Economic relations between Türkiye and China have expanded considerably over the past three decades, evolving beyond trade to encompass mutual investment. While Chinese investments in Türkiye have typically drawn more attention, Turkish capital flowing into China has also steadily increased. Although Turkish investments remain less diversified and extensive than their Chinese counterparts, several Turkish companies have made notable contributions across multiple sectors. Nevertheless, China’s vast consumer base and industrial ecosystem have long been seen as a strategic target for Turkish businesses seeking to enhance their global reach. Early initiatives focused on textiles and light manufacturing, while more recent ventures have shifted toward energy, food services, and consumer goods. This growing interest in the Chinese market has translated into a significant surge in bilateral trade, demonstrating the tangible outcomes of this deepening economic engagement.
Notably, bilateral trade surged from $1 billion in 2001 to over $44.9 billion in 2024, with China becoming Türkiye’s largest import partner. However, the trade imbalance remains significantly in China’s favor. In response, Turkish policymakers and business leaders are striving for a more balanced relationship by encouraging Turkish firms to establish a presence in China. With institutional support and evolving bilateral frameworks, Turkish capital is becoming a growing feature of China’s international investment landscape. Turkish investments in China span a variety of sectors, often mirroring the strengths of Türkiye’s leading conglomerates. Early forays began in the 1990s, and the 2000s saw a rise in industrial ventures. More recently, consumer-driven and service sectors have gained prominence. Underpinning this increasing flow of Turkish investment and the pursuit of stronger economic ties are formal structures designed to facilitate cooperation between the two nations.
Formal mechanisms to promote Sino-Turkish business cooperation date back over three decades. The Türkiye–China Business Council was established in 1992 under the Foreign Economic Relations Board of Türkiye (DEİK) to foster bilateral trade and investment ties. Operated in partnership with China’s Council for the Promotion of International Trade (CCPIT), this council convenes regularly to connect businesses and facilitate dialogue. It has gained an important position in both countries’ business communities through meetings, networking events, and high-level visits. The Business Council not only organizes bilateral business conferences and sectoral workshops but also accompanies top-level state visits. For instance, delegations of Turkish business leaders joined official visits to China by President Süleyman Demirel in 1995 and Prime Minister Recep Tayyip Erdoğan in 2012, facilitating contacts in cities from Beijing to Urumqi. Such missions help introduce Turkish investors to Chinese counterparts and keep momentum in commercial relations.
The aforementioned Türkiye-China Business Council has contributed to key agreements such as the 1996 Double Taxation Avoidance Treaty and the 2015 Agreement on Reciprocal Promotion and Protection of Investments. These instruments aim to reduce tax burdens, safeguard investor rights, and promote regulatory cooperation. The Council also supports Turkish firms in navigating bureaucratic and operational barriers and currently oversees sectoral committees in energy, construction, tourism, textiles, agriculture, and finance. Furthermore, DEİK partnered with Türkiye’s Industry and Business Association (TÜSİAD) to form a research group on enhancing exports to China. This reflects Ankara’s broader “Asia Anew” initiative, encouraging Turkish firms to explore Asian markets. Through these institutional efforts, a framework has been set for Turkish companies to invest in China, leveraging official support and insights into the Chinese business environment. Capitalizing on this supportive framework, several pioneering Turkish enterprises have ventured into China, establishing operations across diverse sectors.
Turkish industrial firms have pursued opportunities in China’s manufacturing heartland, both to tap local demand and to integrate into global supply chains. A standout example is Aksa Power Generation (part of Kazancı Holding), which entered China in 2007. Aksa had established what was reported as the world’s largest generator factory in Changzhou, spanning 100,000 square meters. This facility, one of Aksa’s three plants in China, boosted its capacity to 24,000 generators per year and deepened its integration into China’s vast electronics and machinery supply network. The investment, totaling around $50 million by 2012, positioned Aksa among the top generator suppliers in China, demonstrating how a Turkish energy-equipment firm can achieve scale in the Chinese market. While Aksa represents a success story in Chinese manufacturing, other Turkish industrial ventures have faced a more challenging landscape.
Another significant player is Kordsa, the tire and rubber reinforcement subsidiary of Sabancı Holding. Kordsa expanded into China in 2006 by acquiring 99.5% of a nylon cord manufacturing facility in Qingdao. This move aimed to serve China’s booming automotive sector by supplying tire cord fabric. The acquired plant (originally part of the U.S.-based Invista group) had an annual turnover of about $20 million. However, the venture illustrates the challenges of operating in China’s competitive industrial landscape: Kordsa’s Chinese operations were discontinued in 2013. Factors likely included market overcapacity and strong local competition, underscoring that success in China often requires persistent adaptation.
In the heavy engineering field, Türkiye’s construction and fabrication giant ENKA made an early investment through its subsidiary Çimtaş. In 2002, Çimtaş opened a steel fabrication factory in Ningbo, specializing in structural steel components and piping for power plants and industrial projects. The facility, located in an export-processing zone, occupies 27,000 square meters and can produce 20,000 tons of steel components annually. This investment enabled ENKA to supply projects in Asia and beyond more competitively, leveraging China’s manufacturing base. Similarly, Ünsa Ambalaj, a Turkish packaging firm, established a factory in Hangzhou in 2006 to produce industrial-grade sacks for the chemical, food, and mining sectors. By producing in China, Ünsa aimed to be closer to raw materials and clients in the Asia-Pacific region.
Traditional Turkish manufacturing companies have also built a presence. For instance, Şişecam, Türkiye’s glass and chemicals leader (founded during the early Republic era), set up a trading company in Shanghai in 2003. Through Şişecam Shanghai Trading Co., the company distributes chemicals and glass products in the Chinese market, while also sourcing raw materials. This reflects a strategy of establishing on-the-ground commercial operations without heavy capital investment in production. In sum, energy and industrial investments by Turkish firms in China have been driven by a mix of ambition and pragmatism: building factories or offices to integrate into China’s supply chain and serve local demand, but also learning to navigate formidable competition. Some ventures, like Aksa’s, have thrived, while others, like Kordsa’s, proved short-lived, offering valuable lessons for future investors.
In the food sector, Turkish entrepreneurs have achieved one of the most prominent success stories of Turkish capital in China. TFI TAB Gıda Investments, part of Ata Holding, is the master franchisee for Burger King in China and Türkiye. It began its China operations in 2012 with the ambitious rollout of Burger King restaurants nationwide. Within a decade, TFI TAB Gıda grew Burger King China from an initial 64 outlets to nearly 1,500 outlets across 188 cities. The company has invested roughly $500 million in its Chinese franchise network and now employs about 30,000 people in China – making it one of Türkiye’s largest direct investments abroad by both expenditure and headcount. The Chinese arm of Burger King, operated by the Turkish franchisee, even weathered pandemic-related slowdowns and resumed rapid expansion, with plans to open 200 new stores annually from 2023. In addition to Burger King, TAB Gıda has also added the fried-chicken chain Popeyes to its China portfolio. This move leverages TFI’s operational expertise to cater to Chinese consumers’ growing appetite for international fast food options. The success of Ata Holding’s food venture in China underscores how Turkish firms can capitalize on strong global brands and localize them effectively in an emerging market.
Moreover, the holding mentioned above exports a substantial volume of processed potatoes from its factory in Türkiye to China monthly. Additionally, to provide digital services to over 1,500 restaurants across China, ATA Holding established the ATP China Office in Shanghai in 2014. Comprised of a 45-person team, the ATP China Office develops corporate applications focused on fast-food restaurant services through its self-developed software and technological solutions. Additionally, to expand its operations in China, ATA Holding signed an agreement in July 2023 with the Bank of China, one of the country’s largest state-owned banks. Within the framework of this agreement, the Turkish holding will leverage the bank’s financial resources for its commercial operations in China.
When it comes to agriculture and food production, direct Turkish investment in China has been more limited, often focusing on trade rather than local farming. Nonetheless, increasing market access is enabling Turkish agricultural products to reach Chinese consumers, hinting at future investment prospects. For example, China in recent years opened its market to Turkish dairy, poultry, and fruits, leading Turkish agribusinesses to eye China for export growth. These developments have spurred collaborative efforts like the DEİK-TÜSİAD task force to boost Türkiye’s food exports to China. While Turkish companies have not yet invested in farming processing facilities within China, they are building distribution networks and partnerships. One niche investment bridging agriculture and luxury retail is the Turkish clothing brand Silk & Cashmere. The Istanbul-based Fabeks Co. has sourced raw cashmere from China’s Inner Mongolia province and produced high-end silk and cashmere garments since 1993. By operating on Chinese soil, Silk & Cashmere secures quality materials straight from the source – the cashmere goats of Inner Mongolia – and benefits from local textile craftsmanship before exporting finished products.
Speaking of the food sector, Türkey’s Akman Holding made its initial entry into the Chinese market in 2000 through its subsidiary Ersu Meyve ve Gıda Sanayi A.Ş., which signed a cooperation agreement with the China Development and Investment Corporation. As part of the deal, the company acquired a 40 percent stake in the Chinese firm Hancheng Zhonglu Fruit Juice Co. Ltd. However, in 2002, Akman Holding sold its shares in the joint venture. Subsequently, in 2004, another company under Akman Holding’s fruit juice division, Golden Meyve Suyu ve Gıda Sanayi A.Ş., signed a new cooperation agreement with China’s Yantai Legend Beverage and Food Co. Ltd. Under this agreement, the joint venture began producing fruit juice, fruit juice concentrate, fruit puree, and bottled drinking water. In addition, Kütaş A.Ş., a food-sector company under Türkey’s Gürel Group, established a garlic processing facility in China with a $10 million investment. The company subsequently began exporting garlic to European and Japanese markets.
Turkish investments in China’s consumer goods and retail sectors have been spearheaded by companies looking to tap the country’s enormous consumer base and retail infrastructure. A prominent case is Arçelik A.Ş., Türkiye’s leading appliance manufacturer (part of Koç Holding). Arçelik entered China in 2007 under its global brand Beko, acquiring a local white goods factory for 8 million USD to produce washing machines in Changzhou. This acquisition gave Arçelik a manufacturing foothold in China’s competitive home appliance market. For over a decade, Beko-branded refrigerators and washers rolled off the Changzhou assembly line, demonstrating Turkish manufacturing capability on Chinese soil. However, by 2020 Arçelik recalibrated its strategy: it sold the Changzhou production facility to a Chinese company (Jiangsu Konka) for 15.5 million USD and ceased local manufacturing. Instead, Arçelik chose to continue in China through sales and marketing operations, importing its products or manufacturing in lower-cost locations. The pivot suggests that while China offers scale, it also demands efficiency; Arçelik likely found it more viable to serve China without owning a factory there in the long run. Despite this, Arçelik maintains a presence via its sales offices and a global sourcing center in Shenzhen, indicating that China remains a key market and supply hub for the company. Another leading electrical home appliances brand of Türkiye that has invested in China is Arzum. As one of the major manufacturers of electrical household appliances, Arzum established Arzum Shanghai Limited in Shanghai in 2023 with an initial investment of $100,000.
In the retail and real estate domain, Fiba Group – a Turkish conglomerate with interests in banking and retail – made a noteworthy investment by co-developing a major shopping mall in China. In partnership with Turk Mall (a Turkish retail developer), Fiba invested approximately $200 million to build Star Mall Shenyang in China’s northeast. Opened in 2014, this expansive mall covers 330,000 square meters and houses some 230 stores along with dining and entertainment facilities. The venture into Chinese real estate was bold: it signaled confidence that a Turkish developer could design and operate a commercial center in a highly competitive retail market. By attracting international and local tenants, the Shenyang project aimed to benefit from Chinese consumers’ growing spending power. Its success would encourage other Turkish investors to consider China’s retail property sector, though it also required understanding local consumer habits and regulatory nuances.
Beyond these large-scale retail developments, Turkish consumer brands have gradually entered China, primarily through exports and e-commerce. Fashion retailers and cosmetic brands from Türkiye have participated in Chinese trade fairs and online marketplaces. For example, Silk & Cashmere, mentioned above, not only produces in China but also retails luxury scarves and sweaters to Chinese customers, blending Turkish design with Chinese materials. Additionally, Turkish-owned global brands like Godiva Chocolatier (acquired by Türkiye’s Yıldız Holding in 2008) have expanded store networks in China under their international branding, indirectly reflecting Turkish capital presence in the high-end consumer market. While these retail ventures operate under well-known global names, the underlying investments and management expertise often be traced back to Istanbul.
One of the industries aiming to gain a share of the Chinese market is Türkiye’s furniture producers. Although Turkish furniture companies are not engaged in any form of manufacturing within China’s domestic market, they regularly showcase their products by participating in the China International Furniture Fair held annually in Shanghai and Guangzhou. Organized by the Istanbul-based Furniture, Paper and Forestry Products’ Exporter Association, 18 Turkish furniture brands took part in the fair for the 14th time in March 2024. The Furniture Industry Businessmen Association (MOBSAD) is also among the active participants in international events related to China’s furniture industry. Accordingly, MOBSAD currently exports furniture products worth $100 million to China.
Turkish restaurants represent another visible sign of Türkiye’s commercial presence in China. They can be found in major Chinese cities like Beijing, Shanghai, Guangzhou, Chengdu and Xi’an. Cities with smaller Turkish communities also host at least one Turkish-owned dining establishment. Notably, global Turkish chains like MADO have established outlets in commercial hubs such as Guangzhou and Yiwu. On top of that, MADO has announced plans to open 1,000 outlets across China over the next five years.
The evolving presence of Turkish capital in China reflects a strategic expansion aligned with Ankara’s pivot toward Asia. Turkish companies are leveraging their expertise in energy, food, manufacturing, and retail to carve out niches in a highly competitive market. Some ventures, like TAB Gıda and Aksa, highlight scalable success; others offer cautionary tales that underline the need for adaptability and market fit. Institutional frameworks such as DEİK, the Türkiye-China Business Council, and public-private initiatives have facilitated Turkish investment by reducing regulatory friction and enhancing bilateral understanding. While challenges remain—including market saturation, regulatory barriers, and global economic uncertainties—the trajectory of Turkish investment in China is one of cautious but growing engagement. Prospects lie in high-value sectors such as technology, green energy, logistics, and finance. As both nations deepen economic ties, Turkish firms are poised to play a larger role in China’s dynamic market landscape.
Vusal Guliyev is a Sinologist and Policy Analyst specializing in the geopolitical affairs of Eurasia and the Asia-Pacific region. He works as a Policy Advisor at the Baku-based Center of Analysis of International Relations and is the Head of the Shanghai Office at AZEGLOB Consulting Group. He is also affiliated with the Topchubashov Center as an Associate Expert, a global policy think tank where he writes extensively on East Asian and Indo-Pacific affairs.
