China is not only the big market that attracts multinational corporations, but also the global market
Numerous executives from global multinational corporations have recently embarked on a series of visits to China, which has attracted close attention, reflecting the firm confidence of multinational corporations in the prospects of the Chinese economy. In addition to its super large market, China's manufacturing strength and innovation capabilities also have strong appeal to multinational corporations.
At the end of 2019, Tesla's Shanghai super factory was put into operation, pulling Tesla out of the "production capacity hell" at the "Shanghai speed" of starting, operating, and delivering that year. Today, Tesla has grown into the world's largest car company by market value. Tesla CEO Musk, who recently visited China, stated that Tesla's Shanghai factory is one of the most efficient in the world and produces one of the best quality cars in the world.
Musk's praise for the Shanghai factory has a profound practical foundation, and the significance of the Chinese market, Chinese manufacturing, and Chinese innovation to Tesla is typical. China is the world's second largest economy, as well as an important consumer center, manufacturing center, and innovation center. The close cooperation between multinational corporations and the Chinese market largely determines their development speed and quality.
At a time when developed economies are facing the risk of economic recession, the enormous potential of the Chinese market is crucial for multinational corporations to achieve stable performance. The website of Consumer News and Business Channel in the United States recently published an article stating that China has a large population and a growing middle-income group, making it an ideal market for multinational corporations. Many American companies, including Procter&Gamble, Starbucks, and Yum!, are benefiting from China's economic recovery.
China's unique advantages in the supply chain are also attractive to multinational corporations. PwC recently released a report showing that most multinational companies in China highly recognize the unique advantages of China's supply chain, stating that due to factors such as higher labor efficiency, logistics levels, and lower tariff levels, China still has a strong advantage in the global manufacturing system.
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Faced with a complex external environment, China has firmly expanded its opening-up and continuously introduced favorable policies for foreign investment, significantly enhancing the confidence of multinational corporations in investing in China. The Ministry of Commerce stated that this year it will study and promote the rational reduction of the negative list of foreign investment access, and further cancel or relax restrictions on foreign investment access. In addition, high standards will be implemented to ensure the national treatment of foreign-funded enterprises, and policy measures will be studied and introduced to address the relatively concentrated feedback from foreign-funded enterprises. The first quarter 2023 research report on China's foreign investment business environment released by the China Council for the Promotion of International Trade shows that 97% of foreign companies surveyed rated the foreign investment policies introduced by the Chinese government since the fourth quarter of last year as "satisfactory" or above.
In addition, China's driving force for global technological innovation is also becoming stronger. Nvidia founder Huang Renxun recently stated in an interview that "the Chinese market is irreplaceable." Currently, global technological innovation and industrial transformation have entered a period of intensive activity, and new energy vehicles and artificial intelligence are two major fields at the forefront of technological change. The companies led by Musk and Huang Renxun are both leaders in the new energy vehicle industry and benchmarks in the AI chip industry. The two of them place such great importance on China during a critical period of industry development, which is an important manifestation of China's influence on global technological innovation.
More and more multinational companies are listing China as an indispensable part of their development strategy map. Since China optimized its epidemic prevention and control measures, many executives from large multinational companies with global influence, such as Apple, Ford, General Motors, AstraZeneca, BHP Billiton, Siemens, etc., have visited China and expressed optimism about China's development prospects, hoping to continue sharing the dividends of China's economic development. This trust will inevitably translate into mutual benefit and win-win cooperation between China and multinational corporations.