A KPMG survey shows three in four multinational corporations operating in China have maintained or increased investments this year, focusing on mergers and acquisitions in electric vehicles and biotechnology. Despite geopolitical tensions, only 1% are preparing to exit the market.
A KPMG survey published on Monday shows that three in four multinational corporations (MNCs) operating in mainland China have maintained or increased their investments in 2025, despite Washington stepping up efforts to decouple from Beijing and its allies following suit. The survey, polling 137 senior executives from global companies in the world's second-largest economy between June and September, revealed that only 1 per cent reported preparing to exit the market. About 20 per cent said they may reduce investment, while the rest had yet to decide.
Companies planning to expand said they would pursue greenfield investment, mergers and acquisitions or joint ventures to deepen their China presence. "We have seen a significant increase in mergers and acquisitions activities among MNCs in China over the past six months," said Mark Harrison, partner and co-head of multinational clients at KPMG in China.
"In consumer-facing sectors, amid fierce local competition and challenging market dynamics, MNCs are pursuing vertical integration by acquiring distributors, agents and original equipment manufacturers to better understand and serve Chinese consumers," Harrison added.
The survey found optimism in life sciences, healthcare and manufacturing, with half forecasting revenue growth. Key sectors include electric vehicles, biotechnology and semiconductors, even amid regulatory challenges like the US Biosecure Act.