China still huge magnet for foreign investment

Photo taken on Nov. 4, 2021 shows an exterior view of the National Exhibition and Convention Center (Shanghai), the main venue for the fourth China International Import Expo (CIIE), in east China's Shanghai. (Xinhua/Zhang Haofu)

Despite recent COVID-19 epidemic, the Chinese market remains a huge magnet for foreign investment.

Leading foreign companies like Fast Retailing, Siemens Healthineers, and L'Oreal have been opening new stores, increasing investment, and launching new projects, demonstrating their confidence in China, as well as the determination to expand their presence.

At the same time, the preparations for the fifth China International Import Expo (CIIE), which is set to be held offline in Shanghai in November, are going as planned. At present, the contracted area has exceeded 75 percent of the planned exhibition area and more than 250 Fortune 500 companies and leading enterprises have confirmed their participation in the expo.

-- Eyeing potential of consumer market

With the "restart" of Shanghai, the Shanghai Jing'an IMIX Park shopping mall was bustling again with customers over the weekend. Since June 6, the stores of Uniqlo, a brand under Fast Retailing Group, in Shanghai have resumed full operation in succession. By launching its new series, Uniqlo is actively participating in the resumption of business and market in Shanghai.

To back the steady recovery of national consumption, Uniqlo plans to open 20 new stores in provinces like Yunnan, Sichuan, Anhui and Zhejiang in June. Among the new stores are the first ones in cities such as Shengzhou, Yueqing, Yongkang in Zhejiang, Huainan in Anhui, and Jingmen in Hubei. 

"We are full of confidence in and expectations for the Chinese market," said Wu Pinhui, executive officer of Fast Retailing Group and chief marketing officer of Uniqlo Greater China. Currently, Uniqlo has more than 850 stores in over 180 cities in China, she said, adding that Uniqlo will keep launching 80 to 100 stores per year, and all of them will be directly operated.

As a German skin care group boasting a history of 140 years, Beiersdorf has kept a profound bond with China for many years. Since its official entry into China, Beiersdorf's product categories in the country have expanded from 2 to more than 300 by now. At present, Beiersdorf takes Nivea (Shanghai) Co., Ltd. as the main body in China, and places the innovation center, manufacturing center and marketing center all in Shanghai.

At present, all three centers of Beiersdorf in Shanghai are in normal operation. The production capacity of the manufacturing center has been restored to 100 percent, and 95 percent of employees of its innovation center in Caohejing, Shanghai's Xuhui District, have returned to work.

"Although the Shanghai factory has been shut down for more than 20 days, the huge Chinese market has not stagnated, and consumers' demand for quality products has not diminished," said Xue Wei, general manager of Beiersdorf Northeast Asia. "As long as the Chinese market keeps opening up, and as long as consumers need us, we will move full steam ahead. From Hamburg, Germany to Shanghai, China, we are all committed to it."

Roche Diagnostics has also recently made an important step in its layout in the Chinese market by opening the official online Life Sciences Flagship Store in Casmart, with more than 100 scientific research reagents and consumables being launched.

"The official entry of Roche Diagnostics Life Sciences into Casmart marks a new milestone for localized digital transformation. In the future, we will further strengthen our customer service capabilities in one-stop solutions, and actively expand our online product portfolio, so as to achieve in-depth coverage of products in various application fields of life sciences. We will continue to explore the Chinese market and bring benefits to more customers in the scientific research, clinical and biotechnology sectors," said Yuan Jianzhong, vice president of Roche Diagnostics China.

-- Speeding up localization

Attracted by the Chinese market, industry-leading companies like Siemens Healthineers China and L'Oreal Group have recently decided to step up investment in China.

As one of the earliest medical technology companies to enter China, Siemens Healthineers China recently unveiled a new localization strategy. At the same time, the company announced that the high-profile Siemens Healthineers laboratory diagnostics factory is expected to be completed in Shanghai by the end of 2022, which will be the company's first in-vitro diagnostic reagent plant in the Asia-Pacific region. 

China is of great strategic significance to Siemens Healthineers, as it has huge potential and unique market environment, said Elisabeth Staudinger, member of the Siemens Healthineers Managing Board and president of Siemens Healthineers Asia Pacific Region, adding that Siemens Healthineers deeply integrates its global strategy and local development vision, and takes 'Healthy China' initiative as one of the important opportunities and action priorities in the new phase of Siemens Healthineers' strategy 2025. 

With an optimistic view of Shanghai and the Chinese market, L'Oreal Group has also made frequent moves recently. In early May of this year, L'Oreal announced the establishment of the group's first investment company ever in Shanghai, which followed hard on the heel of the establishment of the group's North Asia headquarters and beauty technology center in Shanghai last year.

"We have been deeply involved in Shanghai for 25 years, and our confidence in the city has never been shaken," said Fabrice Megarbane, L'Oreal's president for the North Asia Zone and CEO of L'Oreal China.

Currently, all brands under the L'Oreal Group are actively preparing for the 618 shopping festival, said Fabrice. After pressing the restart button of Shanghai, L'Oreal's employees, both in the major brand counters and flagship stores, are receiving and serving consumers in high spirits.