An aerial drone photo taken on May 16, 2024 shows the city test track of Volkswagen China Technology Company (VCTC) in Hefei, east China's Anhui Province. [Photo/Xinhua]

China's ongoing progress in market openness, product innovation and business model transformation will secure its position as a strategic priority for multinational corporations, creating long-term financial returns, said market watchers and corporate executives on Thursday.

According to a report released on Thursday by the China Council for the Promotion of International Trade, about 90 percent of surveyed foreign companies rated China's business environment as "satisfactory" or higher. The survey included more than 400 foreign companies operating in China in the third quarter.

Among the evaluated criteria, the highest satisfaction rates were for market access, access to business premises and completion of exit procedures.

From a market perspective, foreign companies that were surveyed remained optimistic about China, said Sun Xiao, a spokesman for the council.

Expanding production lines in China or implementing digital transformation are the primary uses of increased investment among these companies, said Sun.

The surveyed foreign businesses have shown increased willingness to invest in China. Nearly 20 percent of the surveyed companies said they plan to increase their investment in China, an increase of 2.07 percentage points from the previous quarter. The country's eastern region is the primary area for their investment, accounting for 59.52 percent of the total, according to the report.

Denis Depoux, global managing director at management consultancy Roland Berger, said that since 2010, China's economic growth has been on a path of normalization. This can be viewed as a typical development path for a more mature economy.

"If we compare China's GDP growth in 2023 with other major economies, China has demonstrated solid growth," he said, adding that the country's growth prospects for the near future suggest resilience, with a gradual yet steady growth trajectory ahead. Depoux added that the nation will remain a key destination for multinational companies.

With the structure of foreign investment continuing to be optimized, China saw the high-tech manufacturing sector use 77.12 billion yuan ($10.83 billion) in foreign direct investment in the first three quarters of 2024, accounting for 12 percent of the national total, according to the Ministry of Commerce. That is an increase of 1.5 percentage points from the same period last year.

Also in that period of time, FDI in the manufacturing of medical instruments and equipment grew 57.3 percent year-on-year, while that for professional technical services increased 35.3 percent.

Executives of multinational corporations noted that as China intensifies its commitment to high-quality growth and enhances institutional openness through new policy measures and large-scale business platforms like the China International Import Expo, foreign companies are eager to explore expanded opportunities stemming from China's modernization efforts.

Speaking ahead of the seventh CIIE, which will be held in Shanghai next week, Takao Yagi, chairman and CEO of Toshiba (China) Co, said that during the event, the Japanese group will unveil a number of trailblazing innovations across key areas, including semiconductors, carbon neutrality and digital solutions.

"In line with China's green development goals, we seek to demonstrate our technological advancements dedicated to environmental protection and sustainable growth," he said.

United States-based industrial conglomerate 3M will put its intelligent converting center into operation at its Shanghai manufacturing site next week, following a $50 million investment.

Henry Ding, 3M's senior vice-president and president of the group's China branch, said this facility will work in synergy with its structural adhesive production line and prototyping center located at the same site, to better meet the diverse and evolving needs of product development and manufacturing in China's electronics and industrial sectors.

According to the report, about 60 percent of US companies that were surveyed and 48 percent of European companies noted a rise in China's market attractiveness in the third quarter, with increases of 15.26 percentage points for the US enterprises and 5.42 percentage points for the European ones.