Integrated market expands consumer horizons

Editor's Note: As China launches its 15th Five-Year Plan (2026-30), policymakers are strengthening coordination between the "Export to China" and "Shopping in China" campaigns. The effort signals a clear commitment to expanding imports while promoting high-quality consumption. To explore what this means for global business, we invited executives from multinational corporations to share their perspectives on the opportunities in China's vast market, the role of their China operations in global strategy, and their outlook for the years ahead.

Q1 China's GDP grew 5 percent in 2025, reaching 140.19 trillion yuan ($20.29 trillion). For 2026, the government targets growth of between 4.5 percent and 5 percent, with a planned deficit ratio of around 4 percent. How do you assess the credibility and policies backing this target? Amid moderating global demand, what does China's relative growth certainty mean for your company's global capital allocation, earnings outlook and investor expectations? Does the combination of proactive fiscal policies and accommodative monetary measures reinforce your confidence in sustaining or expanding operations in China?

MA: This growth target provides confidence to the global economy and highlights the resilience and resolve of China's economy in navigating challenges and sustaining steady development. As 2026 marks the opening year of the 15th Five-Year Plan, Chinese modernization and high-quality development will further accelerate.

The upgrading of advanced manufacturing, wider adoption of new energy and the green, low-carbon transition will continue to unlock significant opportunities. As a global automotive technology supplier, Forvia has long focused on core areas including seating systems, smart cockpits, sensors, automotive electronics and hydrogen solutions, which are highly aligned with these development priorities.

MADARANG: China's economic resilience continues to give us confidence in our ability to grow and expand in the country. Our actions in China reflect a deep and growing commitment to this market, and that commitment is grounded in the stability and policy support we see here.

In addition to accelerating our product innovation in the country, we have been expanding our partnerships with the auto manufacturers and partnering with them as they introduce new models, particularly electric vehicles, into the market. We have been enriching the way we reach and engage consumers through new sales channels like e-commerce, short video platforms and new retail formats as a way to enhance the experience that we offer our consumers.

LUCIONI: China's growth target places greater emphasis on quality and consistency. It is this predictability that underpins long-term value creation. The policy architecture supporting the target — including proactive fiscal measures, an accommodative monetary stance and continued support for domestic demand — gives it strong credibility and reinforces confidence in the stability and coherence of China's macroeconomic framework.

For our brand, China remains one of the most important markets in our global portfolio, and that confidence is clearly reflected in our performance. We have delivered double-digit growth in China for three consecutive quarters.

KOH: We believe the growth target set by the Chinese government for 2026 demonstrates strategic resolve and a pragmatic approach amidst a complex global economic landscape. The policy direction emphasized in the Government Work Report, including "building a strong domestic market", "advancing the development of a unified national market", and explicitly supporting "modern logistics" and other producer services, translates directly into more dynamic commercial circulation and greater goods flow. This creates a sustained environment for growth in our sector. We are also encouraged by the commitment to expanding market access, creating a more convenient business environment and broadening opportunities for foreign enterprises. We believe this will help further empower our growth in China.

Q2 In 2025, China's exports rose 6.1 percent, newly established foreign-invested enterprises increased by 19.1 percent, and research and development intensity reached 2.8 percent of GDP. Against the backdrop of global supply chain reconfiguration, is China's role in your global strategy expanding? How do you evaluate China's integrated advantages — manufacturing depth, innovation capacity, infrastructure and market scale — in supporting your production networks and supply resilience? Does China function primarily as a market, a production base, an innovation hub, or increasingly all three within your corporate architecture?

MA: China is the world's largest automotive market and a technology leader, playing a central role in the global transformation of the auto industry. At our latest global capital markets day, Forvia introduced the next-generation development blueprint, with a clear focus on technological innovation and sustainability, particularly in electrification and intelligent mobility. China is positioned as a long-term strategic priority within this framework. For us, China is not only a key market, but also a critical pillar of our global manufacturing footprint, innovation system and supply chain coordination. We remain committed to our principle "Innovation: China for China and China for global", advancing in step with the Chinese auto market.

MADARANG: For Goodyear, China is not just a market or a production base. It is increasingly all three — a vibrant market, a competitive manufacturing base and an innovation hub.

As a market, China is central to our growth strategy. In 2025, we announced our partnership with BYD to be the exclusive original equipment tire supplier for several of its products.

On the manufacturing side, we currently operate three factories in Dalian, Liaoning province, Kunshan, Jiangsu province, and Qingdao, Shandong province, along with two development centers in Dalian and Kunshan with 4,000 employees across China. We also leverage China as an export platform, supplying tires from our Chinese plants to other countries.

LUCIONI: As one of the most dynamic consumer markets, China is not only a key growth engine for us, but also a critical pillar of our global strategy. In this highly digitalized environment, consumer feedback is immediate and younger demographics play a central role. The sophistication, creativity and pace of Chinese consumers often place insight at the forefront of innovation, shaping how we think about products, storytelling and engagement. Increasingly, the capabilities and learnings we have built in China are informing and strengthening our global operating model.

KOH: In a global supply chain landscape that is increasingly diversified, China's comprehensive industrial ecosystem, strong supportive capabilities and thriving innovation ecology provide a solid local foundation for FedEx's growth in China. It also delivers robust support for global business coordination and sustainable development.

Through our six gateways across China, we connect Chinese customers with cross-border markets through our extensive global network. We are deepening our European footprint, strengthening China-Europe routes, and upgrading our Asia-Pacific network to respond nimbly to shifts in global trade flows and to reinforce connections with key markets such as Europe and Southeast Asia.

We will continue to enhance a smarter, more efficient and sustainable network to help translate the country's domestic demand into new global trade momentum.

Q3 China is advancing its unified national market, with an urbanization rate of 67.9 percent and total retail sales surpassing 50 trillion yuan. As domestic demand expands, what structural opportunities does this vast, increasingly integrated market present for your portfolio, distribution channels and localization strategy? Does deeper market unification reduce operational fragmentation and compliance costs? How do you position your brand and product mix to capture demand from both top-tier cities and fast-growing lower-tier markets?

MA: On the demand side, the unified national market offers consumers a broader range of choices. On the supply side, it encourages companies to continuously innovate and enhance the quality of products and services. As the penetration of new energy vehicles continues to increase, the industry is moving from rapid scale expansion to a stage centered on quality improvement. Product safety has become a key factor for the sustainable development of the sector. Forvia adheres to stringent quality standards, upholding safety across the entire process from R&D to production. With reliable products and disciplined quality management, we support the high-quality development of China's NEV industry.

MADARANG: China's expanding domestic market — and the scale it offers — present opportunities for Goodyear, and we are capturing them through product innovation, channel expansion and continuous localization.

From a product standpoint, we have been introducing our latest and best products for the China market to meet the diverse and evolving needs of our Chinese consumers. In terms of our distribution focus, we are focused on expanding coverage as well as assortment in big cities where there is a higher concentration of luxury vehicles, SUVs and EVs. We are also working to expand our reach into lower-tier cities where new car sales are growing faster and making sure that we are offering the right products tailored to local demand.

LUCIONI: Coach has been present in China for more than 20 years and has steadily expanded its local footprint. Today, we operate over 350 stores across more than 90 cities, with plans to further extend our retail presence over the next three years. The scale and diversity of the market allow us to manage our portfolio in a more systematic way. We are able to build globally consistent core products and iconic franchises, while continuously introducing designs and collections that respond to Chinese consumers' growing demand for self-expression, personalization and emotional connection. The highly developed digital ecosystem, combined with an expanding physical retail network, provide a strong foundation for true omni-channel operations. By deeply integrating digital platforms with brick-and-mortar stores, we create a seamless consumer experience — using real-time insights from online engagement to inform merchandising and instore services, while building our physical assets as hubs for brand experience and community interaction.

KOH: Domestic market consumption dynamism is driving demand for high efficiency and stable international logistics, particularly in areas like cross-border e-commerce and advanced manufacturing. From parcels to freight, we are a one-stop shop for reliable global delivery and smart digital solutions that help our customers streamline their supply chains and grow their businesses. We will further expand and enhance our logistics network across China by investing in infrastructure, providing customized solutions and extending our reach to second and third-tier cities.

Q4 China's trade-in program generated over 2.6 trillion yuan in sales in 2025, alongside the "Shopping in China" and "Export to China" initiatives. China's exports grew 6.1 percent year-on-year. How is your company aligning its China strategy to capture both domestic consumption upgrades and export-oriented opportunities? Do you see China increasingly as a global production and innovation base serving international markets? How are you balancing local demand expansion with China's role in your global export ecosystem?

MA: As pro-consumption policies continue and the trade-in program expands, automotive demand is steadily being released, and the consumption structure is upgrading. Chinese consumers are showing growing demand for electrified, intelligent, personalized, and sustainable mobility. In response, Forvia is strengthening its local R&D capabilities while leveraging global technology synergies to accelerate the launch of innovative products in China. At the 2025 Shanghai Auto Show, we presented nine global premieres. Some of these innovations were specifically tailored for the Chinese market and are now being introduced to other markets, enabling China's innovation to serve globally. At the same time, Forvia is actively contributing to the high-quality global expansion of Chinese automotive brands, supported by our strong technical expertise, comprehensive global footprint and long-term partnerships with Chinese automakers.

MADARANG: We see China not only as one of our most important markets, but as a strategic innovation and production base serving the entire Asia-Pacific region. This approach has deep roots. Goodyear was the first foreign tire manufacturer to enter China in 1994. Today, we have grown our China business which serves to anchor our regional operations. Our development centers in Dalian, Liaoning province and Kunshan, Jiangsu province, serve as Goodyear's primary innovation hubs for the entire Asia-Pacific region. On the domestic consumption side, we are capturing China's ongoing consumer upgrade with our power lines satisfying their needs for safety, speed and comfort.

LUCIONI: China's expanding middle income group and evolving consumer preferences are driving demand for higher quality, more expressive and more personalized products. Our China strategy is firmly consumer centric, focused on capturing this upgrade in demand through localized product development, omni-channel engagement and deeper cultural relevance. Continued investment in digital tools, consumer insights, and retail capabilities enables us to respond more quickly to changing demand and to scale successful concepts efficiently across the market. At the same time, China is becoming an increasingly important hub for innovation, speed and operational capability within our global ecosystem.

KOH: The parallel strategies of "Shopping in China" and "Export to China" reflect the new development pattern of China's dual circulation of coordinating domestic and external demand. FedEx is a firm supporter and advocate of global trade. We recognize the significant trade-development trends these two strategies embody and remain focused on serving the Chinese market and supporting all of our customers in China. We will also leverage the power of digitalization and strengthen our integrated capabilities in professional customs clearance services and sustainable development — empowering local businesses to capitalize on global trade opportunities through our efficient, flexible and intelligent logistics services and solutions.

Q5 China last year reduced energy intensity by 5.1 percent, raised the nonfossil energy share to 21.7 percent, and expanded new-type energy storage capacity beyond 130 gigawatts. Artificial intelligence and advanced technologies remain at the forefront globally. Where do you see the strongest partnership potential in China's green transition and AI-driven industrial upgrading? Are you expanding investment in renewables, digitalization, smart manufacturing, or carbon management solutions? How central is China to your global sustainability roadmap and next-generation technology deployment?

MA: Green development is the foundation of high-quality growth. The rapid rise of new energy vehicles is a vivid example of how green transformation is driving industrial upgrading in China. For us, the green transition is not a cost burden, but an accelerator of innovation and efficiency gains. We continue to optimize our operations. Our Yancheng plant in Jiangsu province became the first "Lighthouse" plant in the automotive parts industry, and our green factories in Wuxi, Jiangsu, and Xi'an, Shaanxi province, serve as benchmarks, demonstrating our long-term commitment and competitiveness in China, while supporting green transformation and high-quality development. At the same time, AI is expanding possibilities in human-vehicle interaction. We place AI at the core of our strategy, applying it to optimize algorithms, enhance efficiency, improve product performance, shorten development cycles and reduce costs.

MADARANG: Our investments in renewable energy in China have been pivotal. At our plant in Dalian, we completed what was at the time our largest solar panel installation in 2023. Building on this, we commissioned a 12.3-megawatt solar project at our Kunshan plant in 2025. Goodyear's investment in artificial intelligence and emerging technologies positions us as a leader in the tire industry, providing a distinct advantage over our competitors. We have embraced AI to enhance our product offerings, particularly through innovations like intelligent tires, which are equipped with sensors that can monitor tire health and road conditions in near real-time. These data are processed using advanced algorithms to optimize performance and safety, supporting the transformation of the mobility ecosystem like robotaxis.

LUCIONI: Our group has a clear sustainability strategy — "Fabric of Change". We are bringing the circularity concept closer to consumers' daily lives by creating responsible products and experiences. On the other hand, through continuous collaboration with universities, young creative forces, and local partners, we aim to extend sustainability from brand actions to a more vibrant industry co-creation and cultural practice. We hope to establish truly valuable and meaningful connections with the next generation of consumers, making responsible fashion a long-term, sustainable relationship.

KOH: At FedEx, we have an ambitious goal to achieve carbon-neutral operations globally by 2040. In support of China's sustainability transition, we integrate our goals with local practices. Through technological innovation, we are advancing electric vehicles and renewable facilities, while continuing to support public welfare and corporate social responsibility initiatives in this area. Leveraging the power of technology, FedEx is working to make supply chains smarter for everyone. We continue to invest in digital solutions, supporting Chinese customers as they expand into overseas markets. We have also deployed new technologies such as AI-driven sorting robots and automated guided forklifts to increase operational efficiency and workplace safety.