Chinese government is betting on attracting international companies to boost its domestic consumption
The vice president of China, Han Zheng, reinforced on Tuesday (June 16, 2026) the plan to increasingly open the country’s economy to foreign companies. The speech made during the 7th Summit of Multinationals in Qingdao is yet another sign of China’s commitment to moving forward with the liberalization of its internal market, an objective that has already been indicated by the president (Communist Party of China).
During the visit of the President of the United States (Republican Party) to Beijing last month, Xi told executives accompanying the American leader that China “it will increasingly open its doors to the world”indicating that it is a good time to evaluate investments in the country. During the summit in the coastal city of Qingdao, the government embodied this objective.
At the event, Zheng addressed executives from dozens of multinational companies. He stated that the Chinese government is working on a series of reforms to improve policies for foreign investment and encouraged new companies to sell their products in China.
He cited 4 reasons for companies to invest in China:
- consumer market of 1.4 billion people;
- robust industrial sector to support businesses;
- possibilities for integration with Chinese innovation initiatives;
- efforts by the Chinese government to create a new model of economic opening.
The Chinese government’s main objective in proposing this new economic opening is to boost its domestic demand. Although Chinese companies are in a positive moment of expansion into other countries, the result in the domestic market is below expectations, with recent drops or stagnations in retail sales.
To solve this problem in the short term, the Chinese government launched in November a plan to cultivate consumer markets, valued at 1 trillion yuan (R$800 billion) by 2027. The effort does not stop there, with the correction of stagnant domestic demand being one of the main themes of the .
In addition to encouraging Chinese companies to recover ground in retail, China welcomes the entry of new companies to stimulate Chinese consumers.
At the Qingdao summit, 20 projects financed by foreign capital were signed, totaling US$2.56 billion in investments. Of these, 9 projects are aimed at foreign trade, with US$1.68 billion in total value of imports and exports, and 2 are international economic cooperation, worth US$44 million.
