As China's intense market competition makes it a "fitness center" for multinational companies, those that survive and thrive here can compete anywhere else in the world, said Li Jiaming, consulting businesses chief strategy officer for professional service provider Deloitte in Asia-Pacific.

"The competition in China is very fierce. If you are in China and your business is sustainable and profitable, that means you can be competitive everywhere in the world. China is really the place that makes you 'fit'," Li said in an exclusive interview with China Daily.

According to the General Administration of Customs, foreign-invested enterprises with operations in China saw their total import and export value surge 16.1 percent year-on-year to 3.47 trillion yuan ($507.9 billion) in the first quarter. The trade value of those specializing in information technology, new materials and high-end equipment was up by 44.7 percent, 11.1 percent and 9.8 percent, respectively, which is in line with China's emphasis on new quality productive forces.

On the mounting uncertainties in the global market, Li said China is of irreplaceable strategic value to MNCs given its large market size, complete innovation ecosystem, rich talent supply, and above all, consistency in government policies.

The country's policy continuity and predictability, as exemplified by the 15th Five-Year Plan (2026-30), is fundamental to attracting long-term investment.

"Business leaders like predictability. When making fixed-asset investment decisions, they look at returns over 10 to 20 years, not just three to five years," he said.

China's support for solar, wind and electric vehicles can be cited as prime examples of consistent policymaking, which has cultivated global champions, according to Li.

Therefore, MNCs are confident of bringing in new investment into China, and showing strong interest in advanced manufacturing, semiconductor, and the full EV value chain covering batteries, software and autonomous driving.

According to the Ministry of Commerce, foreign direct investment in China's high-tech industries surged 20.4 percent year-on-year to 63.21 billion yuan in the first two months of this year, accounting for 39.2 percent of total inflows.

Foreign investors have shown equal inclination for the biotech and healthcare sectors following the relaxation of ownership restrictions in China, thus nurturing more international hospitals, digital therapy companies and pharmaceutical solutions providers, said Li.

Overseas commercial insurance companies are also actively looking for opportunities in China's silver economy, not only driven by the country's aging population, but also by rising affluence and growing health consciousness, he said.

MNCs are also drawn to the fact that many cutting-edge innovations have been developed in China in the areas of AI, advanced materials and biotech. This has nurtured the "DeepSeek" moment, and is likely to cultivate more of the kind. The mature ecosystem gradually built in China should take much of the credit for this, according to Li.

Companies are more devoted to innovation, spending nearly 3 percent of their annual sales revenue on R&D. The rich talent supply is another merit. Apart from the 12 million college graduates each year, China enjoys an experienced workforce in R&D, engineering, IT and management, Li said.

"When people have an idea, they can develop prototypes, scale up in industrial settings and access funding from a mix of government programs, private equity and venture capital in China. People with technology mindsets are free to test their ideas here, where they have the backbone for realizing the innovation and make themselves really productive," he said.

But MNCs are also facing rising competition in China, especially from domestic players. A "co-opetition" approach would be an optimal choice in such a context. Life sciences companies, for example, are licensing innovative drugs from Chinese biotech startups and helping them gain overseas market access. While Chinese companies are continuing their outbound reach, they need collaboration in other markets, where multinational companies have a leading position, Li added.

shijing@chinadaily.com.cn