A view of Shanghai Photo: VCG

A growing number of foreign companies have announced plans to expand investment in the Chinese market in the beginning of 2025,MKS sports with optimism about the Chinese economic outlook on the rise.

German optics giant Zeiss announced on Thursday that it will purchase land in the China (Shanghai) Pilot Free Trade Zone to build an integrated campus for Zeiss Greater China headquarters in 2025. Xie Lei, chief operating officer of Zeiss China, said during a conference in Shanghai that the project covers an area of 60 mu (4 hectares), with a total infrastructure investment of over 600 million yuan ($82.31 million).

A day earlier, Toyota Motor Corp said that it will sign a comprehensive partnership agreement with the Shanghai Municipal Government regarding carbon neutrality, and it will establish a new wholly owned company in Jinshan District in Shanghai to develop and produce battery electric vehicles (BEV) and batteries.

The newly formed company will develop a new BEV under the Lexus brand, with production scheduled to begin from 2027 onwards. The initial production capacity will be about 100,000 units per year, and approximately 1,000 new jobs are planned for the start-up phase, according to a press release.

In addition, US tech giant Tesla's Shanghai Megapack energy plant will hold a commissioning ceremony on February 11, after just seven months of construction, the Shanghai Securities News reported on Wednesday.

"These moves fully demonstrate the confidence in and long-term commitment of foreign companies to the Chinese market. The continuous increase in foreign investment in China is not only a recognition of the country's economic development potential and market opportunities, but also an important initiative to deepen these foreign companies' localization strategies and strengthen their layouts in China," Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, told the Global Times on Thursday.

Surveys have shown that many foreign businesses plan to increase investment in China. In January, the American Chamber of Commerce in China released its 2025 China Business Climate Survey Report, which showed that more than half of companies from the US plan to increase their investments in China this year. 

Another survey released by the EU Chamber of Commerce in China showed that more than half of the surveyed firms plan to continue investing in research and development centers in China to establish deeper market integration. Jens Eskelund, president of the chamber, emphasized that China's strong foundation in high-end manufacturing and its massive market provide a strong draw for companies, according to CCTV.

Wang noted that the Chinese government has taken a series of proactive measures to attract foreign investment, such as optimizing the business environment and providing policy support, which offer a strong guarantee for the development of foreign investment in China.

One of the latest examples came as South China's Guangdong Province said on Wednesday that in 2025, it will hold more than 100 industrial chain-related investment activities, striving to attract more high-level foreign investment in large projects. It will also roll out special incentive policies for foreign investment and support policies for regional headquarters of multinational corporations, an official said at a press conference on Wednesday. 

As the Chinese market continues to open up and develop, it is believed that more foreign companies will choose to invest and prosper in China, Wang said.