Global @ China · 2023 Start | Executives of Foreign Enterprises in China from Multiple Countries: China's Economy Shows Strong Resilience and Will Continue to Expand Investment Economy in China | Executives | Foreign Enterprises

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Since the second half of this year, China has intensively released a series of new measures to stabilize the economy and foreign investment, which have attracted attention both domestically and internationally. Recently, several executives of foreign companies in China stated in an interview with overseas websites that the Chinese economy has shown strong resilience, and the government is actively optimizing the foreign investment environment to boost the confidence of foreign companies and provide more opportunities for future development.

"China's economy has strong resilience"

The current Chinese economy is continuing to recover, with an overall recovery and improvement. Economic vitality and potential are constantly being unleashed. Several executives from foreign companies in China have expressed optimism about China's economic growth prospects this year, with "resilience" becoming a frequently mentioned keyword.

"During the epidemic, the resilience of China's supply chain, entrepreneurs, and society as a whole has been fully demonstrated and improved, which is also a guarantee for the recovery of the Chinese economy." Xu Yang, President of Yabao China, said that thanks to the booming development of China's new energy vehicle industry, the company's business still achieved rapid growth during the epidemic and continued to increase investment in China.

Ye Xiaofeng, Vice President of Novartis Asia Pacific in Denmark, stated that in the past period of time, China has overcome multiple challenges such as the pandemic, demonstrated strong economic resilience, and signals of economic recovery are gradually emerging. He believes that China's accelerated green development has created numerous opportunities for many technology innovative enterprises, including Novozymes, and has also given them confidence in the future Chinese market.

The strong resilience of the Chinese economy is also a common feeling of Zhao Bingdi, Vice President of Panasonic Electric China Northeast Asia Company in Japan. In his view, the steady growth of the Chinese economy has further strengthened the confidence of foreign-funded enterprises in their development in China. "Compared to other economies in the world, the Chinese market has unparalleled advantages. It not only has strong consumer power, outstanding innovation ability, and a large number of technical talents, but also has huge domestic market demand, complete industrial and supply chains, and great economic development potential, providing enterprises with broader and deeper opportunities for development in China."

"Increased confidence in foreign business operations"

Recently, the State Council of China issued the "Opinions on Further Optimizing the Foreign Investment Environment and Increasing the Attraction of Foreign Investment", proposing 24 policy measures in 6 aspects. The interviewed executives of foreign companies in China generally stated that these policies are inspiring and have strengthened their confidence in investing in China.

"After the release of the 'Opinions', there has been a lot of discussion in our foreign enterprise circle, and everyone feels very confident. Xu Yang said that these policies that attract foreign investment are in line with the demands and interests of foreign-funded enterprises. Yabao has already enjoyed the dividends of policy implementation, such as the exemption of withholding income tax on a business in Meishan City, Sichuan in early August.".

The Opinion particularly emphasizes supporting foreign investment in establishing research and development centers in China and encouraging foreign investment to undertake major scientific research projects. In Ye Xiaofeng's view, the Chinese government keeps pace with the times, escorting foreign enterprises in the entire innovation process from leading innovation, accelerating innovation, to protecting innovation.

Xu Zhonghua, vice president of Total Energy R&D Asia in France, said that today's world is full of uncertainty. The Chinese government can respond to the demands of foreign-funded enterprises in China and quickly launch countermeasures, which can not only protect the interests of foreign-funded enterprises, but also create a more open, transparent and attractive investment environment for China.

"The investment layout continues to expand"

From January to July this year, there were 28406 newly established foreign-invested enterprises in China, an increase of 34%, once again confirming that the Chinese market is still a hot spot for foreign investment. Several executives from foreign companies in China have expressed to Overseas Network that they will expand their business in China this year and share opportunities for China's development.

Xu Yang stated that in the next two to three years, Yabao's production capacity in China will further expand. "Last year, we invested $500 million to build a new production base in Meishan, Sichuan, and completed a $200 million acquisition in Guangxi. In the future, we plan to invest an additional $140 million to carry out technological upgrades and safety and environmental upgrades for three existing factories in China."

"As an international comprehensive energy company, we are particularly concerned about investment opportunities in the clean energy sector," said Xu Zhonghua. Currently, China is striving to achieve the "dual carbon" goal and encouraging green investment. As a European enterprise, Total Energy is at the forefront of clean energy concepts and innovation, and is very willing to share experiences and insights with the Chinese market to help China achieve its "dual carbon" goals.

During an interview, Zhang Xiqiang, Executive Vice President of Nestle Group in Switzerland, also expressed his expectations for expanding the Chinese market. "Since 2020, Nestle has invested over 1.4 billion yuan in China. China has always been a fertile ground for foreign investment and development. Since the beginning of this year, China's ambitious goals of high-level opening up to the outside world and measures to promote high-quality development have injected great confidence into foreign companies like Nestle, who have been investing and developing in China for 37 years. Nestle will follow the pace of China's economic growth and further cultivate the Chinese market, making contributions to China's economic development."

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