China saw its foreign trade and ability to attract foreign direct investment (FDI) rebound during the second quarter of this year. China is the world’s largest consumer market, with 400 million middle-income people and a large number of rural residents with strong purchasing power, who are increasingly pursuing better life and services, said Wei Jianguo, Vice Chairman of the China Center for International Economic Exchanges. He said this explains why multinationals have not withdrawn from the country. Instead, many of them, including BASF, BMW, Nestle and Coca-Cola, have increased investment in China as they believe that investing closest to the major consumer base is the cheapest and most efficient way to compete with other established rivals in this market. Thanks to global investors’ rising confidence, China saw FDI rise 8.4% on a yearly basis in the second quarter of the year. In June, FDI inflows expanded 7.1% year-on-year to CNY117 billion, the Ministry of Commerce (MOFCOM) said.

Nouryon, the Netherlands-based chemical manufacturer, said earlier this month that it will build a new plant in Ningbo, Zhejiang province, to produce tert-Butyl hydroperoxide and tert-Butyl alcohol, essential ingredients in the production of polymers and composites, and two key intermediates in its organic peroxides business. The manufacturing facility is scheduled to be completed in the second half of 2021 and will have an annual capacity for 35,000 metric tons of TBHP and TBA. “This is an important step in integrating our regional supply chain for TBHP, which is currently imported,” said Johan Landfors, President of Technology Solutions at Nouryon. “Demand for TBHP and TBA continues to rise in Asia, and our new facility will ensure that we can meet that demand for years to come.” He said the new facility represents a significant investment for the firm to build its presence in fast-growing markets. It also underlines its focus on working with local partners.

“Some countries are considering industrial self-supply and removing industrial chains from China on the heels of the outbreak, but I think the cost is too high and it cannot be done in reality,” Ludovic Subran, Chief Economist at Germany-based insurer Allianz, told the Global Times, taking note of China’s overwhelming advantage in manufacturing electronic products, auto parts, and mechanical equipment. Subran said that the onslaught of the pandemic has put the global economy on halt and dealt a blow to the insurance industry. “But China’s insurance sector has been bouncing back since the second quarter. More consumers are willing to learn and purchase insurance policies after the pandemic ebbs,” Subran noted. Riding on the boom, he estimated that by 2030 the revenue of China’s insurance market will likely hit €777 billion, which equates to the combined revenue from the UK, France, Germany and Italy.

Swedish furniture-maker IKEA also scaled up investment in China recently. It opened its first IKEA City store in downtown Shanghai last week, the first such store in the Chinese mainland, after the launch of the online IKEA Tmall flagship store in March. IKEA said it is “very optimistic and confident” over its business in China in the second half as Chinese consumers lean toward convenient and fast shopping experiences. “In the future, we plan to have more reach in the third and fourth-tier cities here in China, and will continue to expand our online and offline marketing channels,” IKEA said.

Leon Wang, Executive Vice President, International and China President at AstraZeneca, said that the company is confident of China’s improving investment environment and the rosy prospects. “AstraZeneca always looks to China’s powerful economic potential despite the challenge of the pandemic, and we will always support China’s development with action,” Wang said, as reported by the Global Times.