Several American companies are expanding their operations in China, highlighting continued confidence in the country’s large consumer market, strong manufacturing base and long-term business opportunities.
Essential oils company doTERRA announced in March that it will build new manufacturing facilities in Shanghai. The project will add to the company’s existing China headquarters and research and development centre in the city.
The new facilities are expected to improve supply chain efficiency and help the company create a fully integrated operation covering research, production and sales.
Owen Messick, president of doTERRA China, said the investment reflects the company’s confidence in China and will help combine its innovation capabilities with the country’s well-developed manufacturing ecosystem.
doTERRA will also take part in the China International Import Expo for the ninth year in a row. The company’s booth space has grown from 9 square metres at the first expo in 2018 to 300 square metres this year.
The company is among several major US firms, including Tesla, Apple, Eli Lilly and Company and ExxonMobil, that continue to expand in China.
Fashion brand Coach, owned by Tapestry, Inc., recently opened a new store in Chongqing as part of efforts to strengthen its presence in central and western China. Tapestry now operates more than 350 stores in over 90 Chinese cities.
Coach has also partnered with Donghua University to host a youth exhibition on sustainable fashion in Shanghai to support local design talent.
Liliana Lucioni, president of Coach China, said China remains one of the company’s most important markets and continues to offer significant long-term potential. She said the company plans to expand its retail network and deepen cooperation with local creative communities.
According to a March report by the American Chamber of Commerce in South China, 95 percent of surveyed companies said they would continue operating in China, while 45 percent named the country as their top investment priority, up six percentage points from last year.
Eric Zheng, president of the American Chamber of Commerce in Shanghai, said Chinese authorities remain supportive of foreign investment and that many US firms are committed to growing their presence in the country.
He said businesses hope to see more government measures to boost domestic demand, noting that China remains an important supply base with a highly competitive manufacturing network.
China continues to attract foreign investors due to its large market, expanding innovation capacity and ongoing economic opening.
Official data showed that more than 70,000 foreign-invested enterprises were established in China last year, an increase of 19.1 percent from the previous year.
Yan Bing of Nankai University said foreign companies are increasingly investing in China not only for market access but also to benefit from the country’s growing innovation ecosystem.