards for our clients.

Our complete market entry package satisfies all kinds of industries for foreign companies wishing to start a business in China.

It enables foreign companies to save a large amount of time and allows your human workforce to focus on developing your business, instead of administrating bureaucratic procedures.

If you are ready to enter the industries mentioned before, contact us to discuss further.