Rising number of MNC participants at CIIE shows opening-up policy bears fruit

The sixth China International Import Expo, which kicked off on Sunday and will conclude on Friday in Shanghai, has grown into a showcase for the country's opening-up policy, with multinational corporations using the world-class platform to reinforce their commitment to the world's second-largest economy.

Despite challenges created by the COVID-19 pandemic, they have been keeping their date with the annual gathering of companies, governmental officials, industry players, news media and consumers from around the world.

Data from China's Ministry of Commerce showed that participants from more than 150 countries and regions, as well as international organizations, are participating in this year's expo, bringing the number of both exhibitors and professionals attending the event to the pre-COVID levels of over 3,400 and 394,000, respectively.

There are companies that have participated multiple times or are making their CIIE debut this year. Around 200 global corporates from different countries and industries — food, agricultural products, automobile, intelligent industry, information technology, consumer goods, medical equipment, healthcare products and trade in services — are participating for the sixth straight year in the CIIE.

Renowned names among them include life science major Bayer AG, pharmaceutical giants Takeda, Roche and GSK, smart tech provider Johnson Controls, farm product suppliers Silver Fern Farms and Zespri, and furniture conglomerate Ikea.

Participating corporates have said they expect the CIIE to continue to help them gain more access to the vast Chinese market and bolster global openness and cooperation.

"Bayer has been active in China for more than 140 years, and we have participated in this expo ever since it started in 2018," said Bill Anderson, CEO of Bayer AG.

As an exchange for products and ideas, the CIIE's importance cannot be overstated, Bayer said.

Anu Rathninde, president for the Asia-Pacific region at Johnson Controls, said the expo bridges China and world markets.

Johnson Controls and the CIIE are like "old friends, always with a sense of fresh excitement", Rathninde said. "For me, the CIIE is a great platform to better understand ourselves and the Chinese market. I saw the openness and diversity of the CIIE, where advanced thoughts, great ideas, local manufacturing and innovative technologies from China and abroad collide to create infinite possibilities."

New Zealand-based Zespri, the world's largest marketer of kiwifruit, sees the expo as a great opportunity to connect with a whole lot of new customers and Chinese fruit industry players.

"The CIIE provides Zespri with a great platform for our senior executives to visit the market, to get together with our key customers and other industry partners, and to share in the latest trends and developments coming out of New Zealand. We've found the conversations and willingness to engage on important issues really encouraging and worthwhile," said Daniel Mathieson, CEO of Zespri.

Even Fortune 500 companies that have not participated in all the six expos held so far expressed their strong commitment to the Chinese market. For instance, French luxury giant LVMH, a four-time participant, said the CIIE is one of the most anticipated annual events for the company in China.

"We see the CIIE as an important opportunity to intensify the company's relationship with China and Chinese consumers. As a powerful symbol of openness and international cooperation, the expo offers us an unrivaled platform to showcase the richness and exclusivity of our products, while aligning our ambitions with the Chinese authorities' vision of opening up the domestic market," said Ludovic Watine-Arnault, LVMH's chief of delegation for CIIE 2023.

In the past, besides helping MNCs exhibit goods and services, the CIIE had turned their exhibits into successful commodities, generating healthy cash flows for their businesses in China.

"At the fifth CIIE last year, Silver Fern Farms launched the full range of its grass-fed branded retail packaged venison products for the first time in China. With that, our venison is available in smaller sizes suitable for home cooking, bringing this new low-fat, high-protein, healthy and versatile choice directly to Chinese consumers. Our frozen venison products have been successfully introduced to most outlets in Sam's Club national network and on JD Pop store," said Dave Courtney, chief customer officer of SFF, a New Zealand-based firm.

He said this year SFF is showcasing two new delectable ready-to-cook dishes using its natural premium grass-fed venison, tailored for the Chinese market, together with its local strategic partners. It is also introducing retail samples of New Season Grass-fed Beef in China.

The CIIE's real impact goes beyond the event duration, MNC executives said. "We hope to seek feedback from the Chinese market and explore an impactful marketing strategy to launch products in the future," Courtney said.

Takeda, another six-time participant, is using the CIIE to accelerate the introduction of its innovative healthcare solutions in the Chinese market. It has launched 10 products in the Chinese market over the past three years and expects to launch a few more products in the coming years, said Ramona Sequeira, president of the global portfolio division at Takeda.

In 2020, Takeda planned to launch more than 15 innovative products in China by 2025. To date, more than 10 such products have been approved, and seven are included in the National Reimbursement Drug List.

Spanish fashion retail giant Inditex, a four-time participant, said its brand Zara is once again appearing at the consumer goods exhibition area of the expo, thus giving the lie to rumors that fashion brands are exiting China.

Eugenio Bregolat Lukashov, managing director of Inditex Greater China, said: "We believe in the power of fashion as a positive force, and we are committed to constantly innovating and driving change in the industry, with the aim of creating value to our customers and the society we live in.

"China has always been a strategic market for Inditex and Zara, playing an important role in the development of the global fashion industry," he said.

Watine-Arnault from LVMH expressed confidence about China's luxury market. "China has confirmed its position as a leader in the consumption of luxury goods. China represents a significant and solid share of demand for high-end products, driven by a new generation of Chinese consumers seeking authenticity, quality and unique experiences.

"We are resolutely optimistic about the Chinese luxury goods market. As well as being one of the world's most important consumer markets, China is a strategic investment partner for the future. Events like the CIIE, which strengthen collaboration and trade, reinforce our conviction that the future of luxury in China is bright and promising."

Small wonder, many participating MNCs have already booked a seat for the next CIIE. In June, when the CIIE Bureau, the expo's organizer, organized the launch and signing ceremony for the seventh CIIE, as many as 25 MNCs signed contracts to exhibit at the event, committing to a total exhibition area of nearly 10,000 square meters. Mining giant Rio Tinto did even better: it signed a long-term agreement (2024-28).

Shiseido Group Chairman and CEO Masahiko Uotani said: "This year, the global economy is returning to growth in an uncertain environment. As a fast-growing economy and an important engine for global growth, China demonstrates the magnificent scale and potential of its economy and consumption, directly benefitting many multinational companies.

"While successfully driving its own development, China has also contributed to the global economy through high-quality platforms, such as the CIIE."

Going forward, Shiseido will further deepen its presence in the market, promote local innovation and share opportunities with its partners, Uotani said.

More MNCs are expected to follow suit, more so because the Chinese government announced on Oct 18 that it "will remove all restrictions on foreign investment access in the manufacturing sector", creating a better business climate overall.

Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation in Beijing, said the Oct 18 announcement, as well as the CIIE's success so far, clearly indicate that China's reform and opening-up policy will open the doors to foreign investors wider and wider.

In the next step, China will likely further optimize its business environment, stabilizing market expectations, offering foreign companies more opportunities to innovate, helping them to strengthen collaborations with local companies, and consolidating supply chains, he said.