(Financial World) Why has China become a bright spot in the performance of multinational companies?
China News Agency, Beijing, February 22 (Reporter Li Xiaoyu) The global economy is still cold, but many multinational companies have ushered in "spring" in China.
The latest series of financial reports show that Merck's pharmaceutical business sales revenue in 2021 will exceed US$42.7 billion, a year-on-year increase of 17%, of which China's revenue will exceed US$4.2 billion, a year-on-year increase of 60%; Lilly China's revenue growth rate is the company's global business. Revenue growth has more than tripled; Bosch’s sales in China in 2021 will increase by 9.1% year-on-year, a record high; Skechers will achieve sales of US$6.29 billion in 2021, reaching a historical high. Among the international wholesale business, China The market surged 35%.
The main reason why China has become a bright spot in the performance of many multinational companies is that China's economy has further recovered and consumption has become increasingly active, providing foreign companies with a stable and broad market at a time when the global economy is uncertain.
According to official data, China's economic growth rate in 2021 will be as high as 8.1%, ranking among the top of the world's major economies; the total economic volume will exceed 110 trillion yuan, ranking second in the world, accounting for more than 18% of the global economy.
China's continued expansion of opening up and improved business environment are also one of the reasons for the rapid growth of foreign companies' performance in China.
In recent years, China has continuously reduced the negative list for foreign investment access, opened up more sectors of the manufacturing and service industries to foreign investment, implemented the principle of competitive neutrality, and ensured that foreign companies enjoy the same treatment as domestic companies, giving foreign companies new "nuggets" possible.
The performance of Piaohong has made multinational companies more willing and confident to deepen the Chinese market.
According to the September 2021 survey by the American Chamber of Commerce in Shanghai and PwC China, 78% of the 338 companies surveyed said they were "optimistic or slightly optimistic" about their company's business outlook for the next five years, nearly 10% higher than a year earlier. 20 percentage points; the proportion of companies feeling "pessimistic" dropped by 8 percentage points.
According to official data, in January 2022, China's foreign investment increased by 11.6% year-on-year, nearly three times the growth rate of the same period last year.
Analysts believe that when the global economy is facing multiple downside risks such as escalating geopolitical tensions and the spread of the epidemic, and the recovery is more fragile, it is expected that more foreign companies will bet on China to get rid of the impact.
This is not only beneficial to the high-quality development of China's economy, but also has practical significance for preventing the supply chain from further de-globalization.
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