The sixth China International Import Expo (hereinafter referred to as “CIIE”) will be held at the National Convention and Exhibition Center (Shanghai) from November 5 to 10, 2023, with the theme of “New Era, Shared Future”. More than 70% of foreign companies will increase the layout of China’s supply chain, and improve the digitalization of supply chain processes as their primary plan.
In this regard, the “Overseas Enterprises Look at China 2023″ survey report specially customized for the CIIE released by HSBC recently shows that, encouraged by China’s economic recovery after the epidemic, more than 80% (87%) of the overseas enterprises surveyed said they would expand their business layout in China. China’s manufacturing advantages, the size of the consumer market and opportunities in the field of digital economy and sustainable development are the main driving forces to attract overseas enterprises to increase their layout.
The survey was conducted among more than 3,300 companies in 16 major markets, covering the world’s major economies, including those currently operating in the Chinese market or planning to do so.
The survey also shows that overseas enterprises regard supply chain, technology and innovation, and digital capabilities and platforms as the top three investment priorities in the Chinese market in the coming year. In addition, opening new product lines or upgrading existing product lines, enhancing overall sustainability, and hiring and upgrading staff skills are also key investment areas.
In this regard, Yunfeng Wang, President and Chief Executive Officer of HSBC Bank (China) Limited, said: “In a complex and volatile global economy, high inflation, weak growth and supply chain risks remain common concerns for overseas companies. The continued recovery of China’s economy, its large scale market and deeply integrated supply chain and other fundamental advantages make the Chinese market continue to attract the attention of global enterprises. In the future, with the continuous advancement of China’s high-quality economic development, especially the huge potential of new economy industries and low-carbon transition, more global companies will benefit from the growth opportunities of the Chinese market.”
More than 70% of foreign companies will increase the layout of China’s supply chain.
The HSBC survey report shows that China still maintains a core position in the global supply chain, and the majority of overseas enterprises surveyed show a positive attitude towards expanding the layout of China’s supply chain.
The survey report also shows that more than 70% (73%) of the surveyed enterprises expect to increase their supply chain layout in China in the next three years, of which a quarter of enterprises expect to increase significantly. Southeast Asian companies are particularly interested in increasing their supply chains in China, especially those from Indonesia (92%), Vietnam (89%) and the Philippines (87%).
According to the report, manufacturing companies are particularly active in expanding their supply chain presence in China, with about three-quarters (74%) planning to increase their supply chain presence in China over the next three years, with the highest proportion of respondents in the food and beverage industry (86%). In addition, services, mining and oil, construction, and wholesale and retail trade have also indicated plans.
While increasing the layout of China’s supply chain, overseas enterprises said that they will continue to improve supply chain management in the next three years, among which the digitalization of supply chain processes is their primary plan.
The green industry has attracted the attention of overseas enterprises
The rapid rise of China’s green industry in recent years has also attracted the attention of overseas companies.
According to public information, green industry refers to the active use of clean production technology, the use of harmless or low-harm new processes, new technologies, vigorously reduce raw materials and energy consumption, to achieve less input, high output, low pollution, as far as possible to eliminate the emission of environmental pollutants in the production process of the industry.
According to the HSBC survey, renewable energy (42%), electric vehicles (41%) and energy-saving products (40%) are the sectors with the greatest growth potential in China’s green and low-carbon transition. French companies are the most bullish on sustainable waste management and clean transport.
In addition to being optimistic about China’s green industry, the surveyed companies are also actively promoting the sustainable development of their China operations. More than half (55%) of respondents plan to offer greener, low-carbon products in the Chinese market, and nearly half plan to improve the energy efficiency and emission reduction of their production facilities or office buildings (49%) or improve the sustainability of their operations (48%).
When it comes to the types of green and low-carbon products to offer in the next 12 months, respondents generally focus on offering environmentally friendly and energy-saving products (52%), recyclable products (45%) and products using sustainable raw materials (44%). Respondents in the United States and Germany are more likely to guide consumer behavior by providing incentives for consumers to buy green products and services.
In addition, China’s strength in the field of technology is also recognized by overseas companies. According to the report, one-third of the surveyed companies believe that China is leading in e-commerce, and a similar proportion believe that China is leading in artificial intelligence and machine learning, and digital payments.
The size of the Chinese market also makes it an ideal market for many overseas companies to develop and test new technologies and products, with nearly four in 10 (39%) of the overseas companies surveyed saying they chose China as the launch location for new products because of the large size of the Chinese market and the possibility of large-scale marketing. In addition, more than eight in ten (88 percent) surveyed companies said that China’s booming digital economy has opened up new business opportunities for them.
Post time: Nov-08-2023