Innovation and reform expected to drive push for higher-quality growth

China's latest growth targets and policy priorities set out in the Government Work Report have boosted the confidence of multinational companies in the country's economic outlook and long-term market potential, analysts and business leaders said on Sunday.

They said that as 2026 marks the opening year of China's 15th Five-Year Plan (2026-30) period, the report seeks to anchor expectations with pragmatic targets and drive momentum through innovation and reform, supporting higher-quality growth, deeper openness and a stronger foundation for long-term modernization.

According to the Government Work Report submitted to the fourth session of the 14th National People's Congress, China's top legislature, for deliberation last week, the nation set its 2026 GDP growth target at 4.5 to 5 percent and pledged to expand two-way investment cooperation.

READ MORE: China sets 2026 economic growth target at 4.5-5%

"China's expected 2026 GDP growth reflects a strategic shift toward high-quality development, allowing investment and resources to better support technological innovation and people-centered priorities," said Denis Depoux, global managing director of Roland Berger, a management consultancy based in Munich, Germany.

He added that for foreign companies, China's opening-up measures and GDP growth target send a strong signal of stability at a time of rising global uncertainties. This commitment provides the certainty needed for long-term planning, ensuring policy continuity and sustained market demand.

Echoing that sentiment, Zhang Shuibo, a deputy to the 14th NPC and a professor of economics at Tianjin University, said that China's continued commitment to openness and deeper integration with global supply chains, even amid intensifying geopolitical tensions, further consolidates its role as a key and reliable destination for international capital and advanced manufacturing industries.

The latest foreign trade data underscores this trend. Foreign-invested enterprises in China saw their foreign trade value grow 3.7 percent year-on-year to 13.27 trillion yuan ($1.92 trillion) in 2025, marking growth for seven consecutive quarters, statistics from the General Administration of Customs showed.

Customs data also showed notable foreign trade growth among foreign-invested businesses in sectors including food processing, pharmaceutical manufacturing, and computer and communications equipment manufacturing.

Executives from multinational companies said the improved outlook is already prompting new expansion plans in China, noting that the country is evolving from a major market into a key hub for innovation and global competitiveness.

Anna An, president of the China unit of German industrial and consumer goods group Henkel, said that China's continued opening-up enables foreign companies to engage more deeply in the country's industrial development, creating fresh opportunities and strengthening Henkel's confidence in its long-term growth in the country.

"The steadily improving business environment also gives us the assurance to anchor our innovation and production capabilities here, helping us move from simply entering the market to taking root and creating value together," she added.

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Yin Zheng, executive vice-president of China and East Asia operations at French industrial conglomerate Schneider Electric, said the group's new industrial park in Wuxi, Jiangsu province, will be completed soon, while another newly built industrial park in Xiamen, Fujian province, is scheduled to begin operation in the first half of 2026 as the company's largest global production base for medium-voltage products.

Also encouraged by the Chinese government's initiatives to boost consumption and expand imports, Teh-han Chow, CEO for China at Fonterra Co-operative Group, a New Zealand-based dairy and nutrition products manufacturer, said the company will further invest in its application and innovation centers across China and supply more premium grass-fed dairy products this year to meet the nation's growing market demand.

Contact the writers at zhongnan@chinadaily.com.cn