Three or four decades ago, multinational corporations used to take a no-nonsense approach while doing business in China.

They would bring in products that have already been successful internationally and train local factories to produce them for Chinese consumers.

This strategy, supported by the scale and profitability of the Chinese market, has proven effective.

As a result, they could gradually expand their presence by establishing additional factories, branches and regional offices in China to maintain a competitive advantage.

However, this model no longer fits today’s complex business landscape.

A large number of global companies have heavily relied on the China International Import Expo platform, which has been held annually in Shanghai for seven years now, to showcase their latest products, solutions and services, as well as build connections with new customers in China as well as with other companies. countries.

Many products and technology solutions that made their debut at CIIE were developed in their research and development centers in China, showing a clear trend in the concentration of investment in the country in recent years.

The seventh edition of CIIE, which was held from November 5 to 10, covered an area of ​​more than 420,000 square meters and attracted 3,496 exhibitors from 129 countries and regions.

As many as 297 Fortune 500 companies and industry leaders attended this year’s exhibition, a record high, according to information released by the Ministry of Commerce.

A total of 186 companies and institutions, including French industrial conglomerate Schneider Electric, Swiss food and beverage giant Nestle SA and US materials science group Dow Inc, have taken part in CIIE in all seven years.

Pointing out that this grand event has established itself as a premier venue for global product debuts for seven years, Arnold Li, senior vice president of Ingersoll Rand Inc, a US industrial goods manufacturer and a seven-time CIIE participant, said the exhibition to become a key platform for Ingersoll Rand to launch new products.

The company, in fact, held the world premiere of its latest compressor during the exhibition.

“The Chinese market holds a key position in our global business strategy. As the world’s second largest economy, China offers immense potential and innovative capabilities, giving us many opportunities for growth,” said Li.

“We strongly believe that the Chinese market is not only a key driver of our current expansion, but also a central focus of our future strategic structure,” he said.

Sectors including healthcare, biotechnology, new energy and automation will be the group’s next growth points in China, he added.

Up to 450 new products, technologies and service items made their debut at this year’s CIIE, up from 442 in 2023, the Commerce Ministry said.

Market watchers and foreign business leaders see this as strong evidence of global companies’ confidence in the Chinese market and their commitment to further expand in the country despite a sluggish global economic recovery.

Amid the current headwind of economic globalization, China remains steadfast in advancing reform and opening up, optimizing the business environment, and making continuous efforts to enhance market transparency, efficiency and market rules.

The government has introduced a number of policies to attract foreign investment, said Dereck Ji, managing partner for China at Belgium-based ADL Consulting.

For example, the latest edition of China’s national negative list for foreign investment, which took effect on Nov. 1, removed the last two manufacturing-related restrictions, further opening up the sector to global investors, according to the National Development and Reform Commission.

“As China’s manufacturing sector undergoes transformation and modernization, high-quality manufacturing has become a key area for attracting foreign investment,” Ji said.

Strategic industries in the manufacturing sector, such as electric vehicles, new materials, intelligent manufacturing, industrial robots, biomedicine and high-performance medical devices, aerospace and high-end equipment manufacturing, provide opportunities for foreign companies to grow through technological cooperation and investments. , he added.

In addition to showcasing the latest products and technology solutions at its 600 square meter stand, Swedish technology group and seven-time CIIE participant Hexagon AB said it plans to offer more customized solutions for fast-growing sectors such as be electric vehicles and commercial aviation, to support China’s growing demand for high-quality manufacturing.

“Collaborating with local partners and startups has been a key part of this strategy, helping us stay nimble and respond directly to the needs of China’s industry,” said Josh Weiss, president of Hexagon’s manufacturing intelligence division.

Having established enablement centers in Shanghai and Qingdao, Shandong Province, as well as other regions of the country in recent years, the Stockholm-based group is currently building its South China headquarters in Shenzhen, Guangdong Province, at a investment of over 200 million euros. euro ($212.4 million). The facility will be operational by the end of next year.

This will create an “Industry 4.0” demonstration model, including a global “lighthouse factory” and the core resource ecosystem for the entire industrial chain. It will also provide solution support for customers in Southeast Asia and other Asian countries, Weiss said.

Given its institutional openness, market size, robust infrastructure, growing innovation power and talent pool, as well as its status as a “world factory”, China’s foreign direct investment in actual use has reached $163.3 billion in 2023, an increase. 176 times the $920 million in 1983, Commerce Ministry data show.

Foreign executives at CIIE often express “long-term confidence in China” based on the country’s stable economic fundamentals and consistent steady growth trajectory in the world’s second-largest economy, said Liu Tao, a researcher specializing in market economy studies at Development Research Center of the State Council.

Despite a high benchmark set the previous year, China’s economy grew at an annual rate of 4.8 percent in the first three quarters, outpacing many other major global economies, according to the National Bureau of Statistics.

By November 10, companies have already signed up for more than 100,000 square meters of exhibition space for the eighth CIIE to be held in November next year, the CIIE Bureau, one of the exhibition’s organizers, said.

Reflecting this enthusiasm, Treasury Wine Estates, Australia’s largest wine producer by sales revenue and the parent company of Australian wine brand Penfolds, sees CIIE as a well-developed business platform for China to open up global cooperation and promote a prosperous common market.

The Penfolds booth showcased wines from countries such as Australia, the United States, France and China for the fifth time during the 7th Shanghai CIIE.

“This is an exciting time for TWE and the Penfolds business, with China remaining a highly attractive long-term growth opportunity,” said Tom King, managing director for Penfolds.

King said the re-establishment of the group’s Australian portfolio in China this year had seen a fairly positive response from consumers to date, reflecting the continued strength of the Penfolds brand in the market.

“We will continue to invest to support our growth ambitions in China, including expanding our local team and developing businesses on digital sales platforms, while continuing to strengthen our commitment to the Chinese market, its consumers and the local industry,” he he added.

To meet the growing domestic demand for various agricultural products, the Syngenta Group, headquartered in Basel, Switzerland, has signed import agreements with a number of companies such as Louis Dreyfus Company, a processor and trader of agricultural products from the Netherlands and Jiusan Grain and Oil Industry Group. Co Ltd of Harbin, Heilongjiang Province, for a total contract value of USD 1.5 billion during the 7th CIIE.

The agreements cover key agricultural exporting countries, including Brazil and Argentina, with a wide range of products such as feed grains, coffee, edible oil and oilseeds.

“Future agriculture must not only support a growing population, but also actively and effectively protect the environment. Achieving an efficient and ecological transformation is only possible through accelerated innovation in agricultural technology,” said Su Fu, Chairman of Syngenta Group China.

As a company deeply rooted in China’s agricultural sector, Syngenta will focus on the vast market and significant opportunities arising from China’s drive to modernize agriculture, Su said.

The value of exports and imports of foreign-invested companies reached 10.61 trillion yuan ($1.47 trillion) in China from January to October, up 1.3 percent year-on-year and accounting for 29.5 percent of the total value of the nation’s foreign trade, according to statistics. issued by the General Administration of Customs. – China Daily/ANN