Plenum reinforces MNCs' optimism on China

Q4 While China is expanding opening-up, some are concerned that geopolitical tensions, rising protectionism and global supply chain adjustments may weaken China's attractiveness to foreign companies. What's your take? How important will China be for your global business in the coming decade? What more opening-up measures can China take to offset the impact of the complex external environment?

LUSKIN: China represents a crucial market in Mobileye's global growth strategy moving forward. With its substantial market size, vitality and potential — alongside a strong focus on innovation and quality — China offers immense opportunities. More importantly, China is leading the world in tech-forward automotive advancements, making it an attractive market with consumers eager for the latest innovations. Mobileye's commitment to the Chinese market is unwavering and long-term. We will continue to collaborate closely with our Chinese partners, better serve our China-based customers and foster innovation and growth in the automotive sector on both local and global scales.

CHEN: We have our own presence with purchasing and logistics and a lot of co-workers in China developing the supply chain for the past 30 years. IKEA has a long history and background in China. It has been and will continue to be very strategically important for IKEA.

We see a lot of capabilities that we need, but future demand is also coming from China. Today, we really take pride in having a complete value chain in China, which is a unique quality. Today, we are also working with approximately 460 suppliers in China with whom we have a very long relationship. About 25 percent of what IKEA sells globally comes from China.

XIE: China is of significant importance to Vale. It has been our largest market since 2006 and destination of more than 50 percent of our iron ore products since 2014. Last year, it accounted for more than 60 percent of our total iron ore sales and more than 50 percent of our total net operating revenue.

China is also our critical supplier of products and services in mining, infrastructure and logistics areas. We are very proud to have also established close partnerships with many leading Chinese suppliers, which allows us to leverage the scale and technology that China's manufacturing industry has developed over the past decades. The development that Vale has achieved is inseparable from China, and our future development will also need China.

CHENG: With China's steady economic growth, the country remains a popular destination for foreign investment, especially in technological innovation, energy transition, pharmaceuticals and consumer goods. The way we look at the determinants of long-term growth potential is through the lens of innovation. When we look at the kind of investments China is making in educating its population and providing it with skills for the next round of technological waves, as well as the output by Chinese scientists, we are encouraged regarding the long-term potential of China.

China is a key strategic market for DBS, and we closely monitor the economic growth of the country. China is not just about the domestic market and local opportunities. There is also the cross-border spillover where we do a lot of business with Chinese companies internationally.

Q5 The plenary session has stressed that reform tasks laid out at the meeting shall be completed by the time the People's Republic of China celebrates its 80th anniversary in 2029. How do you expect the new reform and opening-up measures to transform the Chinese economy in the coming five years? What strategies will your company adopt to align with the expected transformation? Looking ahead, in the second half of 2024, what are your expectations for the Chinese economy? How do you think your company will fare in this evolving landscape?

LUSKIN: China's new reform and opening-up measures are expected to enhance technological innovations and strengthen the overall business landscape, making China an even more attractive destination for advanced technological investment despite the current intertwined international situation. Looking ahead, we remain optimistic about China's long-term growth and resilience. We anticipate that the evolving landscape will offer ample opportunities for Mobileye to strengthen our partnerships and drive innovation.

CHEN: In the coming five years, we anticipate that the new reform and opening-up measures will significantly transform the Chinese economy. We believe that "Made in China" and "Intelligent Manufacturing in China "will be further strengthened, reinforcing the country's unique manufacturing advantages with a robust and comprehensive industrial chain.

For the second half of 2024, we anticipate sustained growth momentum for the Chinese economy. We will maintain strategic agility, enhance internal innovation and foster external collaboration to address evolving market trends. We believe our commitment to innovation and collaboration will position us well in this dynamic landscape.

Looking ahead, IKEA will continue to leverage its long-term presence in China to contribute to and benefit from the country's economic development.

XIE: In the first half of 2024, China's GDP expanded by 5 percent, which is on track to hit its full-year economic growth target. In mid-July, the International Monetary Fund raised China's economic outlook to 5 percent, which is 0.4 percentage point higher than its previous forecast. This reflects the resilience and dynamism of the Chinese economy in a complex external environment. Despite the temporary headwinds and short-term volatilities, we see long-term development potential in the Chinese economy.

CHENG: The plenary session emphasized reform in the capital and financial markets. In addition to improving connectivity with foreign capital markets, regulators will unify existing market access and settlement systems. The Chinese government is exploring and establishing inclusive institutional arrangements compatible with a multilevel custody system. This will enable overseas institutional investors to entrust qualified local custodians for bond custody directly, or through their global custodians in the future.

DBS raised its growth forecast for China this year to 5 percent from 4.5 percent previously. We are very optimistic about the development prospects of the Chinese economy, especially considering that foreign trade picked up in the first quarter and import and export volume hit a record high, which will inject a strong impetus into the steady growth of the economy throughout the year.