Global enterprises in China will grow
Foreign companies operating in China, a long-term thriving part of the national economy, are expected to continue to increase investment this year as many countries around the world face uncertainties amid the Russian-Ukrainian conflict, high inflation rates and a slowing economic recovery. , analysts and business leaders said.
In addition to describing China as a haven for foreign direct investment, they said the country’s efforts to create a unified internal market, its large middle-income group and its shortened negative lists will help its economy to soften shocks. and maintain a steady growth momentum.
By building a unified domestic market comprising all elements of production and resources (capital, technology and energy), China will further remove barriers to the rational flow of factors of production, said Bai Ming, deputy director of international market research. at the Chinese Academy in Beijing. international trade and economic cooperation. It will also reduce transaction costs and ensure fair competition, which will encourage domestic and foreign companies to invest across the country, Bai said.
The country’s strengths in attracting global capital will continue, he added, and industries such as new energy, consumer, high-end manufacturing and services will remain hotspots for multinational investment. .
Thanks to the country’s complete industrial chains, policy assistance and stable business environment, FDI flows to the Chinese mainland, in use, increased 14.9% year-on-year to reach an all-time high of 1.15 trillion yuan ($170.43 billion) in 2021, according to the Ministry of Commerce.
In addition to opening new stores in smaller towns and adding investment in children’s clothing and products in coming years across China, Skechers, a sports and leisure footwear and apparel company based in the United States, will begin building the second phase of its logistics center in Taicang. in Jiangsu province and will start operations from its new Chinese headquarters in Shanghai in the second half of the year.
“We are confident about the Chinese market,” said Willie Tan, CEO of Skechers China, South Korea and Southeast Asia. The company will continue to strengthen its diversified product layouts for all age groups to meet the needs of different consumers, as China has become the cradle of promoting “many new consumption scenarios, products and services regarding the sports and health industry,” Tan said.
Vivian Tu, Marketing Manager of Philips Domestic Appliances Greater China, said the household appliances sector, somewhat boosted by work-from-home trends related to the COVID-19 pandemic, will have the potential to grow stronger than before. and to see new opportunities in China as consumer demand has become more diverse and personalized.
“We will expand the research team at our innovation center in Suzhou, Jiangsu province, to focus on cutting-edge technologies such as robotics, internet of things and artificial intelligence over the next five years. coming years. It will create new momentum for the home appliance industry with the development of digitalization and intelligence,” Tu said.
Bai Wenxi, chief economist at IP Global China, said China, facing fierce competition in Southeast Asia in labor-intensive manufacturing sectors, has improved the competitiveness of its industrial chains. . Its ability to attract global capital has been further enhanced by the expansion of openness policies and the implementation of equal treatment for foreign-invested enterprises.
Rajat Agarwal, Chairman of Henkel China, a German chemicals and consumer goods manufacturer, said: “Looking forward, China will continue its transformation to high-quality growth and drive progress to achieve its double carbon. We anticipate strong future demand in the areas of packaged food, home improvement, automotive and electronics, and Henkel will continue to support its customers and consumers with impactful innovations. »
Henkel resumed production in Changchun, Jilin Province, on April 15, making products for key industries including metals, automotive and rail transportation. Its two Shanghai factories have been “whitelisted” to restart closed-loop production and plan to increase production capacity if conditions allow.