Multinational corporations in China: Capture market and growth opportunities
April 2022
Over the last four decades, China experienced a surge in foreign direct investment (FDI) due to their economic reform and openness. They are the world’s second-largest economy, and the World Bank and International Monetary Fund (IMF) have predicted that China will outperform other major economies in the next four to five years. As a result of this rapid growth, China continues to attract numerous foreign investors.
This report addresses the hot topics discussed in the ‘Two Sessions’, the annual plenary meetings of the National People’s Congress (NPC) and Chinese People’s Political Consultative Conference (CPPCC), China’s top legislature and political advisory bodies. The sessions serve as an important window into China’s development, covering a wide range of topics concerning China’s domestic affairs and foreign policies, particularly those that could impact foreign investors.
PwC has captured the key points and implications of the sessions for Multinational Corporations (MNCs) in China from the perspective of macroeconomic development, key economic targets and policies, proactive fiscal policy and prudent monetary policy, further opening-up of the Chinese economy, digital economy, and carbon peak and neutrality (refer to pages 8–15 of this report for more details).
In February–March 2022, PwC China conducted a flash survey during the annual MNC Executives Breakfast. The results collected in the live poll revealed that most MNCs in China remain optimistic about the market conditions attributable to the population size in China, unlimited growth potential and growing middle class, despite the challenges faced, such as the fluctuating COVID-19 pandemic environment, talent retention, policy uncertainties and IP protection. China is a vast but fragmented market; MNC leaders should understand the market’s growth potential and find areas where their company can benefit it (refer to pages 16–27 of this report for more details).
