China News Service, Beijing, March 25 (Reporter Xia Bin) The "top leaders" of multinational enterprises gathered here at the 2024 Annual Meeting of the China Development Forum. A group of chairmen and CEOs of foreign-funded enterprises from various fields experienced China simultaneously. Economic trends and development policies hope to tap a new round of business opportunities.
Wu Chun, managing partner of Boston Consulting Group (BCG) China, said in an exclusive interview with a reporter from China News Service when participating in the above forum that according to BCG research, in 2023, about 75% of global business leaders believe that uncertainty is what companies face. The biggest challenge. It is true that the current complex geopolitical situation, rapidly changing marketing environment, diversified and segmented consumer markets and other overlapping factors have put forward higher requirements for the development of multinational companies in China. However, as China is shifting from high-speed development to high-quality development, new opportunities are gradually emerging.
"China's emphasis on the real economy will drive major adjustments in many industries and will also bring huge development opportunities to enterprises. In the future, more windows of opportunity will be opened to technological innovation, green economy and consumption drive." Wu Chun said .
For example, she said that during this year's two sessions, the term "new productivity" was included in the government work report for the first time, and technological innovation is the fundamental driving force of new productivity. China is moving from a development stage driven by factors and investment to a new stage of innovation-driven growth, which will create a huge market space for innovation.
"Consumption" is also one of the hot words in this year's government work report. The Ministry of Commerce of China also designated 2024 as the "Consumption Promotion Year" at the beginning of the year. Wu Chun said that this series of signs fully demonstrates the macro policy direction of using consumption as the "main engine" to further stimulate the recovery of economic growth. BCG also predicts that by 2030, China will have an additional 80 million middle-class and above population, which will also provide more growth potential for the consumer market.
According to BCG estimates, in order to achieve the "double carbon" goal, China will invest at least 250 trillion yuan in total before 2050. Related green investments will contribute 2% to 3% to GDP, which will provide green solutions for various industries. Solution providers create more business opportunities.
Chinese officials recently released the "Action Plan for Solidly Promoting High-level Opening to the Outside World and Making Greater Efforts to Attract and Utilize Foreign Investment" to use practical actions to enhance the confidence of foreign investors in "increasing investment" in China.
Wu Chun bluntly said that in the context of the in-depth development of the global value chain, China is an indispensable part of the industrial chain. The continued expansion and opening of the market is a very positive signal for multinational companies, and the Chinese government is also taking more effective measures. , further opening up the domestic market, eliminating entry barriers, and creating a fair competitive environment and more cooperation opportunities for multinational companies and investors.
Wu Chun suggested that as China enters a new era of development, if multinational companies want to fully enjoy the dividends of China's economic transformation and high-quality development, they must have a deep understanding of China's relevant policy orientation and innovation ecology, adapt measures to local conditions, maximize strengths and avoid weaknesses, and formulate actions Strategy.
Specifically, on the one hand, it is necessary to clarify the positioning of the Chinese market. Wu Chun believes that multinational companies need to clarify China's positioning in their own global markets and value chains, formulate clear China strategies and implement them unswervingly. Business leaders should define up front what "Win in China" means, such as using China as an innovation hub rather than just a source of revenue. Only with clear goals can we maintain sufficient strategic focus in the face of fierce competition.
On the other hand, strengthen localization. Wu Chun pointed out that many multinational companies have been working in the Chinese market for decades, and their business models and operation teams have been localized; a considerable number of companies have also localized their supply chains, making full use of policy dividends and talent dividends. . "Currently, we have also noticed that many foreign-funded companies are localizing R&D to cope with the autonomy, rapid iteration and agile response required for innovation."
She also mentioned that multinational companies can use strategic cooperation with local companies to create more suitable and agile development methods for the Chinese market in terms of operating models, supply chains, innovation, etc., to accelerate the growth of the Chinese market. (over)