Foreign firms see opportunity in ‘dual circulation’ strategy

At a time when China is rolling out a new roadmap for economic development pattern called “dual circulation”, many foreign companies view it as an opportunity to broaden their business operation in China, senior managers told the Global Times at the third China International Import Expo (CIIE) in Shanghai.

Many companies at the event were spotted looking at specific emerging industries or business opportunities, like 5G or healthcare, in the next few years, after China rolled out the 14th Five-Year Plan (2021-25) that will chart the course of the country’s development over the next five years, but will likely generate effects well beyond 2025.

Jérôme Bendell, vice president of Thales in North Asia and CEO of Thales in China, a trade visitor at the third CIIE, told the Global Times that the company “understands very well” that the Chinese government is trying to support and develop the domestic market as one of the major tasks of the “dual circulation” development pattern.

He said that the trend of China developing its consumption market “has long been set”, as he saw many foreign companies and business partners being supported by the robust growth of China’s domestic economy. “It (the strategy) probably shows that it won’t stop development and it will keep stepping up the efforts. So it’s very good for us,” he said.

Bendell said the company is aware that China is also relying on exports as another growth lever.

Judith Sun, managing director of Swarovski Crystal Business in the greater China region, told the Global Times that the company is looking forward to the rollout of government policies to stimulate home consumption as China seeks to fuel market demand both in the country and abroad.

“For example, after the free trade zone in Hainan, we hope that more commercial channels could be launched in Hainan, such as duty-free stores. We are also discussing with our headquarters about how the company can deepen participation in China’s development of the Hainan free trade zone and the Guangdong-Hong Kong-Macao Greater Bay Area, “Sun said. The company plans to open retail stores in more cities in the Pearl River Delta region, as it has found a faster-than-average business recovery there.

Paul Huang, senior vice president of Lego Group and general manager of Lego China, said at a press briefing during the CIIE that the company is reassured to know that the new circulation strategy means a more open economy.

“It lets us feel China’s determination to open up further. Also, broadening China’s internal demand makes us believe that China’s market will grow bigger, which will benefit our exploration of the domestic market.”

At the CIIE, companies are also looking for specific business opportunities as China’s economic recovery is gaining impetus. In the proposals for formulating the 14th Five-Year Plan, China stressed that its economy will make new accomplishments with enhanced innovation capabilities and more modern industry chains.

Li Ye, vice president of the greater China region at Honeywell Building Technologies, said that China’s development of 5G will give rise to the construction of the data bases, which will mean growing business opportunities for the company as Honeywell can provide products and solutions that make the operation of data bases smoother while minimize energy consumption.

Jerry Wang, president of Seimens Healthineers China, told the Global Times that reform, innovation, and high-quality development are given high priority in the new 14th Five-Year Plan, and the company looks forward to working with the Chinese healthcare industry to actively explore new diagnosis and treatment recipes, as well as form local R&D teams to develop products needed by Chinese hospitals.

Source: Global Times