Global firms eye opportunities
Despite rising global uncertainties, multinational companies remain committed to China as they plan to expand their local presence and investment, and are impressed by the country’s latest commitment to high-standard opening-up and high-quality economic development, global business leaders say.
In a report that Xi Jinping delivered at the opening session of the 20th National Congress of the Communist Party of China on Oct 16, he stressed the need to promote high-standard opening-up and accelerate efforts to foster a new pattern of development.
Seeing big opportunities in areas such as carbon neutrality, advanced manufacturing and innovation-driven development, foreign companies increasingly value China’s multiple roles as a vast market, a crucial part of global supply chains and a pioneering research and development hub, senior executives said in a series of interviews with China Daily.
Tao Lin, vice-president of the electric carmaker Tesla, said the report highlighted that further advancing opening-up is a key feature of the new era, and as a beneficiary of such efforts, the company is convinced that “it will create more value in this vigorous and dynamic land”.
“Thanks to the Chinese government’s decision to scrap limits on foreign ownership of electric vehicle companies, Tesla became the first wholly foreign-owned vehicle manufacturer in the country,” Tao said. “Now Tesla is even more deeply engaged in China’s promising domestic market.”
In addition, more than 95% of Tesla China’s industrial chain is now localized, which serves as a bond for Tesla to forge a better future together with local new energy vehicle brands and demonstrates the great strength of “Made in China” to the rest of the world, Tao said.
Hou Yang, chairman and chief executive of Microsoft Greater China, said that due to China’s increased openingup and its economic vitality, foreign companies have more opportunities to invest in the country, and the Chinese market has become increasingly appealing.
“China’s ever-improving economic foundations and technological innovation capabilities have enabled it to demonstrate its strong resilience and flexibility in the face of risks,” Hou said, adding that the company will increase its local workforce to more than 10,000 next year by adding about 1,000 new jobs.
Such sentiment is in line with recent figures pointing to the strong momentum of foreign direct investment in China. FDI in the Chinese mainland, in terms of actual use, grew 16.4% year-on-year to 892.7 billion yuan ($123.5 billion) in the first eight months of this year, the Ministry of Commerce said.
Wu Dongming, chief executive of DHL Express China, said that amid challenges and pressures, China’s economic stability is the biggest contribution to the world economy and global supply chains.
“Looking forward, China’s focus on sustainable development will greatly benefit international trade,” Wu said, adding that the company tested its first pilot hydrogen fuel cell truck in Shanghai last month as part of the German logistics firm’s broader push to experiment with the latest green technology and boost investment in the country.
China’s high-quality development agenda and its growing innovation prowess are also boosting business leaders’ confidence as these promise big potential for growth.
China has moved up to 11th place in the 2022 Global Innovation Index from 34th a decade ago, and remains the only middle-income economy in the top 30, according to the latest ranking published by the World Intellectual Property Organization in late September.
Frank Meng, chairman of Qualcomm China, said the company was impressed by China’s continued efforts to make significant progress in improving its intellectual property system.
“The achievements signal a bright future for China’s innovation-driven development strategy. Strong and equal IP protection will further enhance foreign companies’ long-term confidence to invest in China.”
Wang Lei, global executive vice-president of the British pharmaceutical company AstraZeneca, said he was encouraged by the report’s emphasis that innovation will remain at the heart of China’s modernization drive.
“China’s innovation-driven development strategy will create more opportunities for us as the country has become a very important part of our global innovation as well as our R&D network,” Wang said.
Experts forecast that China’s growth engines could be revving up as it heads into 2023, which will motivate more foreign businesses to increase their investment in the country.
Christine Lam, chief executive of Citi China, said as China’s economy charts its own path despite global economic uncertainties, it “will provide global investors with a hedge in an increasingly uncertain world and, given its sheer scale, a cushion for global growth”.
“China’s innovationdriven development strategy will create more opportunities for us as the country has become a very important part of our global innovation as well as R&D network.” WANG LEI