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Foreign-funded companies ramp up reinvestment in China

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China

China

Foreign-funded companies ramp up reinvestment in China

2025-07-27 16:42 Last Updated At:07-28 05:37

Foreign-funded companies have been increasing their reinvestment and expanding production in China, indicating strong confidence in the Chinese market amid the country's efforts to promote opening up.

In the Suzhou Industrial Park, east China's Jiangsu Province, Germany-based home appliance manufacturer Vorwerk recently announced an additional investment of 500 million yuan (around 69.89 million U.S. dollars) through profit reinvestment to further boost production capacity and research and development efficiency of new energy vehicle components.

"Chinese market is a very big market and it's growing very fast, and we also want to participate in this growing of the market. And therefore we are also now building a second building on the other side of the street, a second factory to fulfill the demands of our customers," said Martin Gluchowski, manager of global operations controlling systems at Vorwerk.

This marks Vorwerk's fourth investment capital increase in China. In 2008, Vorwerk first established a factory in the country, starting with just a handful of employees in a rented facility. Since then, the company has built its own factory and has formed a local research and development team.

With the rapid development of the Chinese automotive market, the company's annual sales have increased from an initial 200 million yuan (around 27.96 million U.S. dollars) to one billion yuan (around 139.78 million U.S. dollars), and its current production capacity can no longer meet market demand. Therefore, expanding production has become imperative.

"I use a lot of data to discuss our product direction and customer needs with the executives at headquarters, focusing on how to align these aspects, which is crucial. He (the executive at headquarters) believes that, given the rapid development in China, there is a need to better meet local demands," said Huang Wenbiao, general manager of Vorwerk Autotec Suzhou Limited.

Swedish company Alfa Laval provides heat transfer, separation, and fluid handling products and solutions worldwide. The company has operated in China for over 40 years.

Mattias Andersson, President of Alfa Laval China Operations, said that over the past five years, the company has repeatedly reinvested its profits in China. Notably, in 2022, 2023, and 2024, the company has consistently reinvested for three consecutive years, bringing about tangible changes.

"So we have in the last five years built five new factories. In the last five years, we have invested around one point five billion rmb," said Andersson.

The continuous increase in investment stems from a strong confidence in the Chinese market. In 2024, the Chinese market surpassed the United States for the first time, becoming the company's largest single market globally.

This year, the company also plans to reinvest profits to establish new production lines and implement smart upgrades.

"Chinese are the most profitable market, so we have a good business here and we're growing very well. So we are very happy with the developments. But at the same time, we can also see that competition increases. It is getting harder and harder to differentiate yourself from competition. So we have to invest more and more to make sure that we have this gap due to competition. When you make an investment, that's a prediction of the future. If you believe in the future, you are willing to invest. If you don't believe in the future, not willing to invest. I mean the investments we do that always to predict the future and we believe strongly in the Chinese markets," he said.

Foreign-funded companies ramp up reinvestment in China

Foreign-funded companies ramp up reinvestment in China

A former television host from Taiwan, Zhai Xuan, has made a pivotal decision to leave mainstream broadcasting in order to create content that provides a better understanding of the Chinese mainland and cross-strait relations.

Zhai, a seasoned television host with over a decade of experience in Taiwan's media landscape, recently addressed an audience at an event in Beijing, where she revealed her complete transition into independent online media.

In her remarks, she articulated her aspiration to bridge what she perceives as a significant information gap between audiences on both sides of the Strait, highlighting her commitment to fostering a deeper understanding and connection through her new endeavors.

"I was really surprised by all the fake news. There were stories saying people on the mainland can't afford tea eggs or that they live in mud houses and in Taiwan, this was the main information many people received," said Zhai.

Zhai said she initially began producing online videos to challenge such perceptions while continuing her work as a television host.

In April 2025, she travelled to the mainland with her father to fulfill her late grandfather's wish to return to his hometown. The trip, which reunited family members separated since 1949, was recorded in a video series titled "Journey to Find Our Roots", drawing attention from viewers in both Taiwan and the mainland.

"Many people in Taiwan told me that after watching, they wanted to apply for a mainland travel permit immediately and go looking for their relatives. Some had long forgotten these things, but after seeing my story, they began thinking about their hometowns and family members they had never met and decided to search for their roots," Zhai shared her story at the event.

By mid-2025, Zhai said she began to feel increasing pressure amid rising political tensions and a tightening atmosphere around cross-Strait exchanges in Taiwan.

After more than 12 years in the industry, Zhai resigned from her position, believing it was the right thing to do.

"At that moment, I felt this was a major issue,not just for me, but for Chinese people on both sides of the Strait. If I backed down then, I wouldn’t be standing on the right side," said Zhai.

Since leaving television, Zhai has broadened her online programming to encompass a range of daily-life topics, including practical guidance on applying for a mainland travel permit and using commonly employed mobile applications, in addition to content that delves into historical memory and cultural connections across the Strait.

As the debate over cross-Strait relations continues in Taiwan, Zhai said she remains committed to her current path.

Former Taiwan TV host bridges cross-Strait divide via online media

Former Taiwan TV host bridges cross-Strait divide via online media

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