Editor's note: China has reached its first centenary-related goal and is embarking on a new journey to fulfill its second centenary-related goal of building a strong and modern socialist country in all respects. China Daily talked to business executives of multinational corporations on their understanding of China's achievements and growth engines going forward, and opportunities they are ready to embrace.
Q1: Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee, Chinese president and chairman of the Central Military Commission, announced at the ceremony marking the centenary of the CPC that the nation has accomplished the building of a moderately prosperous society in all respects. In your view, what are the main factors that helped China accomplish this goal?
Q2: What do you make of Xi's emphasis in his speech on China pursuing peaceful development as well as its resolve to promote high-quality development and further deepen reform and opening-up? What does this mean for your business in China?
Q3: One big achievement China has made is eradication of absolute poverty. Now the country is moving toward achieving common prosperity. In your view, what is the most attractive and promising part of the Chinese economy as the country seeks to reach the second centenary-related goal－that of building a strong and modern socialist country in all respects?
Q4: China has embarked on a new development journey. What new trends do you expect to emerge as the country boosts its innovative ability to actualize the full potential of its productivity and also makes progress in improving rule of law and modern governance? How do you plan to position your business to benefit from such trends?
Q5: Which areas need to be prioritized to further increase the resilience of the Chinese economy and boost its attractiveness for foreign companies and investors?
Dan Cotton, managing director for Asia-Pacific of Ascential. (PHOTO PROVIDED TO CHINA DAILY)
A1 Since China's opening up to foreign trade and investment and implementation of free-market reforms in 1979, the country has been among the world's fastest-growing economies, with annual GDP growth averaging 9.2 percent through 2020, a pace described by the World Bank as "the fastest sustained expansion by a major economy in history".
The Chinese government adjusted its development strategy to continuously boost its productivity growth. The government is determined to move away from its previous economic model of rapid growth at any cost to "smarter" economic growth, which seeks to reduce reliance on energy-intensive and high-polluting industries and rely more on high technology, green energy and services.
A2 China remains attractive to foreign investment for its huge domestic market, high-quality infrastructure and continuous opening-up policies. China is the first country to emerge from the negative impact of COVID-19. Lots of commercial activities here are back to normal, which makes it more appealing to foreign investors.
Therefore, we have made the decision to further increase our investment in China. We acquired two Chinese companies－Duozhun and Yimian, specializing in digital commerce data and marketing optimization－in the past two years. Through this, we have expanded our operations in China to six major cities and increased the number of staff to more than 500.
A3 It will undoubtedly create more opportunities for foreign consumer brands, given the purchasing power of consumers in small cities and rural areas. According to the China Shopper Report 2021 produced jointly by Bain & Company and Kantar Worldpanel, while total spending on fast-moving consumer goods dropped by more than 1 percent in China's largest cities, spending rose in smaller urban areas.
This also gives brands new opportunities to develop new products and services based on the different needs of these consumers as they have different drivers and lifestyles compared with sophisticated consumers in large cities.
Another point to consider is that brand awareness in small cities and rural areas is usually lower than that in large cities. Therefore, it is an opportunity for brands to reposition and strengthen themselves by delivering tailored experiences for these communities.
A4 The digital economy will continue to grow and remains a key driver of China's economic recovery. In many respects, China's online retail ecosystem is now more advanced than in other markets.
Innovation is expected to be the key policy focus. This year marks the beginning of the 14th Five-Year Plan (2021-25). Indigenous innovation is considered fundamental to China's future growth.
We are still considering making further acquisitions and organic investments in China to further boost our local expertise. This will enable us to be in a better position to help foreign consumer brands better develop in the China market and Chinese companies better navigate overseas markets.
A5 The Chinese government has made tremendous efforts in deepening reform and increasing its attractiveness to foreign investors in the past decades, but we feel there is more to do around improved communication between government and MNCs to help MNCs better navigate any ambiguity in rules and regulations.
Zhang Ying, managing director for Dassault Systemes Greater China. (PHOTO PROVIDED TO CHINA DAILY)
A1 China's comprehensive construction of a moderately prosperous society cannot do without the strong leadership of the Chinese government. With the adjustment of China's industrial structure and the development of changes in its external structure, Dassault Systemes, like many other foreign companies, chose to invest in China and become a participant in and contributor to China's economic development.
A2 Scientific and technological innovation is the core element of the current economic development. From the optimization and upgrading of infrastructure and more accurate medical solutions, to more rational use of environmental resources, these industries concerned about the quality of people's lives have the same demand for innovation and sustainable development in the process of development.
Dassault Systemes will play a forward-looking role in the industry and leverage innovation to promote sustainable development. In the three main sectors of our business－manufacturing, life sciences and healthcare, and infrastructure and cities－Dassault Systemes has accumulated rich digital experience and technical advantages.
A3 This year is a new critical moment for the world and China. The Chinese government's 14th Five-Year Plan (2021-25) has put scientific and technological innovation in the most important position.
The Government Work Report clearly pointed out that the 14th Five-Year Plan will continue to focus on the real economy, promote the advanced industrial base, modernize the industrial chain, maintain the basic stability of the manufacturing industry, transform and upgrade traditional industries and develop and grow strategies.
Starting from this year, sustainability has become the core development strategy of Dassault Systemes. This perfectly aligns with the objectives of the Chinese government regarding carbon-neutral economy and digital transformation so as to achieve high-quality manufacturing development.
A4 To achieve the goal of high-quality economic development, it is essential to improve R&D capabilities and the penetration of high-end digital software.
As China accelerates the development of "new infrastructure" and industrial digitization, Dassault Systemes has made internal adjustments for the Chinese market to promote the development of a sustainable high-tech economy.
Local governments in China are constantly optimizing their business environments, and Dassault Systemes has continued to cooperate with local governments and customers that are leading in some industries on the digital transformation of enterprises and intelligent manufacturing, to jointly create innovation centers. At present, innovation centers have been established in Chongqing, Qingdao, Wuhan and other cities.
A5 China is a very important manufacturing base and consumer market. An increasingly open Chinese market is a world market, a shared market and everyone's market. It has built a broad platform to promote mutual benefit and win-win results for all parties.
We feel that the business environment is continuously being optimized and improved. With the foreign investment policies launched, foreign-invested enterprises can participate in market competition on an equal footing.
Wu Dongming, CEO of DHL Express China. (PHOTO PROVIDED TO CHINA DAILY)
A1 China has accomplished the building of a moderately prosperous society in all respects with remarkable results as it has been committed to advancing trade liberalization and economic globalization by continuously deepening reform and opening-up.
China has been committed to advancing trade liberalization and economic globalization by continuously deepening reform and opening-up, and it has achieved remarkable results.
The long-term vision, strategic thinking and the strong will of the Chinese government has enabled China to achieve this great accomplishment, and also contributed to world progress.
In addition, it uplifted and drove the world's recovery from the pandemic, especially considering the marvelous achievement was made in a time when global economic order was undergoing challenges and uncertainties.
A2 The remarkable changes that resulted from China's reform and opening-up in the late 1970s have transformed China into the second-largest economy in the world, testifying that openness is the right way to growth and wealth.
The Chinese government's commitment to promoting high-quality development and high-level opening-up will bear fruit by attracting more foreign investment and enabling more Chinese companies to go global and do business internationally. This will further increase demand for international logistics. DHL Express China will continue to play its part in contributing to the development of China's logistics industry.
A3 The strong economic recovery from COVID-19 again demonstrates the extraordinary resilience and dynamism of China's economy.
The resilient economy comes from the Chinese government's commitment to market-oriented reform, high-level opening-up and complete industry chains and infrastructure facilities that have been proven successful both before and after the pandemic.
These are fundamental to the steady and sustainable economic growth in China, and distinguish China's economy from other economies.
A4 A number of innovative logistics practices have played a big part during the COVID-19 pandemic, like no-contact pickups and delivery services and unmanned logistics, highlighting the advantages of the digital economy.
DHL structurally invests in trend research and solutions development. We expect to continue collaboration with Chinese counterparts to embrace technological innovation in the logistics industry.
As an international express delivery company, we have witnessed and also deeply benefited from the continuous improvement in China's business environment－the efficiency in Customs clearance in particular.
A5 During the 14th Five-Year Plan (2021-25) period, the Chinese government has pledged to accelerate digitalization development and build a digital China.
The digital economy plays an important role in stabilizing economic development. Even during the pandemic, it has maintained rapid growth and expedited the development of new business models, including online entertainment, online healthcare and teleworking. We believe the future digital economy will continue to serve as one of the stabilizers and accelerators to spur new growth.
Jessica Wang, managing director of Hays China; chair of Hays Asia Diversity&Inclusion Steering Committee. (PHOTO PROVIDED TO CHINA DAILY)
A1 It is a remarkable accomplishment for China to achieve its goal of building a moderately prosperous society. One hundred years ago, this nation was suffering from a turbulent social, economic and political environment. A century later, China is now the second-largest economy in the world with a life expectancy of over 76, roughly a 97 percent literacy rate and US$10,000 GDP per capita.
From where I stand, I think there are three main factors that led to this exciting milestone: a safe and stable environment, a focus on innovation and a culture of resilience throughout Chinese history.
Having a safe and stable social and economic environment is fundamental to achieve nationwide accomplishments. The ongoing promotion of innovation has led to great improvements in efficiency across many different sectors. On top of that, the legacy of resilience in Chinese culture has existed for thousands of years, which empowers the Chinese people.
A2 China's ongoing efforts and commitment to deepening reforms and further opening-up continue to create a better business environment and more opportunities for foreign investors. As a leading global professional recruiting group, Hays is excited to provide our services to a broader range of clients in China.
We have benefited from China's major developments in life sciences and information technology. In recent years, our operations in China have shifted due to the rising influence of Chinese companies that grew from the reform and opening-up policies. Our records show that companies that fall under the umbrella of high-quality development, especially in healthcare, high-tech, new energy and smart manufacturing, have shown great demand for high-quality talent.
A3 I think the most attractive and promising aspect of the Chinese economic goals is the shift in mindset that comes along with the real economic and lifestyle changes.
In the 2021 Hays Asia Salary Guide, even though salaries stagnated over last year throughout most places in Asia, China sees the most optimistic salary increase among all regions, with 64 percent of companies increasing their salaries to varying degrees. Salary ranges of employee candidates in China are now one of the highest among our clients globally.
A4 The trends brought about by innovation, tapping productivity potential and modern governance are very promising. A specific new trend we see is the maturing of domestic companies in cutting-edge sectors, such as healthcare, high-tech, new energy and smart manufacturing.
Hays in China is rebalancing the ratio of international and domestic clients due to the rise of domestic companies. We now have a 50/50 ratio for international and domestic companies among our clients.
We have found that many domestic companies are robustly expanding their R&D teams and are now craving skilled and innovative talent.
A5 I think priority should be given to continued focus on high-quality development of the domestic economy and to boosting domestic demand, while also attracting foreign companies and investors by further opening up.
We see a great number of leading Chinese companies thrive and eventually go overseas. Some of our domestic clients have done this, which benefited multinational recruitment companies like Hays that provide them with services on a global scale.
Bill Liu, vice-president of sales and general manager of China business of Western Digital. (PHOTO PROVIDED TO CHINA DAILY)
A1 China has continued to steadily promote reform and opening-up for more than 40 years. Adhering to both "bringing in" and "going out", China has consistently contributed to an open, inclusive, shared and balanced global economy. This is a remarkable achievement.
China not only continuously optimizes its business environment to attract foreign investors, including Western Digital, but also supports vigorous development of various industries to greatly improve people's quality of life. I think this is one of the main factors that has led China to achieve such great results in its prosperity.
A2 As the global market faces challenges, China is still unswerving in its mission to deepen reform and opening-up and share opportunities with the world through a series of measures that promote economic recovery.
This has strengthened the confidence of many enterprises with global businesses and plans in China. At Western Digital, we will continue to work with partners from all sectors to deepen cooperation and contribute to the high-quality development of both China and the global digital ecosystem through our leading storage technology.
A3 Over the past few decades, we have witnessed China work to achieve its Two Centenary Goals with a concerted nationwide effort. In the 14th Five-Year Plan's chapter on building a "Digital China", it clarifies China's direction for digital transformation and advancing in every aspect.
As a leader in data infrastructure, this is an exciting direction for Western Digital. We provide comprehensive solutions to fully activate the potential of data and tap into its value, accelerating and empowering digital transformation to serve as a new engine of economic development.
A4 Advanced digital technology, accelerated digital infrastructure construction and a huge user base are all advantages for the rapid and sustained development of China's digital economy. And all of these are accompanied by an explosive growth in data storage requirements.
Western Digital continues to pay attention to the development trends of the China market and has insights into these diversified and ubiquitous storage needs. Based on these, we will continue to explore innovative data solutions that reduce costs and increase efficiency with ecosystem partners in the Chinese market to meet growing market demand.
Western Digital attaches great importance to the Chinese market. China's digital economy is developing rapidly. With the rise of emerging fields and development of leading technologies, including IoT, cloud computing and 5G, the demand for data storage in the China market is unprecedentedly huge, and will keep growing in the future.
A5 China is actively advancing research into key digital technologies and strengthening innovation in data infrastructure. This requires engagement throughout the entire industry chain, from data storage and management at the bottom to digital applications at the top.
This enables China to respond to any uncertainty in the economic environment with smarter and flexible deployment, thereby enhancing overall resilience. This will create a sustainable and stable investment environment for foreign companies and investors like Western Digital.