Overseas firms hope to continue fruitful relationship with recovering Chinese market – Reuters

Ulrich Stöfer, Chief Financial Officer of Bayer Group Greater China, said, “China will undoubtedly play a key role in influencing global growth this year as the world’s second largest economy. We note that various international financial institutions and investment banks have raised their forecasts. China’s economic growth this year.” Noting that the country’s market is huge and has a complex industrial system, a highly competitive supply chain in an improving business environment, Mr. Stäfer said: ” The Chinese market remains extremely attractive to the ambitious plans of multinational companies, including Bayer, for investment expansion.”The CFO added that Bayer’s multi-million dollar expansion project for the Beijing pharmaceutical plant will be completed this year. The plant is expected to increase the company’s prescription drug production capacity by 40% and significantly increase the company’s ability to meet the needs of Chinese patients.A firm commitment to the Chinese market and a strong focus on the country’s economic recovery from COVID-19 suggest that China’s GDP will grow by 5% this year. China will focus on a more active and targeted macroeconomic policy to ensure stable growth, according to a government performance report submitted to the National People’s Congress in March. Morgan Stanley economists even predict that the Chinese economy will grow by 5.7% this year, which is about 40% of global economic growth.The Chinese market remains extremely attractive for the ambitious projects of multinationalsHou Yang, president and CEO of Microsoft Greater China, said multinationals are one with politicians and hopes the measures announced at the “two sessions” will effectively revive China’s economic development momentum. , both inside and outside. “At the highest level, Microsoft believes that China’s digital economy is gaining momentum and, starting to pick up speed, is becoming the main driver of the country’s development,” Hou said.Hou added that the company has launched a number of cutting-edge initiatives and plans to increase the number of specialists to accelerate the development of relations with its Chinese partners to better navigate the wave of the country’s digital transformation, in particularly in the manufacturing, healthcare, automotive and retail sectors. “Given the policy direction and the resilience and vitality of the Chinese economy, multinational enterprises have welcomed new investment and business opportunities in the country,” Hou said.This opinion is consistent with the latest data. Foreign direct investment (FDI) totaled more than 1.23 trillion yuan (13.8 trillion rubles) last year, up 6.3 percent from 2021.A Siemens employee (left) demonstrates the company’s surgical robot to doctors in Qionghai, Hainan province, 2021. Photo: Courtesy of China DailyWei Jianguo, former vice minister of commerce and vice president of the China Center for International Economic Exchanges, said that despite the world’s pessimistic attitude towards FDI, China will become more attractive to foreign companies this year. due to its great openness and the expected recovery in economic activity. .Wei predicted that FDI growth this year is expected to be in the double digits, reaching $220 billion to $230 billion, likely to surpass the United States as the latter faces an economic slowdown and possibly even a recession. China was the second largest recipient of FDI in 2021, after the United States, according to the United Nations Conference on Trade and Development.The government’s performance report prioritizes the recovery and expansion of consumption, so overseas cosmetics, toy and food companies are also looking to take advantage of China’s economic recovery.A flight simulator at the Honeywell booth at the 5th China International Import Expo in Shanghai 2022. Photo: Courtesy of China DailyFabrice Megarbane, President of L’Oréal North Asia Zone and CEO of L’Oréal China, declared: “Overall, I am optimistic, confident and ambitious in the short and long term for China. L’Oréal is preparing for a recovery in the beauty market. “He noted that consumer traffic and purchases have been showing positive signs since February, so he expects a gradual recovery from the second quarter and a return of consumer interest across all categories.” China is a new investment benchmark, and we will continuously invest in China in the future and develop the open (local) innovation ecosystem,” said Megarbain.Bayer food safety products at the 3rd China International Import Expo Shanghai 2020. Photo: Courtesy of China DailyMeanwhile, the Danish Lego Group is so optimistic about China’s prospects that it has significantly increased its presence in the country this year. “We plan to open an additional 80 new retail stores in China this year. Currently, more than 40% of our stores are located in Tier 3 cities and below, which have huge potential for growth,” said Paul Huang, General Manager of Lego China. Sales growth in China is being driven by the country’s more than 200 million people under the age of 14, the economic recovery and the growing purchasing power of a growing middle-income group, Huang added. .Zhu Wenqian and Zheng Yiran contributed to this story