What's Happening?
Danfoss, a Danish energy efficiency solutions provider, has significantly expanded its operations in China throughout 2025. The company launched a newly upgraded application development center in Suzhou in January, inaugurated its first carbon-neutral
factory in Nanjing in April, and opened its largest China-based production base in Haiyan, Zhejiang Province, in September. This expansion is part of a broader trend, as China saw 61,207 newly established foreign-invested enterprises in the first 11 months of 2025, marking a 16.9% increase year-on-year. The country's vast market, complete industrial chains, and dynamic innovation ecosystem continue to attract foreign investment despite global economic uncertainties.
Why It's Important?
China's ability to attract foreign investment is crucial for its economic growth and global economic stability. The influx of foreign enterprises, like Danfoss, highlights China's role as a key player in global supply chains and its potential to drive innovation. This trend is significant for U.S. businesses and policymakers, as it underscores the competitive advantage China holds in manufacturing and innovation. The continued investment in China by foreign companies may influence U.S. economic strategies and trade policies, especially in sectors where China is a dominant player.
