China placed fourth, rising two spots, in the 2026 Foreign Direct Investment Confidence Index released on Friday by Kearney — a United States-based management consulting firm — while retaining its top ranking among emerging markets for a third consecutive year.

The United States, Canada, and Japan held the top three spots on the index.

The latest survey shows that multinational companies continue to see China as a key destination for long-term investment, even as geopolitical tensions intensify, industrial policies expand, and technological competition accelerates globally.

Sherri He, managing director of Kearney China, said China's leadership in artificial intelligence, along with the scale of its domestic market, are highly appealing to foreign investors. The country achieved GDP growth of 5 percent in 2025, due in part to its export resilience and increasing embeddedness in global supply chains.

Additionally, Chinese manufacturers are increasingly price-competitive in high-value segments like specialized machinery and capital goods, technology-linked products, and across sectors like green technology and biomedical equipment, He said.

"China's updated Catalogue of Encouraged Industries for Foreign Investment released last year outlines a range of supportive policies, representing a renewed commitment to attracting global investment across key sectors like manufacturing and green development," she added.