British pharmaceutical giant AstraZeneca Thursday announced a record Sh1.935 trillion investment in China through 2030 to expand its manufacturing and research operations.
The move, unveiled during UK Prime Minister Keir Starmer’s trip to Beijing, reaffirms China’s growing role in global health innovation and AstraZeneca’s commitment to deepening ties in its second-largest market.
"China, has become a critical contributor to scientific innovation, advanced manufacturing, and global public health," AstraZeneca Chief Executive, Pascal Soriot said in a statement highlighting the strategic importance of the Asian market.
China ranks as AstraZeneca’s second-largest market after the United States, reassuring the company’s ambition to strengthen its presence in the region.
“This will be our largest investment in China to date,” a company spokesperson confirmed at the Great Hall of the People in Beijing, where the announcement was made.
The investment signals a deepening partnership that will support expansion of AstraZeneca’s research and development centers and boost production capabilities.
Starmer’s visit marks the first by a British prime minister to China since 2018, and is part of a broader effort by Western leaders to engage more closely with Beijing amid geopolitical shifts and uncertainties linked to US-China relations.
The UK prime minister emphasized the economic potential of the deal, saying, "AstraZeneca's expansion and leadership in China will help the British manufacturer continue to grow, supporting thousands of UK jobs."
"Unlocking opportunities for British businesses across the globe, is always the driving force behind my international engagements," Starmer added, reinforcing the government’s commitment to supporting international trade and investment.
AstraZeneca’s growing engagement in China follows a previous announcement in 2024 to invest Sh322.5 billion over five years in a strategic research and development center.
This came amid a sensitive period when the company’s former China president, Leon Wang, was detained amid an investigation into suspected illegal data collection and drug importation practices.
The company has maintained a presence in China for over three decades, building a foundation for future growth through research innovation and manufacturing expansion.
In parallel, AstraZeneca has been increasing its footprint in the United States, aiming for the US to represent half its global revenue by 2030.
The company plans to invest Sh6.45 trillion in US manufacturing and research operations over the coming decade.
It will also begin trading its shares on the New York Stock Exchange in February, while keeping its headquarters in the UK and its primary listing on London’s FTSE 100 index.
This strategic shift comes after the US government exempted British pharmaceuticals from import tariffs last December under a unique deal that requires increased UK spending on some medicines, including American treatments.
The White House also delayed tariffs on AstraZeneca for three years after the company agreed to expand its manufacturing capacity in the US.
The pharmaceutical industry remains a key target for tariff negotiations amid ongoing pressure from US policymakers to encourage companies to shift operations to domestic soil.
AstraZeneca’s dual investment strategy reaffirms its ambition to balance growth between China and the US, reinforcing its global manufacturing and research leadership amid a complex geopolitical landscape.
