Bangladesh, Nov. 14 -- For decades, multinational corporations viewed China primarily as a manufacturing base, a vast consumer market and a destination for foreign investment. That perception, however, is undergoing a fundamental transformation. Increasingly, international companies are discovering that China offers something far more valuable than production capacity and commercial opportunities: an innovation ecosystem that strengthens their technological capabilities, sharpens their competitiveness and prepares them for the next phase of global expansion.

Recent developments involving German automotive giant Volkswagen and US financial institution Citigroup illustrate this changing relationship. In October, Volkswagens new-energy vehi...