China’s Ministry of Commerce reports that in the first seven months of 2026, 37,711 new foreign-invested enterprises were established nationwide, up 4.4% year on year, while actual foreign investment in high-tech industries reached 182.31 billion yuan, up 32.7% year on year. In the first half of 2026, nearly 4,800 foreign companies increased their investment in China. Behind these numbers is a structural shift: foreign businesses are moving from ‘Made in China’ to ‘Invented in China’ — setting up research and development centers on the ground.
This ‘China production → China R&D’ wave shows up in concrete cases. German optics group Zeiss came to China 69 years ago and has passed through three phases: first a sales market, then building factories with R&D and supply chains, and now co-innovating with China. As Zeiss Greater China president Maximilian Foerst puts it, the company is ‘innovating not just for the Chinese market, but for the whole world.’ ABB Robotics has run a roughly 300-person R&D team in China since 2005; China is ABB’s largest global robotics delivery market and forms a ‘twin-center’ model with Sweden. The global R&D center for small robots, the control-cabinet R&D center, and some chief experts are all based in China. ABB China president Han Chen notes that doing R&D in Shanghai is ‘faster and more flexible than in Sweden.’
What does this mean for foreign brands? China combines a massive consumer market, a deep talent pool (engineering, AI, manufacturing), mature supply chains, and proactive policy support. For a foreign seller or brand, entering China is no longer only about exporting products — it can mean co-creating products with Chinese partners and talent, shortening time-to-market, and reaching global scale from a China base.
Policy tailwinds keep building. The 2025 edition of the Catalogue of Encouraged Industries for Foreign Investment is in effect, guiding FDI into advanced manufacturing, modern services, high-tech, and energy conservation. The Action Plan for Stabilizing and Optimizing Foreign Investment addresses foreign M&A and cross-border data flows to raise convenience. These measures lower the friction of building a local innovation footprint.
If you are a foreign brand or seller planning to enter China, the smartest move may be to localize not just your sales but your innovation. Hongshengze Business Management helps international sellers localize, stay compliant, and scale in China end-to-end — from market entry and entity setup to R&D localization and e-commerce. Turn China’s innovation momentum into your market advantage. Contact us via https://gocntrade.com for a tailored plan.