Plenum reinforces MNCs' optimism on China
Q2 In your view, how will the reform and opening-up measures rolled out at the plenum help strengthen the Chinese economy and bolster its prospects of achieving modernization? Do you think China's new reform and opening-up blueprint will make fresh contributions to the global economy? If yes, how?
LUSKIN: China's new reform and opening-up blueprint is poised to make substantial contributions to the global economy. By expanding market access and promoting international collaboration, China will create new opportunities for both domestic and foreign players. This inclusive approach is expected to drive growth across various industries, including the autonomous driving sector, especially given that electric vehicles are among the "new three "of China's exports.
We at Mobileye believe these reforms will enhance China's ability to innovate, empowering Chinese automakers to lead in technological advancements on a global scale and contribute significantly to the global economy. Mobileye is excited to be part of this transformative journey.
CHEN: The recent plenum emphasized advancing high-level technological self-reliance and strength, accelerating the establishment of institutional mechanisms to promote the development of the digital economy, and improving the policy system to promote the industrialization of digital industries and the digitalization of industries.
One of the advantages of working closely with our Chinese partners is the remarkable innovation, speed, knowledge, experience and competence in digitalization. For instance, in manufacturing — where automation is increasingly essential — Chinese industry leaders stand out for their rapid adoption and high levels of automation in production. This is crucial for IKEA as it helps improve efficiency and lower costs.
China, as the world's second-largest economy and the largest manufacturing hub, has unique advantages due to its large population base, economic scale and robust industrial foundation. China's production capacity is designed not only to serve its domestic market, but also to meet global demand. This means any innovation in China benefits not only the country itself, but also the broader global economy.
XIE: The new reform and opening-up blueprint will definitely contribute to the global economy, as it has injected fresh growth momentum into the economy. According to an analysis made by the International Monetary Fund, a 1 percentage point increase in GDP growth in China leads to a 0.3 percentage point increase in growth in other Asian economies, on average.
It is noteworthy that in the country's new blueprint, China promises to unilaterally open its doors wider to the world's least developed countries. This once again demonstrates China's responsibility and commitment as the world's second-largest economy, which is very admirable and will definitely benefit the global economy.
We believe that with a solid foundation for industrial development and growing domestic demand, China will continue to be an important engine of global growth.
CHENG: Taking a long-term view, the Chinese government is trying to restructure and remodel the Chinese economy for high-quality, sustainable growth. For instance, one important discussion topic of the third plenum was about advancing the cultivation of "new strategic industries". According to International Data Corp, China's AI-related hardware, software and services markets are expected to grow by 15.1 percent, 32 percent and 28.5 percent from 2021 to 2026, respectively. Strategic emerging sectors like these are vital for powering China's innovation-driven growth.
China is a major driver of growth in Asia and the world. We will continue to support China's real economy and its high-quality growth. We will beef up our support for China's inbound and outbound flows and capitalize on existing and emerging opportunities.
