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HomeEnvironmentChina remains priority market for foreign enterprises-Xinhua

China remains priority market for foreign enterprises-Xinhua

* With continued large-scale investment, many foreign companies still see the world’s second largest economy as their preferred market.

*Many foreign companies see no reason to withdraw, given China’s huge market, complete industrial chain and friendly business environment.

* According to the Ministry of Industry and Information Technology, China has been the world’s largest manufacturing country for more than a decade, and the quality of its supply system has improved significantly.

BEIJING, Sept. 30 (Xinhua) — For Geoffrey Lu, president and chairman of BASF Greater China, the inauguration of BASF’s Verbund site in China earlier this month marks the largest ever. was a very exciting moment. .

“With a total investment of €10 billion (approximately US$9.8 billion), the Zhanjiang Verbund site will be BASF’s third largest Verbund site when completed.

According to Lou, the project in Zhanjiang, Guangdong province in southern China, represents a new paradigm for China’s high level of opening up and improved business environment.

A photo taken on January 21, 2022 shows a view of BASF’s Zhanjiang Verbund site in Zhanjiang, Guangdong, southern China. (Xinhua News Agency)

With continued large-scale investment, many foreign companies still see the world’s second largest economy as their preferred market.

China continues to be a hot investment destination. According to the Ministry of Commerce, foreign direct investment in mainland China was actually used, up 20.2% year-on-year, he reached $ 138.41 billion in the first eight months of this year.

China’s huge and more open market, comprehensive industrial system and friendly business environment are among the key factors behind China’s attractiveness to foreign companies.

Expansion of investment

German chemical giant BASF has played an active role in the Chinese market despite the global economic slowdown and the COVID-19 pandemic.

“BASF entered the Chinese market in 1885 and by the end of 2021 will have 31 production sites and over 11,000 employees. I’m here.

The third phase of BASF Shanghai Pudong Innovation Park, the headquarters of BASF Greater China, is expected to be completed in early 2023. By then, BASF’s total investment in the integrated site is expected to reach around €280 million.

Since 1995, global healthcare giant Novo Nordisk has invested eight times in its facility in Tianjin, northern China, to increase its local presence and better serve patients in China and around the world. has provided

Staff at a workshop at Novo Nordisk (China) Pharmaceutical Co., Ltd. in Tianjin, northern China, on September 22, 2022. (Xinhua/Li Ran)

The Tianjin facility is not only one of Novo Nordisk’s strategic manufacturing sites, it is also the sole provider of durable insulin syringes and the largest insulin production site.

In March, Europe-based Louis Dreyfus Company (LDC) held a joint venture groundbreaking ceremony in Guangzhou. It aims to cover feed protein processing, high-tech and ecological aquaculture, trade, food innovation, and plant-based clean energy production.

LDCs have benefited from China’s open policy and excellent business environment. Jerrity Chen, Head of North Asia at LDC, said:

“China is a priority market for LDCs. We continue to look for opportunities to expand our presence and production capacity to meet China’s growing demand for quality food and feed products and raw materials,” Chen added. I was.

no reason to quit

Many foreign companies see no reason to withdraw, given China’s huge market, complete industrial chain and friendly business environment.

“We never thought of leaving China,” said Huang Dongwen, general manager of the strategic planning department of Hitachi Elevator (China) Co., Ltd. Continue to attract Hitachi investment and business development.

A photo taken on September 28, 2022 shows an automated production line at Hitachi Elevator (China) Co., Ltd. in Dashi, Guangzhou, Guangdong, southern China. (Xinhua News Agency/Huang Guo Treasure)

With five elevator-wide factories in China, Hitachi Elevator has experienced strong growth over the years as China’s urbanization boosts demand for elevators. China has a huge elevator market, and in 2021, the number of elevators in the country will approach his 8.8 million units.

When the first Chinese factory in Guangzhou, the capital of Guangdong province, started production in the 1990s, it produced and sold less than 2,000 vehicles a year. In 2021, his millionth elevator will be delivered, with annual sales exceeding his RMB 27 billion (approximately US$3.8 billion).

China is one of Hitachi Elevator’s most important overseas markets, accounting for more than half of its global revenue.

Huang said the layout of China’s industrial chain will not only enable the company to respond quickly to local customer needs, but also export its products to Southeast Asia and Australia, gradually entering more markets.

The value added of China’s manufacturing sector will increase from 16.98 trillion yuan in 2012 to 31.4 trillion yuan in 2021, accounting for 22.5% to nearly 30% of the global total. According to the Ministry of Industry and Information Technology, China has been the world’s largest manufacturing country for more than a decade, and the quality of its supply system has improved significantly.

“Development in China is therefore an important engine that fuels the entire global supply chain,” Huang said.

Ma Qinghai, general manager of SMC Investment Management China Co., Ltd. (a Japanese-owned company in Beijing), said that despite the fact that China’s manufacturing capacity still has a large He said there was talk of withdrawing. and other countries.

Staff at SMC Corporation’s factory in the Beijing Economic and Technological Development Zone in Beijing, capital of China, June 4, 2022. (Xinhua/Peng Ziyang)

“China’s industrial support facilities have been established for decades. The scale is large and the supply chain has strong integrity,” Ma said. He added that most other countries have much smaller populations, so labor markets and supply chains are completely different.

“A lot of knowledge and a lot of innovation is unique to China, so some overseas factories were built with the help of Chinese people and run with the help of Chinese engineers. It is impossible to replace China in 2018,” Ma said.

LDC’s Jerrity Chen said China has world-class infrastructure and the country has given the company a lot of trust in terms of its physical infrastructure, education system, health care system and social welfare system.

“The Chinese government is very business-friendly and we can see that we have received a lot of support from the government during the pandemic,” Chen said.

According to a World Bank report, China’s business environment continues to improve, with its ease of doing business ranking rising from 91 in 2012 to 31.

market potential

On September 23, Airbus delivered the 600th A320 family aircraft assembled at its Final Asian Assembly Line (FAL Tianjin) in Tianjin.

The company opened the final assembly line for the A320 family in 2008 in Tianjin. By the end of 2021, Airbus had assembled and delivered 555 of his A320 series aircraft from its facility.

Staff at the final assembly line of Airbus’ A320 family jets in Tianjin, northern China, February 24, 2022. (Distributed by Airbus China/Xinhua)

China remains the world’s largest single market for Airbus. According to Airbus China, the country’s commercial aircraft deliveries accounted for more than 23% of its global deliveries in 2021.

George Xu, Executive Vice President of Airbus and Chief Executive Officer of Airbus China, said:

Many foreign companies share similar optimism about the potential of the Chinese market. Consumer goods giant Unilever will continue to serve Chinese consumers for the next 100 years, said Zeng Xiwen, president of public relations at Unilever China.

Unilever has been operating in China since 1923, building eight production sites and one R&D center.

A woman visits the Unilever booth at the 4th China International Import Expo (CIIE) in Shanghai, eastern China, on November 8, 2021. (Xinhua News Agency / Lu Peng)

Unilever began construction of a full-category factory in Guangzhou in August. With an investment of 1.6 billion yuan, the factory is the largest investment project in China in recent years.

When completed in 2025, it is expected to produce products in all categories, including personal care products, food, and ice cream, with an annual output value of about 10 billion yuan.

BASF’s Lu sees further potential in the Chinese market. The company’s sales in Greater China, his second largest market for BASF in the world, will hit a record high of €12 billion in 2021, accounting for around 15% of BASF’s global sales. I’m here.

“China has become the world’s largest chemical market, with over 45% of the market share. That’s why we are investing in China.” He added that it reflects BASF’s confidence in the well-established Chinese market.

(Reporting by Ma Xiaocheng, Ding Le, Lu Hao, You Zhixin, Zhang Yuqi, Guo Yujing, Li Baojie; Video reporters: You Zhixin, Sun Qing, Li Haiwei, Huang Guobao, Ding Le, Lu Hao, Ma Xiaocheng; Video editing Participants: Zhao Yuchao, Wei Yin, Liu Xiaorui, Hui Peipei, Zhang Yuhong)

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