Lujiazui Photo:VCG

The second phase of the expansion project of Michelin's Shanghai plant was officially put into production on Friday, with a total investment of 3 billion yuan (430.2 million), the French tire giant announced via its WeChat account on Friday.

According to the company, Michelin's "future factory" has taken root first in China, with the first high-performance green tire successfully rolling off the production line. As China's mobility sector undergoes electrification, intelligentization, and premiumization upgrades, this project focuses on 18-24 inch high-performance large-size passenger car tires, with approximately 70 percent of its capacity dedicated to serving new-energy vehicle models, said the company.

Ye Fei, president and CEO, Michelin Great China and Mongolia, was quoted as saying in a report of thepaper.cn on Friday that the high-quality development of the Chinese automotive market and the continuously optimizing policy environment enable companies to achieve "great things." 

According to the report, Ye added that particularly in terms of industrial chain collaboration, foreign enterprises can deeply participate in the globalization process of China's automotive industry. For example, by leveraging China's complete industrial chain, they can jointly develop products tailored to the Chinese market and then extend them to products suited for global markets, which helps Chinese automobiles go global while simultaneously elevating their own global value.

The official commissioning of the project marks an important milestone for Michelin's continued deep commitment to China and its deepened cooperation with local governments and industry partners, Ye said, noting that this is not merely an upgrade in manufacturing capabilities; it more profoundly reflects the company's long-term commitment to promoting high-quality development, green transformation, and industrial collaboration in China, per the report.

The expansion project of Michelin came as more foreign firms tapped into the Chinese market, as they found more development opportunities in the country. 

For instance, the expansion project of Schneider Electric's industrial park in Yizhuang, Beijing and the construction of the new industrial park in Wuxi, East China's Jiangsu Province are nearing completion, while the new industrial park in Xiamen, East China's Fujian Province is scheduled to be established in 2026. China is the only country in the world where Schneider Electric possesses full business line R&D capabilities, and these developments will further strengthen Schneider Electric's overall presence and layout in China, the People's Daily Overseas Edition reported on January 7, 2026.

According to a report released by KPMG in November 2025, 67 percent of surveyed multinational companies are at least moderately confident in their three-to-five-year growth prospects in China, while 94 percent of them are still investing in the Chinese market.

Data from China's Ministry of Commerce showed on Friday that China saw 70,392 newly established foreign-invested enterprises in 2025, a year-on-year increase of 19.1 percent.

Actual utilized foreign investment in manufacturing reached 185.5 billion yuan, while in services it amounted to 545.1 billion yuan. In high-tech industries, actual utilized foreign investment totaled 241.8 billion yuan. E-commerce services grew by 75 percent, with medical instruments, equipment, and devices manufacturing up 42.1 percent, and aerospace vehicles and equipment manufacturing by 22.9 percent, according to the ministry.


Global Times