HEFEI - Eyeing opportunities emerging from the opening-up and upgrading of China's manufacturing sector, multinational companies gathered at a conference on Friday that was held as part of the ongoing 2024 World Manufacturing Convention in Hefei, the capital of East China's Anhui province.

Their discussions focused on how the country's advancements in manufacturing are opening doors for enhanced global cooperation and investment, signaling the industry's growing appeal to international investors.

The conference was a key event at the convention, attracting 178 political and business leaders from 19 countries and regions, including representatives of 92 Fortune 500 and multinational companies.

"The coordinated digital and green transformation of traditional manufacturing is an inherent requirement for the development of new quality productive forces, and it has created new advantages for China's high-quality economic growth. This new model aligns closely with Honeywell's strategic objectives," William Yu, president of Honeywell China, said at the conference.

With over 50 years of expertise in industrial automation, the US multinational has steadily increased its investment in China in recent years. Its focus spans key sectors such as automation, energy transformation and aviation.

In July, Honeywell China signed a strategic cooperation agreement with BBCA Group to develop sustainable aviation fuel and other initiatives in the city of Bengbu in Anhui, aiming to support green and low-carbon development.

Honeywell is among a growing number of foreign companies expanding their investment in the world's second-largest economy, driven by rising optimism about China's economic outlook and recognition of the high-level opening-up of its manufacturing sector.

According to China's Ministry of Commerce, a total of 36,968 new foreign-invested firms were established across China in the first eight months of 2024 -- an increase of 11.5 percent year-on-year.

During the period, foreign direct investment (FDI) in the Chinese mainland, in actual use, totaled 580.2 billion yuan ($82.1 billion). The high-tech manufacturing sector attracted 12.4 percent, or 72.1 billion yuan, of the total FDI inflow, which was up 1.9 percentage points from the same period last year.

Additionally, China's top economic planner announced earlier this month that restrictions on foreign investment in the manufacturing sector would be lifted.

"This policy not only demonstrates China's positive willingness to expand international cooperation but also boosts the confidence of foreign-funded enterprises in continuously deepening their presence in the Chinese market," said Tamai Takeshi, deputy general manager of Mitsubishi Electric (China) Co Ltd.

As China accelerates its development of new quality productive forces and sustainable manufacturing, foreign enterprises are increasingly viewing these advancements as tangible opportunities. And integrating into China's manufacturing upgrade has become a trend among international investors.

"The Chinese market is developing at its own drumbeat. With a strong focus on the needs of the Chinese customers, Volkswagen is going for 100 percent 'in China for China' through a fully fledged local R&D center and strong local partnerships," said Thomas Ulbrich, chief technology officer of Volkswagen Group China.

By streamlining its R&D processes and granting more local decision-making authority, Volkswagen aims to reduce its time-to-market by 30 percent, Ulbrich said, speaking about the company's development plans for the Chinese market over the next few years at the conference.

According to the German Chamber's Innovation Report 2024, which was released this month, German companies in China are doubling down on their localization of innovation to increase competitiveness and utilize China as an innovation hub for global markets to a greater extent.

"German companies are investing in local innovation and strategic partnerships with customers and suppliers to stay competitive in an intense and dynamic market environment," said Martin Klose, executive director and board member of the German Chamber of Commerce in South & Southwest China.

"Foreign investment in China's emerging industries will promote the cross-border flow of capital, talent and technology, as well as international exchange in science and technology. This will help foster deeper open and innovative ecosystems in China, unlocking the country's economic development potential further," said Liu Qiao, dean of the Guanghua School of Management at Peking University.