75% of Multinationals Maintain or Boost China Investment, Defying Decoupling Pressure: KPMG Report
A new KPMG report finds three in four multinational corporations in China maintained or increased investment in 2025, despite mounting political pressure from Washington to decouple.
Three in four multinational corporations (MNCs) operating in mainland China have either maintained or increased their investments in 2025, a stark contrast to the intensifying decoupling efforts led by Washington and its allies. According to a new survey from KPMG, the data suggests that despite geopolitical headwinds, global firms remain committed to the world's second-largest economy.
The Data Behind the Strategy
The report, published on Monday, polled 137 senior executives from global companies between June and September. It revealed that 75% of respondents maintained or increased their investments for 2025. Conversely, only 1% reported that they were preparing to exit the China market. While about 20% of companies did reduce their investment, this appears to be a strategic adjustment rather than a full-scale retreat.
Geopolitical Rhetoric vs. Economic Reality
These findings present a challenge to the political narrative pushed by Washington, which has been urging allies to reduce their economic reliance on Beijing through supply chain diversification and technology controls. It's clear that for many corporations, the sheer scale of the Chinese consumer market and its integrated supply chains present an economic reality that's hard to ignore.
The decisions reflect a calculated risk assessment by corporate leaders. Rather than full decoupling, many firms seem to be pursuing a 'China Plus One' strategy—maintaining their core operations in China while diversifying parts of their production to other countries to mitigate risk. This indicates a more nuanced, pragmatic approach than the binary choice often presented in political discourse.
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