MNCs capitalize on NE China investments

SHENYANG — As the new year begins, Huajin Aramco Petrochemical Co's fine chemicals and raw materials project site in Panjin, Northeast China's Liaoning province, is buzzing with activity.

This project, with a total investment of 83.7 billion yuan ($11.9 billion), stands as Saudi Arabia's largest investment in China and is jointly funded by Saudi and Chinese enterprises.

Since its groundbreaking in March 2023, local authorities have provided tangible support to help solve problems, accelerating the project's progress, according to Zhong Luwei, assistant to the president of Huajin Aramco.

As an old industrial base, Northeast China, comprising the provinces of Liaoning, Jilin and Heilongjiang, has leveraged its complete industrial and supply chains to boost high-quality development, amid the country's push for the full revitalization of the region.

Empowered by policy dividends, the region has seen continuous optimization of its industrial structure and modern infrastructure.

While improving the "hardware", local governments have made continuous efforts to optimize the business environment, bolstering multinationals' confidence to invest and increase investment in Northeast China.

On Sunday, authorities in Liaoning held their "first meeting of the new year", proposing efforts to create a first-class business environment that is market-oriented, law-based and internationalized. It aims to establish a service system to support all types of business entities through their entire life cycles.

Dalian, the largest port city in Northeast China, has unveiled 15 specific measures to encourage foreign investors to establish R&D centers in the city. These include improving R&D convenience, attracting overseas talent and strengthening intellectual property protection.

After setting up a research and development center there, Prime Planet Energy Dalian — a joint venture between Japanese and Chinese enterprises — received more than 8 million yuan in incentive funds in 2025.

Efficient government services have strengthened the company's investment confidence, said an executive of Prime Planet Energy Dalian, citing the company's 3.7 billion yuan pure electric vehicle battery project in Dalian, which moved from contract signing to commencement of construction in just three months.

Further north in Shenyang, tire manufacturer Michelin is proving that long-term commitment pays off. Since establishing its first Chinese factory there in 1995, the group has expanded its presence, with cumulative investment in the city exceeding 12.5 billion yuan since 2010.

Besides a huge consumer base and a rapidly upgrading auto industry, there is an increasingly complete industrial chain and a continuously optimized business environment, said Matthew Ye, president and CEO of Michelin Greater China and Mongolia.

In Northeast China, improvements in the business environment are reflected not only in visible services such as rapid approvals and land-use guarantees, but also in areas like the innovation ecosystem, industrial development, and the creation of a livable and workable environment.

This winter, the China-Germany Equipment Manufacturing Industrial Park in Shenyang provided clean energy heating for BMW Brilliance's powertrain factory, ensuring a constant temperature with 100 percent non-fossil energy and helping the factory move toward becoming a "zero-carbon factory".

"The park's strategy aligns perfectly with BMW's sustainability philosophy," said Wang Jun, senior vice-president of finance and CFO of BMW Brilliance Automotive Ltd.

Given the large number of foreign-funded enterprises and foreign employees in the China-Germany Equipment Manufacturing Industrial Park, the park administration has rolled out a wide range of services. These include visa processing and business consulting, alongside medical and educational facilities for foreign staff and their children.

The continuous optimization of the business environment is helping foreign enterprises seek longer-term development.

The Shenyang factory has grown into Michelin Group's largest and most advanced high-end passenger car tire manufacturing base globally, and has become a strategic pivot point that plays a core role in Michelin's global supply chain, said Ye.

"We believe the Chinese market will continue to develop toward high-quality, innovation-driven growth and sustainability, offering broad opportunities for global enterprises," Ye said.

Xinhua