Three in four multinational corporations (MNCs) operating in mainland China have maintained or increased their investments in 2025, according to a recent KPMG survey, despite Washington stepping up efforts to decouple from Beijing and its allies following suit.

The survey published on Monday, polling 137 senior executives from global companies operating 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.

MNCs were acquiring companies in high-performing sectors such as electric vehicles, medical technology, biotechnology, water technology, advanced materials and robotics to tap into global business potential, he said.The industrial manufacturing and automotive sectors are high on the growth list of multinational corporations. Photo: Xinhua

“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.