BEIJING, Aug. 14 (Xinhua) -- Global multinational corporations: Decoupling from China won't work
Xinhua News Agency
Recently, the head of a British industry organization claimed that "British companies are cutting off economic ties with China on a large scale." However, a survey by the British Chamber of Commerce in China clearly shows that Uk businesses are generally optimistic about the Chinese market. Jeremy Warner, a commentator for the British daily telegraph, warned of a heavy price to pay for decoupling from China.
Globally, many multinational enterprises generally believe that the Chinese market has great potential, significant supply chain advantages, and a firm pace of expanding opening up, which is an indispensable part of economic globalization and decoupling from China.
This is the Yangpu International Container Terminal, an important container shipping hub for the construction of Hainan Free Trade Port, taken in the early morning of December 5, 2021 in the Yangpu Economic Development Zone, Hainan (drone photo). (Photo by Pu Xiaoxu, Xinhua News Agency)
Being close to the Chinese market is the trend of the times
A number of European multinational companies recently released their first-half earnings reports. European car manufacturers such as Volkswagen, BMW and Mercedes-Benz have performed well in China, and the British FMCG company Reckitt Benckiser, German chemical giant BASF and French beauty giant L'Oréal have also performed well.
Under the adverse factors of the world economy such as the repeated outbreak of the new crown epidemic, supply chain obstruction, and rising energy prices, multinational enterprises have seen strong sales in China, steady investment, and rapid business expansion.
As the world's largest goods trading country and the second largest consumer market, China imports about US$2.5 trillion in goods and services every year, which is a fertile ground for many multinational enterprises. Being close to the Chinese market is the main line of their business strategy.
Taking the automobile industry as an example, with the continuous upgrading of China's automobile market, more and more international auto brands regard China as the most important market in the world. Representing the future development direction of the automotive industry, new energy, intelligence and networking are developing rapidly in China, attracting international automotive giants to increase innovation and research and development, and China is becoming a global automotive industry innovation center.
"If you're not in China, if you can't keep up with China's pace, I doubt you'll be a leading automaker in the next 5 to 10 years." Feng Sihan, former CEO of Volkswagen Group China, said that China is currently "the source of power leading the development trend of next-generation cars".
Geoffrey Sachs, a world-renowned economist, argues that China is vibrant and that the idea of "decoupling from China" is "pathetic" and "misleading" and will only become increasingly isolated in the world.
Geeta Gopinat, the IMF's first vice president, believes that some "decoupling" trends will pay a huge price for global growth. She pointed out that China is an important engine of the world economy, and an open China is of great significance to global trade and the growth prospects of the rest of the world.
This is the science and technology building and engineering center of NINGDE Times New Energy Technology Co., Ltd. photographed on September 11, 2019 (drone shooting). (Photo by Xinhua news agency reporter Lin Shanchuan)
Deep ploughing of China's industry is the desire of the people
The resilience and vitality of China's economy has attracted worldwide attention. Driven by new technology trends such as digital technology, new energy, artificial intelligence, biomedicine, and big data, China is becoming an agglomerator of new technologies, new products, and new models, and its industrial advantages are attracting the world's attention.
Lo Yiu-qun, director of the Institute of Governance and Sustainable Development at the National University of Singapore Business School, pointed out that China is a key node in the global supply chain and innovation network, and cooperation with China is the direction of the world economy.
On the basis of its inherent advantages such as complete industrial categories and perfect infrastructure, China's integration into the global industrial chain has been deepening, more and more Chinese and foreign enterprises have cooperated in depth, competed on the same stage, and the advantages of agglomeration and synergy of production factors have been revealed.
Ford Has established a global strategic partnership with CATL, covering the supply of power batteries in China, Europe and North America; ZF Group, an auto parts manufacturer, has nearly 40 manufacturing plants in China, and the fourth R&D center in China broke ground in the first half of this year; AstraZeneca Global R&D China Center, a biopharmaceutical company, is located in Jing'an District, Shanghai, and will be deeply involved in global new drug research and development... These multinational companies have increased their investment in China and invariably regarded China as the strategic focus, with the intention of making full use of China's supply chain advantages and enhancing their global competitiveness.
"International car companies want us to intervene in the model planning stage, and the two sides jointly plan products, and the efficiency of technology integration is greatly improved." Wu Kai, chief scientist of CATL, said that through cooperation and mutual learning, Chinese enterprises and international car companies are conducive to the iteration of technological innovation products and jointly promote the electrification transformation of the automotive industry.
This is the Novartis booth in Switzerland in the medical equipment and health care exhibition area of the Expo on November 9, 2021. (Photo by Xinhua news agency reporter Zhang Yuwei)
Sharing China's dividend is a global opportunity
In the era of economic globalization, openness and integration are an unstoppable historical trend. Build a high-standard market system, deepen the market-oriented reform of factors, continue to relax foreign investment access, continuously optimize the business environment, and strengthen intellectual property protection... As a major trading partner of more than 120 countries and regions around the world, China embraces the world with open arms, continuously releases the opening dividend, and promotes the integration of Chinese and foreign markets and industries.
By building a national exhibition platform such as the Ciie and the CICGF, the vitality of the Chinese market has been fully demonstrated, which has effectively promoted the docking of domestic and foreign goods and services, and provided rare cooperation opportunities for Chinese and foreign enterprises.
In the first half of this year, multinational companies continued to be optimistic about China's economic prospects, and the news of increasing investment in China kept coming. Audi FAW New Energy Automobile Co., Ltd. held a groundbreaking ceremony, Volkswagen Anhui MEB plant is basically ready, pre-production vehicles will roll off the production line in the second half of the year. According to a recent report by the American Chamber of Commerce in China and the German Chamber of Commerce in China, more than 60% of U.S. companies and more than 70% of German-funded enterprises plan to increase investment in China.
Bei De Nian, President of Novartis Group (China), one of the world's top 500 companies, praised the openness, potential and business opportunities of the Chinese market, saying that China is one of the most strategic markets for Novartis Group in the world.
An emerging market power full of opportunities, an innovative country with surging momentum of development, and an open country that is open to the world bring endless opportunities to all countries in the world.
Source: Xinhua Net