Global firms turn to M&A in EVs and biotech to deepen China investment: KPMG

Three successful 4 multinational corporations (MNCs) operating successful mainland China person maintained oregon accrued their investments successful 2025, according to a caller KPMG survey, contempt Washington stepping up efforts to decouple from Beijing and its allies pursuing suit.

The survey published connected Monday, polling 137 elder executives from planetary companies operating successful the world's second-largest system betwixt June and September, revealed that lone 1 per cent reported preparing to exit the market. About 20 per cent said they whitethorn trim investment, portion the remainder had yet to decide.

Companies readying to grow said they would prosecute greenfield investment, mergers and acquisitions oregon associated ventures to deepen their China presence.

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"We person seen a important summation successful mergers and acquisitions activities among MNCs successful China implicit the past six months," said Mark Harrison, spouse and co-head of multinational clients astatine KPMG successful China.

MNCs were acquiring companies successful high-performing sectors specified arsenic electrical vehicles, aesculapian technology, biotechnology, h2o technology, precocious materials and robotics to pat into planetary concern potential, helium said.

The concern manufacturing and automotive sectors are precocious connected the maturation database of multinational corporations. Photo: Xinhua alt=The concern manufacturing and automotive sectors are precocious connected the maturation database of multinational corporations. Photo: Xinhua>

"In consumer-facing sectors, amid fierce section contention and challenging marketplace dynamics, MNCs are pursuing vertical integration by acquiring distributors, agents and archetypal instrumentality manufacturers to amended recognize and service Chinese consumers," Harrison added.

About 60 per cent said they had shifted absorption from maturation to profitability connected the mainland, portion 83 per cent had localised concern aspects, peculiarly manufacturing, proviso chain, probe and development.

MNCs expressed greater assurance successful the Chinese system than successful the planetary economy, some successful the abbreviated and mean term. Only 27 per cent of respondents reported astatine slightest mean assurance successful planetary economical maturation successful 2025, compared to 64 per cent who expressed astatine slightest mean assurance successful China's economical prospects implicit the adjacent 3 to 5 years.

By sector, MNCs expressed the highest assurance successful China's economical maturation prospects implicit the adjacent 3 to 5 years successful beingness sciences and healthcare astatine 70 per cent, followed by concern manufacturing, user and retail and automotive sectors.