Global firms turn to M&A in EVs and biotech to deepen China investment: KPMG

Group 1 - Three in four multinational corporations (MNCs) in mainland China have maintained or increased their investments in 2025, despite geopolitical tensions [1][2] - Only 1% of surveyed MNCs are preparing to exit the Chinese market, while about 20% may reduce investment [2] - Companies planning to expand are focusing on greenfield investments, mergers and acquisitions, or joint ventures to enhance their presence in China [2][4] Group 2 - There has been a significant increase in mergers and acquisitions among MNCs in China over the past six months, particularly in high-performing sectors [3][4] - MNCs are acquiring companies in sectors such as electric vehicles, medical technology, biotechnology, water technology, advanced materials, and robotics [4] - In consumer-facing sectors, MNCs are pursuing vertical integration by acquiring distributors and original equipment manufacturers to better serve Chinese consumers [5] Group 3 - Approximately 60% of MNCs have shifted their focus from growth to profitability in mainland China, with 83% localizing business aspects like manufacturing and supply chain [6] - MNCs express greater confidence in the Chinese economy compared to the global economy, with 64% showing at least moderate confidence in China's economic prospects over the next three to five years [7] - The highest confidence in China's economic growth prospects is found in the life sciences and healthcare sector at 70%, followed by industrial manufacturing, consumer and retail, and automotive sectors [8]