Consumer sector prospects upbeat
Editor's Note: Despite global uncertainties and the economic downturn caused by the COVID-19 outbreak, China is on track to embrace the dual-circulation development pattern as it enters the 14th Five-Year Plan period (2021-25) in 2021, which also marks the 100th anniversary of the founding of the Communist Party of China.
China Daily spoke to senior executives from multinational corporations to get their views on the overall macroeconomic environment, potential business opportunities, and how China can play a key role in shaping the trajectory of global growth.
Q1: How important have your China operations been in your overall performance in 2020?
Q2: China’s new dual-circulation development pattern emphasizes on boosting domestic demand and further opening up the domestic market. How will your company utilize this policy to expand your presence and investment in China?
Q3: Which policy aspect in the government’s “Six Safeguards and Six Priorities” directive has emerged as most conducive to your development in China amid the global economic uncertainties?
Q4: What are your views on China’s highly centralized but people-oriented economic development model? Do you think China’s policies to quickly and effectively restore business activities and safeguard people’s livelihood have helped your business recovery in China and contributed to the recovery of the global economy and industrial chains?
Q5: What’s your take on Beijing’s stance that China has entered a “new development stage”? How would such a proposition bring changes to your China strategy?
Q6: What aspects of China’s 14th Five-Year Plan and the country’s 2035 long-term development goal are you most looking forward to, and how will your company adapt its strategy according to the country’s future growth paradigm?
A1
Our business in China accounts for about a quarter of Panasonic’s global business scale, and the Chinese market is the most important overseas market for Panasonic. Against the backdrop of the COVID-19 pandemic and the global economic downturn, revenue from the Chinese market increased 4 percent in the second quarter of last year, compared with the same period in 2019, and rose 2 percent year-on-year in the third quarter.
A2
For the new dual-circulation development pattern, Panasonic attaches great importance to the new development opportunities underpinned by the “non-contact economy”, and will also be committed to providing new proposals for clean concepts for people’s daily lives after the pandemic, hoping to contribute to the internal circulation in terms of health, eldercare, cleanliness and non-contact cold chains.
A3
Panasonic was able to quickly resume work and production in China, reaching a resumption rate of 100 percent in mid-March under the guidance of safeguarding foreign investment in the “Six Safeguards and Six Priorities” policy. During the difficult period of international personnel exchanges, the government actively coordinated business personnel coming to China and provided convenience for foreign companies in China, which also helped Panasonic’s business in China proceed smoothly.
A4
The Chinese government has taken strong epidemic prevention and control measures during the epidemic and provided support for enterprises after the resumption of work and production. Panasonic expresses its sincere thanks for this. After we resumed work and production in China, no one was infected. This is the result of strong support from the central and local governments.
A5
In the new stage of development, people’s living standards will be further improved, which will also make more people pay attention to high-quality, convenient and healthy lifestyles. Panasonic is committed to providing the public with healthy and safe integrated smart home appliances and services. At the same time, Panasonic will focus on health, eldercare and fresh food supply chains to make contributions to people’s well-being.
A6
China’s 14th Five-Year Plan and its long-term development goals for 2035 are guidelines for China’s economic and social development in the next five years and beyond. It also clarifies the further promotion of the dual-circulation development pattern, which is of great significance for Panasonic to continue to deepen its business in China.
A1
Last year, we accomplished our goals for the Chinese market despite various challenges brought by the COVID-19 pandemic. We earned more local customers and partners, and expanded our market share in China. The positive results of last year were primarily due to our active transformation toward cloud computing. The company’s steady growth in China allows us to deal with difficulties and challenges and consolidate our position in the global market.
A2
We see the dual-circulation policy as an opportunity for us. The Chinese government attaches importance to expanding domestic demand, which means a larger market for enterprises that operate in China including Avaya. We would like to work closely with more local IT vendors and introduce our world-class offerings and the latest technologies to our Chinese customers. We will also help Chinese IT companies to develop business in the global market.
A3
Avaya’s “In China, For China” promise is in line with the government’s efforts to ensure “Six Priorities” and stability in six areas, which encourage us to invest in the Chinese market and give us space to grow. Apart from the world-class technologies and solutions that we introduced, we expect that our further engagement with China’s economic development will bring more jobs and business opportunities in China.
A4
China’s macroeconomic policies place investment, consumption, employment and people’s livelihood at the core. This empowers sustainable economic development. Thanks to China’s quick recovery, Avaya’s local business avoided a great loss, and obtained new development opportunities. For example, during the pandemic, a number of Chinese companies sought Avaya’s help for remote collaboration to protect their employees and ensure business continuity.
A5
China could be and should be a contributor to the global technology arena. Avaya would like to give more input to drive technology innovations and bridge China and the world by accelerating technology exchanges between both sides.
A6
The 14th Five-Year Plan and the 2035 long-term development goal outlined innovation as one of the keywords, among others. It is definitely positive news for Avaya and other foreign companies which operate in China. We will try to integrate China’s needs into our strategies and efforts and adapt ourselves in several ways by accelerating our localization push, improving our strategies in innovations, helping our enterprise customers with their digital transformations and introducing our cutting-edge technologies to new infrastructure projects.
A1
TE Connectivity has been rooted in China for more than 30 years. China is one of the most dynamic and strategic markets for TE worldwide. In the past fiscal year, our strong business performance in China has contributed to TE’s global performance. In 2020, TE increased its registered capital in China by 120 million yuan ($18.48 million) to further its development in the country.
A2
TE sees huge potential in the country’s industrial and consumption upgrades, with both being engines behind high-quality economic development in China.
When the country upgrades its advanced manufacturing capabilities, China requires more efficient, reliable and smart connectivity and sensor solutions. Consumption upgrades will lead to increasing demand in healthcare, consumer electronics, new energy vehicles and smart home appliances. Premium industrial products — such as new energy vehicles and smart home appliances — provide a strong foundation for the country to boost domestic market expansion, and they also bring about huge opportunities for companies like TE.
A3
One notable guidance in the “Six Safeguards and Six Priorities” is to ensure stability in investment with a focus on “New Infrastructure” initiatives.
According to the National Development and Reform Commission, New Infrastructure is focused on seven areas, which TE has categorized into two main groups — the iterative upgrade of traditional infrastructure and the massive rolling out of digital infrastructure.
A6
The commitment of China to pursuing longterm development in a sustainable manner is something that we strive to achieve in common.
We are committed to supporting sustainability efforts in two ways. First, TE is committed to embedding sustainability into our daily operations with the goal of “decreasing waste disposed” and “35 percent + reduction in greenhouse gas emissions” by 2030 globally.
Our China operations will play an indispensable role in this commitment. Second, we continue to co-create with our customers on sustainable solutions and technologies. We will keep enabling innovations in new energy vehicles, renewable energy and other sustainable sectors in China.
China has a strong domestic market where various new forms of business develop. At TE, we are excited about the opportunities generated by the industrial technology trends in China, including electric vehicle, industrial-IoT, telecommunication infrastructure and more.
As our customers count on us for sensing and connectivity solutions to advance their technology or innovation, we will continue to consolidate our manufacturing and engineering capabilities in China to better support them.
A1
China is an important component of Whirlpool Corp’s global development strategy. Whirlpool China has been optimizing Whirlpool Corp’s global innovation platform and improving cost competitiveness in local manufacturing. This will eventually lead to the expansion of Whirlpool’s Asia-Pacific as well as global export business.
A2
In the domestic market, Whirlpool China continues to increase investment in the Whirlpool brand and strengthen our operational management capabilities to improve production and operational efficiency. We focus on the dishwasher business line to boost our kitchen appliance business in China and also to create a digital consumer journey to enhance customer experience. In the international market, we are reinforcing our efforts to expand foreign trade and make Whirlpool China a key part of Whirlpool’s global supply chain and consumer market.
A3
Whirlpool China believes that stabilizing foreign trade and investment and ensuring industrial and supply chains are critical to our business development. Whirlpool China is committed to focusing on product development and manufacturing in the local market, making Hefei an important part of Whirlpool Corp’s global supply chain and global R&D platform.
A4
China’s economic development model has helped enterprises to ensure the health and safety of employees, while smoothly resuming work and production. It has also helped to stabilize the global supply chain. At the beginning of 2020, Whirlpool China responded instantly and actively to COVID-19. We strongly believe that under the guidance of the Chinese government, and with the help of booming domestic digital technologies, the negative economic impact of COVID-19 will eventually be relieved.
A5
As China has entered a new development stage, the new philosophy and new pattern requires high-quality growth featuring innovative, coordinated, green and open methods, and will help China achieve better, fairer, safer, more efficient and sustainable development.
A6
Thanks to a better business environment and the steady advance in system and mechanism reform, enterprises in China have grown rapidly. Moving into the 14th Five-Year Plan period, Whirlpool China is full of expectations, confidence and motivation. We will continue to attach great importance to innovation and technology, creating healthy, smart and high-end products including refrigerators, washers and kitchen appliances based on consumer needs. We will also expand in both online and offline retail channels to reach more consumers, providing humanized and environmentally friendly products to help people achieve their ideal lifestyles.
A1
Under the strong leadership of the Chinese authorities, China’s rapid economic recovery has also contributed to the rapid recovery of Kao in China. China has always been the most important overseas market in Kao Group’s global strategy, and since COVID-19, the Chinese market has become more and more important.
A2
Kao wants to be China’s trusted “kirei” living partner. The Japanese word “kirei” means beautiful or clean, not only on the outside but also on the inside.
Kao continues to create and provide high-quality products in the field of “cleanliness, health and beauty”. To this end, Kao will continue to export products developed by Kao’s most advanced technology to the Chinese market.
We will also leverage the strength of research and development centers and factories in China to develop and produce products of high quality that satisfy Chinese consumer demand.
A3
The Chinese government’s efforts in “Six Safeguards and Six Priorities” are very beneficial for our long-term development in China as a foreign-funded enterprise.
The reduction of uncertainty and the realization of stable employment, investment, production and sales will be closely related to the development of future undertakings.
A4
COVID-19 affected the whole world but the Chinese government actively took strong measures to curb its spread. The outstanding performance in COVID-19 prevention and control has attracted the world’s attention.
Although the global economy has been hit hard, China’s economic growth rate in the third quarter last year turned to positive from negative, and the economy recovered and developed rapidly from the contagion.
Under the guidance of the government, we achieved work resumption relatively quickly. At present, we organize business activities in an orderly manner amid implementation of epidemic prevention measures.
A5
China is developing at a surprising rate and is achieving its goal of building a moderately prosperous society in all respects. Kao entered China in 1993 and has witnessed the rapid development of social and economic conditions and the improvement in people’s living standards over the past three decades.
In the new stage of development, Kao will continue to use the strengths of the Kao Group to strengthen the Chinese market and help Chinese consumers achieve more beautiful life.
A6
We are looking forward to further reform and opening-up policy during the 14th Five-Year Plan. We will combine our efforts to develop advanced innovative products continuously, and keep providing highquality products for Chinese consumers.
A1
Canon fared very well in 2020 in China, boasting a particularly outstanding performance in the country compared to the rest of the world. Canon’s camera market in China appears to be the most robust due to the recovery of the market and the debut of key products such as the EOS R5. After COVID-19 hit the public, families’ demand for printing has surged, driving up sales of Canon’s printers in China last year. The restructuring of Canon’s healthcare business in China has added growth momentum to the global medical market.
A2
The key to the establishment of the dual-circulation development pattern is innovation-driven high-quality development. Canon should emphasize innovation and high quality to develop its businesses in China. China plays a leading role in the development of various segments. Canon should also move in line with the latest market trends in China and ramp up efforts in innovation, especially in terms of bolstering domestic innovation capacity.
A3
We value stabilizing foreign investment the most. With the support of this policy, Canon can carry out investment in a fairer, more transparent and convenient environment, enabling us to expand our business types and areas, and participate in centralized purchasing in a more extensive manner.
Canon pays more attention to safeguarding the stable operation of industrial and supply chains, which have proved very significant through the pandemic.
A4
The development model has enabled China to be the first country in the world to resume production and has enabled its people to return to normal lives. China’s experience is of great value to the whole world. As China plays an indispensable role in the supply chains of various industries, it is essential for global industry chains that China has restarted its businesses.
A5
As China has developed at a high speed over the past 40 years and the Chinese people are striving for a better life, the country’s development is bound to enter a new era. We hope that through our advantages in imaging, we can provide better imaging products, technologies and solutions for China and enable better living and working experiences so as to further entertain and move consumers. This is Canon’s vision for the long term.
A6
We have full confidence in China’s future development in terms of its economy, markets, innovation and further openingup. China will play a leading role in the development of emerging technologies. Canon also hopes to promote development in areas such as big data, cloud computing, the internet of things, artificial intelligence and machine learning.