China's economy gains momentum with retail growth and foreign investment in 2026
China's economy showed steady growth in early 2026, with retail sales of consumer goods rising by 2.8 percent year-on-year in January and February. The annual China Development Forum (CDF) 2026 also opened in Beijing on Sunday, drawing nearly 100 senior executives from multinational companies eager to explore new opportunities.
The country's consumer market received a boost from a government-backed trade-in programme, which supported over 2.6 trillion yuan in sales last year. This initiative benefited more than 360 million people, reinforcing confidence in domestic spending.
Foreign businesses continue to see China as a vital market. TCP Group, a Thai enterprise operating in the country for over 30 years, has invested 4.36 billion yuan ($630 million) since 2020. In 2025 alone, the company opened a new production base in Guangxi and expanded its facility in Sichuan Province. The group's CEO highlighted China's institutional openness and unified market as key factors driving foreign investment. Other global firms also expressed optimism. Tapestry International, a US-based fashion and luxury company, described the Chinese market as highly attractive with strong growth potential. Representatives from food, retail, and consulting sectors similarly anticipated further expansion during the 15th Five-Year Plan (2026-30). Meanwhile, China's services sectors—including hospitality, healthcare, and digital services—are expected to grow and attract more foreign investment in the coming years.
With retail growth, policy support, and continued foreign investment, China's economic outlook remains positive. The country's focus on expanding openness and strengthening its national market is likely to sustain business confidence in the long term.
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