Multinationals ready to embrace new opportunities in Chinese market
As China saw its economy begin the year on a solid note and press ahead with policies to maintain sound development, multinationals are ready to take the pulse of the Chinese market, as well as growth drivers generated from innovation.
Business prospects
At the China Development Forum (CDF) 2024, an annual high-level international conference, held from Sunday to Monday, leaders of multinationals expressed their confidence in the economy and businesses prospects in China.
“L’Oreal will continue to invest in China as we believe that investing in China is investing in the future,” said Nicolas Hieronimus, chief executive officer (CEO) of the France-based cosmetic giant, adding that the CDF reflects China’s determination to embrace a new era of high-quality development.
Themed “The Continuous Development of China,” the forum attracted about 400 delegates, including business leaders, scholars, and representatives from international organizations keen to exchange ideas, and officials from the Chinese central government’s departments who introduced China’s policy at the forum.
Firm steps, bright outlook
Milind Pant, CEO of Amway Corp., said China has been the company’s largest, fastest growing and most important strategic market for over 20 years. Amway China has seen a sales growth of 7 percent annually on average over the past three years, said Pant, adding that Amway will continue to invest in China.
“China’s advantage presented by complete industry chains and innovative ecosystems are now widely recognized and highly regarded by multinationals,” he said.
The company is also a witness to and beneficiary of China’s opening-up policy. The country has taken steps such as shortening the negative list for foreign investment, setting up some pilot free trade zones, and implementing the Foreign Investment Law.
Action plan
China issued an action plan to further attract and utilise foreign investment earlier this month, proposing 24 measures across five aspects, such as expanding market access, facilitating the flow of innovation factors, as well as better aligning domestic rules with highstandard international economic and trade rules.
Kim Fausing, president and CEO of Danfoss, a leading Danish energy efficiency solution company, said China’s reaffirmed pledge to further opening-up and improvements to the business environment, especially the protection of intellectual property rights, gives them strong confidence to continue investing in the country.
In April, Danfoss will launch the construction of the second phase of their Haiyan campus in Zhejiang Province, east China, which is also its largest manufacturing base in China.
Pascal Soriot, CEO of British biopharmaceutical giant AstraZeneca, said the company had been in China for over 30 years and noted that it had become its important growth engine by revenue.
“China is absolutely critical for the world growth. If China doesn’t grow, the world is not growing,” said Antoine de Saint-Affrique, CEO of Danone, a food and beverage multinational.