As many economies look to develop advanced manufacturing sectors and boost exports to address trade imbalances, attracting foreign investment presents a promising strategy. The first step in this process is to expand openness by providing a level playing field for foreign companies, fostering an environment that encourages long-term commitment from international investors.

　　For advanced economies, taking advantage of their established industrial bases to attract investment in emerging industries such as electric vehicles and renewable energy could be a beneficial approach. Developing economies might focus on utilizing their rapidly growing markets and competitive labor costs to attract manufacturing investments.

　　China, both a recipient and source of foreign investment, exemplifies this dynamic. In 2025, China"s outbound foreign direct investment totaled $174.38 billion, up 7.1 percent year-on-year. These investments create growth opportunities for manufacturing and exports in recipient economies and help establish complementary supply chains. Strengthening these supply chains and ensuring that Chinese investors are treated fairly can support local industries, boost export growth, and help address trade imbalances.

　　As economies navigate the complexities of globalization, the role of foreign investment in driving manufacturing and export growth warrants closer attention. While some advocate for protectionist policies to shield domestic markets and promote local industries, such measures may lead to a harmful cycle of economic isolation. In contrast, fostering an open environment that encourages foreign investment creates a more sustainable path for economic growth and global integration.