Multinational Companies Deepen China Presence Through Innovation Partnerships
Multinational companies are strengthening their presence in China by moving beyond traditional market participation and embracing deeper collaboration with local industries. Executives attending the 7th Qingdao Multinationals Summit emphasised a growing focus on co-creation, innovation and long-term partnerships as they align future strategies with China’s 15th Five-Year Plan (2026–2030).
The three-day summit, held in Qingdao in east China’s Shandong Province, brought together representatives from 357 multinational companies across 44 countries and regions. Throughout the event, the theme of “co-creation” emerged as a central focus, reflecting the changing role of global firms in the Chinese market.
From Market Access To Joint Innovation
Business leaders noted that multinational companies are no longer viewing China solely as a destination for products and services. Instead, many are increasingly treating the country as a centre for innovation and collaborative development.
Geng Ming, president of Alstom China, said companies must move beyond simply introducing technologies into the Chinese market. He explained that innovation now requires close cooperation with local partners, ensuring that new developments are created within China while also identifying opportunities to expand them internationally.
This shift reflects a broader transformation in the relationship between multinational corporations and Chinese industry, with greater emphasis on shared research, development and global growth.
Chinese Manufacturing Drives Global Expansion
Executives also highlighted the rapid improvement of China’s manufacturing capabilities and industrial ecosystem. Cao Yang, global vice-president of Baker Hughes and president of Baker Hughes China, said perceptions of China have changed significantly over time.
According to Cao, many companies initially regarded China primarily as an end market. However, the growing strength of Chinese manufacturing has encouraged international firms to work alongside local partners to bring Chinese-made products and technologies to overseas markets.
This approach enables multinational companies to combine global networks with local expertise, creating opportunities for expansion beyond China’s borders.
China Emerges As A Global Innovation Hub
Several companies pointed to China’s growing role in shaping their worldwide research and development strategies. Yang Lan, senior director of public affairs at Herbalife China, said the country’s industrial ecosystem has matured considerably since the company first entered the market.
She noted that products developed in China are now exported to Southeast Asia and other international markets. As a result, many multinational firms increasingly regard China as a global innovation hub rather than simply a consumer market.
The transition reflects a broader evolution in corporate strategy, moving from “entering China” to “rooting in China” and now towards “co-creating” with China.
Five-Year Plan Shapes Future Investment
Business leaders indicated that China’s upcoming 15th Five-Year Plan will play a significant role in guiding future investment and innovation decisions.
Denis Depoux, global managing director at Germany-based strategy consulting firm Roland Berger, described the plan as an important framework for economic transformation. He said China faces the dual challenge of modernising traditional industries while accelerating growth in emerging sectors such as healthcare, artificial intelligence and electric mobility.
Meanwhile, Geng said Alstom’s journey in China has evolved from participating in rail transit projects to becoming integrated into the country’s broader development.
Liu Jiang, vice president and general manager of Greater China at Revvity, added that the plan provides clear policy and industry support for innovation in the biomedical sector. He said the company aims to strengthen its role as a partner in China’s innovation ecosystem.
With inputs from Reuters