(Photo: CCPIT)

Guangdong, China's economic powerhouse, rolled out a red carpet for multinational corporations on April 2, hosting a high-profile government-business dialogue with over 100 executives from multinational firms, including Honeywell, IBM, and Cargill, as it reported a 5.9% year-on-year rise in foreign direct investment (FDI) for the first two months of 2025, defying global economic headwinds.

The Foreign-invested Company Tour in Guangdong, organized by the China Council for Promoting International Trade (CCPIT) and the Guangdong government, drew 108 participants from 14 countries and regions, including 16 U.S. firms and 11 Fortune 500 companies, as the province seeks to cement its status as a top FDI destination. The event included similar talks in Shenzhen on April 3, underscoring Guangdong's aggressive push to anchor global supply chains despite sluggish worldwide economic recovery.

(Photo: Liang Zijian)

Guangdong's FDI inflows reached 23.31 billion yuan in January-February, outpacing national averages, while new foreign-funded ventures jumped 16.8% to 3,484. The province now hosts 215,100 registered foreign enterprises, accounting for a quarter of China's total.

Guangdong offers world-class industries, an open ecosystem, and unmatched opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), said Zhang Guozhi, deputy governor of Guangdong province. Guangdong contributed 10.5% of China's GDP in 2024 and housed eight trillion-yuan industrial clusters spanning all 31 manufacturing categories.

Zhu Xiaojun, deputy director of the Guangdong Provincial Department of Commerce, highlighted the province's tax incentives, R&D subsidies, and streamlined approvals under policies like "Foreign Investment 10 Measures" and "20-point Investment Drive." Over 95% of industrial components can be sourced locally, a key draw for efficiency-focused investors.

Cumulative FDI in Guangdong exceeds $600 billion, with 350 Fortune 500 companies having established operations. Global firms are voting with their capital, Zhu said, citing Guangdong's 161 universities, 31 national labs, and the GBA's flagship science hub as catalysts for tech partnerships.

Zhu Yonghui with the GBA development office in Guangdong detailed plans to leverage the region's preferential policies, including simplified cross-border data rules and tax breaks in zones like Qianhai. "Invest here to access Asia's largest consumer base and next-gen infrastructure," said Zhu, referencing upcoming projects in green energy and smart cities.

Guangdong's FDI resilience reflects its strategic focus on easing market access and addressing investor concerns through rapid response mechanisms. Provincial authorities resolved queries on-site during the forum, part of a broader "one-enterprise, one-policy" service model to retain foreign capital.