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(The 3rd CIIE) CIIE Observation: The CIIE reflects China’s new development pattern and promotes a higher level of interaction with the world
China News Agency, Shanghai, November 8 (Journalist Li Xiaoyu) Faced with external challenges such as the continuing global epidemic, China proposes to build a new pattern of development in which the national and international dual cycles are the pillar and the national dual cycles and internationals promote each other. From the perspective of the third CIIE, this goal will not only profoundly affect the design of multinational companies, but also promote the interaction between China and the world economy to a higher level.
Taking the domestic cycle as the main body means that China will firmly grasp the basic point of expanding domestic demand and take more effective measures to promote consumption and unlock consumption potential. The state of consumption in China’s economic structure will only increase, not decrease.
For multinational companies, this will bring new business opportunities.
Song Weiqun, Johnson & Johnson’s senior vice president and president of the China region, said in an interview with a reporter for the China News Agency that China’s middle income group has exceeded 400 million and the scale is still being developed. expanding, and the demand for efficient, high-quality medical services will also increase. In this circumstance, China has further expanded its domestic market and promoted improvements in consumption, providing a good development opportunity for medical and healthcare products companies such as Johnson & Johnson with diversified products.
Lin Jianfeng, general manager of Simmons China, also said that after the outbreak, Chinese consumers have begun to reexamine their lifestyles and pay more and more attention to the quality of sleep that determines their health and immunity. As China’s economy stabilizes and recovers, people’s incomes rise, and more consumer promotion measures are introduced, high-quality mattress brands will usher in new development opportunities.
Previous research reports indicated that the importance of “global location” will become more prominent after the outbreak. If a global brand wants to survive in different markets, it must truly become a localized brand based on a global design to establish a stronger connection with consumers.
From the perspective of this CIIE, based on China’s strategy of focusing on the domestic cycle, the business of multinational companies in China will accelerate localization in the future. In the words of General Electric (GE) China Chairman and CEO Xiang Weiming, GE will focus on China’s domestic market and deeply cultivate China at every link in the entire industrial chain.
“It is expected that in the future, companies will focus on the preferences of Chinese domestic consumers in the decision-making process, and foreign consumers will complement them,” said Xiong Yi, chief economist at Deutsche Bank China.
For Chinese consumers, this portends a better quality of life.
With the economic recovery leading the world, China has been considered by many companies as the most important and promising market. Attracting multinational companies to compete to increase their presence in China and to develop and produce according to the needs of local consumers will allow people to enjoy better products and services.
Liu Yuanchun, vice president of Renmin University of China, said that a major problem facing the economies of all countries in the world is insufficient demand. China’s efforts in the domestic cycle to harness consumption potential will help build a safe and efficient economic system and reduce the impact of external uncertainties.
Mutual promotion of national and international dual cycles provides a platform for benign interaction between China and the world economy.
Nowadays, the establishment of R&D centers and high-end manufacturing bases in China has become the choice of more and more multinational companies. These R&D and production forces are not only “in China and for China”, but “in China and for the world”. Innovations originating in China can be promoted and applied in other countries, and “Made in China” that has stood the test of the epidemic can also contribute to the stability of the supply chain of the global industrial chain.
Xiang Weiming revealed that due to unstable production in other countries affected by the epidemic, GE’s production base in China has already taken on some of the production pressure in other parts of the world. For example, in the aviation sector, the total procurement of spare parts from China now ranks first in the world.
The world’s leading innovative products will also accelerate the flow to China. Sun Jue, Managing Director of Swarovski Crystal Business Greater China, said that based on the “double cycle”, China is expected to continue to expand and open up. The company’s latest designs in Paris, Italy and elsewhere may enter China at time and blend in with local Chinese consumers. The need for more innovation.
Analysts said that under the new “dual cycle” development pattern, China’s domestic market and the international market will achieve better connectivity, and the two markets and two kinds of resources will be more efficient. This will not only benefit the quality of China’s economic development, but also benefit the world. (End up)
