BEIJING, May 13 (Xinhua) -- American businesses have reaffirmed their commitment to the Chinese market and manufacturing ecosystem, as indicated by a series of plans so far this year to ramp up investments in China.
In a key step toward localizing its supply chain in China, essential oils giant doTERRA in March announced plans to build manufacturing facilities in Shanghai, adding to its existing China headquarters and research and development (R&D) center in the city.
The move underscores the company's long-term confidence in the Chinese market and is expected to improve supply chain efficiency.
Owen Messick, president of doTERRA China, said the move will help build a complete industrial chain covering R&D, manufacturing and sales, integrating its innovation with the local mature manufacturing ecosystem to drive future growth.
The company will participate in the China International Import Expo in Shanghai for the ninth consecutive year. It started with a 9-square-meter booth at the inaugural expo in 2018, when it secured intended purchase deals worth 380 million yuan (about 55.5 million U.S. dollars). This year, its exhibition space will expand to 300 square meters.
doTERRA represents a cohort of American companies, including Tesla, Apple, Eli Lilly and ExxonMobil, that are keen on tapping into China's manufacturing prowess and supersized market, and have achieved huge success in the country.
Among them is also Coach, a brand under fashion company Tapestry. The company recently opened a new store in the southwestern municipality of Chongqing as part of efforts to expand its presence in central and western China. Tapestry now operates more than 350 stores across over 90 Chinese cities.
The brand has also partnered with Donghua University to hold a youth creative works exhibition about sustainable fashion in Shanghai, supporting the development of local design innovation, creativity and talent.
China has always been one of the most important markets with immense long-term potential in the group's global strategy, said Liliana Lucioni, president of Coach China. The company has confidence in the resilience and vitality of China's consumer market and remains committed to investing in China with a long-term perspective, Lucioni said.
Lucioni added that the company plans to continuously expand its retail network and deepen ties with local cultural and creative communities to better serve Chinese consumers and grow alongside the market.
According to a March report by the American Chamber of Commerce in South China, 95 percent of the surveyed companies, mainly from the United States, China and Europe, remained committed to maintaining operations in China, while 45 percent ranked the country as their top investment priority, up six percentage points from 2024.
Eric Zheng, president of the American Chamber of Commerce in Shanghai, said Chinese governments at all levels are highly business-friendly and attach great importance to foreign direct investment.
"With such strong policy support, we are fully committed to expanding our business footprint in China in the long term," he said.
Zheng said that U.S. firms hope to see further government measures to spur economic growth.
"We are here for the long run, and therefore need a more robust domestic market," he said, adding that China remains a key supply base for member companies and boasts an unparalleled competitive manufacturing ecosystem.
China remains an attractive destination for global businesses, thanks to its robust economic growth, vast market, continued opening up and comprehensive supply chains.
Official data revealed that 70,392 foreign-invested enterprises were established in China last year, up 19.1 percent year on year. Many multinationals are increasingly positioning China as a key innovation hub for their global operations.
Yan Bing, director of the Institute of International Economics at Nankai University, said the new foreign investments reveal a trend to integrate deeper into China's innovation ecosystem.
"China's appeal is upgrading from a market dividend to an innovation dividend and an institutional opening-up dividend," Yan said. ■
