BEIJING, April 16 -- Foreign-funded research and development (R&D) centers have become a key part of China's innovation system, with many multinational companies upgrading their operations in the country from manufacturing bases to innovation hubs, the Ministry of Commerce said on Thursday.

Spokesperson He Yadong said at a regular press conference that foreign R&D centers in China are shifting from meeting local adaptation needs to serving as pivots for global innovation.

In 2025, actual foreign investment in China's scientific research and technical services sector made up nearly one-fifth of the national total, with its share rising steadily for seven straight years, the spokesperson added.

The sector saw the establishment of 14,000 new foreign-invested enterprises in 2025, up 27.2 percent year on year, the spokesperson said, adding that a number of multinational companies, including AstraZeneca, Philips and Porsche, have established R&D centers in China in recent years.

China has continued to strengthen policy support for foreign-funded R&D centers. A revised version of the Catalogue of Encouraged Industries for Foreign Investment, which took effect on Feb. 1 this year, added more items in areas such as the R&D of new drugs and digital creative technologies.

In February, a circular was issued to continue exempting eligible imported scientific and research supplies used by foreign-funded R&D centers from import tariffs, import value-added tax and consumption tax.

The spokesperson said that the ministry will work with relevant departments to attract more multinational companies to locate their R&D operations in China and help them leverage the country's complete industrial system, strong talent pool and rich application scenarios.

Multinational companies are encouraged to fully leverage their strengths and capabilities in China's green, digital and intelligent transformation, and to participate in the development opportunities the country offers.