MNC China Outlook Report - Insights from KPMG

Throwback: MNC China Outlook Report - Insights from KPMG

On January 13, we had the pleasure of hosting a conference featuring Mark Harrison, Partner and Co-head of Multinational Clients at KPMG China, who shared key insights from KPMG China’s inaugural MNC China Outlook Report.

Based on a survey of 137 China-based executives from multinational companies (MNCs) operating in China, the report provides a comprehensive overview of how international companies are navigating an increasingly complex and competitive market environment. Against the backdrop of deepening localisation, intensifying competition, and the rapid development of digitalisation and artificial intelligence, the study sheds light on both current sentiment and medium-term strategic adjustments among MNCs in China.

Key Takeaways from the Report

• During the session, Mark Harrison highlighted several important findings:
  Short-term caution, long-term commitment: While many MNCs remain cautious in the near term due to global and domestic uncertainties, their long-term commitment to the Chinese market remains strong.
• Relative optimism toward China: Respondents expressed a more positive outlook for the Chinese economy compared to the global economic environment.
• Sustained investment momentum: A majority of surveyed MNCs either maintained or increased their investment in Mainland China in 2025, with nearly all companies continuing to invest despite market challenges.

Strategic Shifts and Operational Adjustments

The presentation also explored how multinational companies are adapting their strategies to remain competitive. Topics included:

• Growth and revenue outlooks in both the short and medium term, with differentiated insights by sector and by the location of company headquarters.
• Investment trends and evolving operational models, reflecting stronger localisation strategies, supply chain adjustments, and digital transformation initiatives.
• The growing role of technology, data, and AI in supporting decision-making and operational efficiency.

Engaging Discussion and Q&A

The session concluded with an open Q&A, allowing participants to engage directly with Mark Harrison on topics ranging from investment confidence and regulatory considerations to sector-specific challenges and opportunities.

This event provided valuable perspectives for multinational companies seeking to better understand China’s evolving business landscape and reaffirmed the market’s strategic importance for long-term growth.