Site icon YCNews

Multinational companies anchor three major roles in the Chinese market

U.S. authorities will investigate the safety of Tesla's self-driving car system

The picture shows the staff working in Tesla's Shanghai Super Factory. Photo by Ding Ting, reporter of Xinhua News Agency

Affected by adverse factors such as the COVID-19 epidemic, global trade and investment will be hit hard in 2020, the world economy has fallen into a deep recession, and enterprise development is facing huge challenges.

Despite the increased instability and uncertainty of the external environment, the development of these multinational companies in China has not stopped, but has become a highlight of the world economy this year against the background of China’s overall planning for epidemic prevention and control and economic and social development, continuous deepening opening up to the outside world, and actively relieving difficulties for foreign-funded enterprises to resume work and production. The Chinese market plays a more important role in the global business of multinational companies. Haven, innovation source and debut have become the three keywords of multinational companies’ business development in China.

Safe haven:

Drive strong performance growth

This year, the revenue of many multinational companies, including the world’s top 500, has fallen steeply. Thanks to China’s first effective control of the epidemic and the rapid resumption of work and production, the Chinese market has become the only profitable market for some multinational companies in 2020. The Wall Street Journal reported that China is a safe haven for many companies around the world.

According to the third quarter results report released by Tiffany Group, a U.S. jewelry brand, reported that Tiffany Group’s revenue fell 24% to $2.31 billion in the first nine months of this year. During the period, the group’s revenue in the United States, Japan, Europe and other regions fell to varying degrees, while the Asia-Pacific market in China became the only growth region, with revenue soaring by 30% to $382 million. The group said that the Chinese market continued to perform strongly this year, which offset the decline in Europe and the United States.

According to L’Oreal Group’s financial report for the first three quarters of 2020, according to the group’s sales fell 7.4% year-on-year during the period, but the Chinese market achieved strong growth. According to the financial report, by the end of September, the Chinese market had achieved year-on-year growth of 20.8%, far exceeding the market average. In different distribution channels and categories, the recovery speed varies significantly. Among them, the growth situation of offline channels and high-end makeup market is particularly encouraging.

According to the data released by Niqing Food Company, the controlling shareholder Niqing’s business revenue in China was 11.512 billion yen, an increase of 19.5% year-on-year, and operating profit was 1.607 billion yen, an increase of 91.6% year-on-year.

The performance of the automobile industry is particularly outstanding. The remarkable recovery of China’s automobile market has driven the strong rebound of global automobile enterprises.

According to Tesla’s “best” quarterly report, which Tesla CEO Musk called “best in history”, Tesla’s revenue increased by 39% year-on-year to $8.771 billion during the reporting period, achieving the highest quarterly revenue level in history, with a net profit of $331 million, an increase of 131% year-on-year. Among them, the Chinese market has become an important source of profits for Tesla. While handing in the beautiful “report card”, Tesla continues to clarify the target of delivering 500,000 vehicles by 2020 and pins its hopes on the Chinese market, believing that the achievement of the target will “mainly depend on the month-on-month growth of Model Y and the production of the Shanghai factory”.

According to the data released by Japan’s Honda Automobile, as of November this year, Honda’s total sales in China reached 171,000, setting a new monthly sales record for five consecutive months.

Recently, Volkswagen, BMW and Daimler, the three major German car companies, announced key investment and development plans to accelerate electrification and digital transformation in the next five years. Against the backdrop of China’s strong economic recovery, all three car companies expressed their optimism about the Chinese automobile market and actively participated in the development of China’s new energy vehicle industry.

Source of innovation:

Innovation Center accelerates the layout

China’s open market and good business environment provide fertile soil for multinational companies to deeply cultivate China, and China’s innovation atmosphere, talent resources and investment environment provide them with important opportunities to obtain a wider market and sustainable development.

On May 19, Honeywell’s Emerging Market Headquarters and Innovation Center was established in Wuhan. This is the first world’s top 500 enterprise to set up wholly-owned subsidiaries in Wuhan after the epidemic.

Following the announcement of the establishment of a digital innovation laboratory in Shanghai in March this year, Germany’s Berliner Ingelheim launched the China External Innovation Cooperation Center in Shanghai in July. The company promised to continue to increase its investment in China over the next five years, focusing on the development of a breakthrough new generation of therapies, investing in biopharmaceuticals, animal health care and health innovation.

As Starbucks’ largest productive strategic investment project outside the United States, Starbucks China’s “Coffee Innovation Industrial Park” officially broke ground on November 16. When completed, the industrial park will become one of Starbucks’ greenest and environmentally friendly coffee baking plants in the world.

On December 3, the Joint Innovation Center and Qualcomm Artificial Intelligence (AI) Innovation Laboratory, established by Zhejiang Hangzhou Future Science and Technology City Management Committee, Qualcomm (China) Holdings Co., Ltd. and China Science and Technology Innovation Co., Ltd., were unveiled and put into use in Hangzhou. The Joint Innovation Center focuses on 5G, AI, The technical application needs in the fields of the Internet of Things provide support for Hangzhou’s “double innovation” enterprises and institutions.

Meng Pu, chairman of Qualcomm China, said: “Qualcomm is very optimistic about Hangzhou’s development prospects in 5G, AI, Internet of Things and other cutting-edge industries. It hopes to continue to strengthen cooperation with Hangzhou governments and industrial partners at all levels on the basis of the Joint Innovation Center, Qualcomm AI Innovation Laboratory and accelerator projects, in order to accelerate Hangzhou and domestic partners have contributed to innovative development in the fields of 5G, AI and the Internet of Things.

First show:

New products aim at the Chinese market

With China’s scientific overall planning of epidemic prevention and control and economic and social development, it has vigorously promoted the restoration of production and living order, strengthened the market vitality, and gradually improved the relationship between supply and demand of imported goods. Especially under the special background of this year’s global fight against the epidemic, the third China International Import Expo was held offline and offline. Many multinational enterprise exhibitors scrambled to present new products of “the world’s first release, Asia’s first show, China’s first exhibition”, which fully shows that foreign enterprises in the exhibition attach great importance to the diversity of consumer groups and huge consumption potential. The Chinese market.

For example, at this Expo, ABB launched the HoverGuard UAV-borne natural gas leakage detection solution worldwide; Decanon, France, launched an inflatable kayak sports product worldwide; Panasonic Electric launched the world’s “6 Constant Gas” in combination with the demand for health products in the post-epidemic era. Waiting for the station system; Unilever, one of the world’s largest fast consumer goods companies, launched a skin-friendly series of products.

“While the epidemic is still spreading, this grand gathering of global resources and leading science and technology has shown the world China’s courage to promote a higher level of opening up to the outside world and the vitality of the Chinese market, and its results will certainly benefit the whole world.” Xiang Weiming, president and CEO of General Electric (GE) China, said.

Foreign enterprises have cast a vote of confidence in China with practical actions, and the fact that enterprises from all countries continue to be optimistic about the Chinese market shows once again that China’s concept of insisting on high-level opening up to the outside world and is committed to providing opportunities for the common development of all countries is winning more and more recognition from the international community. ( Economic Daily – China Economic Network Reporter Zhu Lin)

Exit mobile version