A recent phenomenon has emerged: Japanese and European enterprises are collectively engaging in "reverse operations," sending a clear signal.

Looking first at Japan’s moves, the Kansai Economic Federation recently coordinated a delegation of 80 people, planning a visit to China in October; meanwhile, the Japan Association of International Trade Promotion is reorganizing a new delegation set to depart in September; even more significantly, the Japan Business Federation has already dispatched a high-level advance team to China to scout ahead.

With over 36,000 Japanese companies operating in China—85% of which plan to maintain or expand their current operations—these frequent visits by economic groups essentially convey one message: China’s market is simply too important for Japanese businesses to afford losing.

It’s not just Japanese firms—European enterprises are also voting with their actions. For example, Danish pharmaceutical giant Novo Nordisk recently announced an additional RMB 200 million investment in Tianjin, with its CEO stating plainly: “No one can afford to ignore China and the innovation happening here.” In addition, GE Healthcare’s MR innovation center—the Eastern Hemisphere headquarters in Tianjin—is already operational, making it the only system-level MR research base outside the United States.

A survey by the China-Europe Chamber of Commerce shows that European business confidence in China is rebounding, with more and more companies upgrading China from a “sales market” to a “source of innovation.” After all, China offers a market of 1.4 billion people, a complete industrial chain, millions of university graduates annually, and a stable, predictable policy environment—features unmatched globally.

It’s not just production and R&D that are increasing investments—consumption is also adapting proactively. For instance, international giants like Estée Lauder, COACH, and BURBERRY used to rarely offer discounts in the domestic market. But now, to meet Chinese consumers’ rational demand, they’ve begun selling at discounted prices through brand outlet channels such as Outlets and VIP.com, offering products at 30%-50% off—this has attracted many young shoppers and helped expand their market share.

In short, with global volatility persisting, stability has become a scarce resource. The influx of foreign capital into China isn’t driven by herd mentality—it’s based on careful calculation. Who wouldn’t come if there’s money to be made? Nothing is more attractive than real, tangible returns.

Original source: toutiao.com/article/1871233509012808/

Disclaimer: The views expressed in this article are solely those of the author.