GUANGZHOU - The American Chamber of Commerce in South China (AmCham South China) released on Wednesday its 2025 Special Report on the State of Business in South China, which highlighted that the world's second-largest economy continues to be an attractive investment destination.

This year's report, the 21st in the series, provides a comprehensive and quantitative analysis of the business community, offering valuable insights into development trends in South China. A total of 316 companies participated in the latest survey in 2024.

The report highlights China's leading position in global investment priorities, with 58 percent of foreign companies surveyed ranking it among their top three investment priorities. Looking ahead to 2025, 76 percent of the companies intend to reinvest in China, with a notable 74 percent of the American companies planning reinvestments, up 11 percentage points year-on-year.

The surveyed companies are mainly from the US, China, and the European Union. More than half of them are wholly foreign-owned, and over 30 percent American-invested. The proportion of companies that generated over 60 percent of their global revenue from China increased by 5 percentage points, reaching a total of 31 percent, said the report.

ExxonMobil China is a testament to the increasing confidence foreign investors have in the country, with the company recently launching trial production at a new petrochemical project in Guangdong's Huizhou. Additionally, it will open a cutting-edge technology center in the province to bolster its research and development capabilities to support global customers.

"China is a key part of our growth strategy, and Guangdong is an outstanding partner. We strongly value its professional and efficient government, well-developed infrastructure and business-friendly environment, and skilled workforce," said Jean-Marc Taton, chairman of ExxonMobil China.

Growth potential of the Chinese market continues to be the primary driver for increasing investments in China or shifting investments from other markets to China, followed by the industrial cluster effect and preferential policies, according to Harley Seyedin, chairman and president of AmCham South China.

In 2024, China's GDP reached a record 134.91 trillion yuan ($18.81 trillion), marking a 5-percent year-on-year increase. This robust economic performance continues to attract global investors. Additionally, the ongoing policy incentives from China have also boosted the confidence of foreign enterprises.

In February, China issued an action plan to stabilize foreign investment, with efforts to expand opening-up in sectors like telecommunication, biotechnology and medical services, and offering comprehensive services for foreign-invested projects.

It encourages foreign investment in the high-tech and animal husbandry industries, and in services such as health care and finance. The plan also lifts restrictions on loans for foreign firms and ensures equal participation in government procurement for both foreign and domestic companies.

"China is in the process of moving up the value chain, and we believe the Chinese consumer market will continue to grow exponentially," Seyedin said. He noted that over 73 percent of AmCham's member companies in south China are no longer focused on exports; instead, they are primarily involved in importing or producing goods and services for the Chinese market.

Last September, China's National Development and Reform Commission and the Ministry of Commerce jointly issued the 2024 version of the negative list for foreign investment access, announcing the removal of all restrictions on foreign investment in the manufacturing sector.

This move is viewed favorably by a substantial proportion of the companies surveyed, with some optimistic that the policy will create greater investment opportunities and broader market access, thereby facilitating expansion and growth.

Seyedin told Xinhua that lifting all restrictions on manufacturing investment in China could lead to a 30-percent increase in investment activities and an expansion of the country's manufacturing capabilities.

It is estimated that the member companies of AmCham South China have set aside a total of $14.59 billion from their profits in China for reinvestment over the next three to five years. This will be used to expand existing operations and capture additional market share, representing a 33.18-percent increase compared to the previous reinvestment figure.

"Businesses are increasing their commitments in China to secure a stronger foothold in this critical market. The reinvestment surge signals confidence in China's future, and their hope for US-China increased cooperation," Seyedin said.