Part 9/12:
Although China remains eager to attract foreign investment and technology transfer—particularly to sustain its ambitious growth targets—the environment is becoming more cautious. Increased scrutiny—and the revival of state secrets laws—means foreign firms need strong local partners to navigate bureaucratic and political complexities.
Foreign investment inflows dropped sharply in 2023, hitting a 30-year low, as many multinationals adopt a "China plus one" strategy—diversifying investments across emerging markets like India and Indonesia. Despite this, China's leadership emphasizes an open stance—seeking a delicate balance between self-reliance and international cooperation—to continue attracting strategic investment.