China’s economic recovery provides support for multinational enterprises to balance global business development

During the National People’s Congress and the National People’s Congress in 2023, the topics of China’s expected economic growth goals, as well as how to further open to the outside world and attract and utilize foreign capital with greater efforts, have attracted the attention of the international community.

“In this year’s government work report, the Chinese government emphasized the importance of ‘stability’. In general, China’s GDP growth target of about 5% is very prudent and practical.” Dai Pu, co-president of Roland Berger Global Management Committee, said in an exclusive interview with China and Singapore Finance and Economics that the relevant implementation measures proposed by the Chinese government will bring a higher level of openness, convenience, and equality to foreign-funded enterprises in China, Improve the confidence of enterprises in the Chinese market.

“The Chinese government has stressed the importance of ‘stability’.”

China has set the expected target of economic growth this year at about 5%.

In response, Dai Pu said that the outside world has various forecasts for China’s economic growth in 2023, from a relatively conservative 4% to 5%, to a more optimistic 5% to more than 6%. “On the whole, I think China’s GDP growth target of about 5% is very prudent and practical.”

He said, “Since 2023, we have felt that the overall market sentiment is significantly higher than that of last year. China’s manufacturing PMI soared to 52.6% in February. At the same time, in January of this year, the medium and long-term loans of enterprises (institutions) increased by 3.5 trillion yuan, releasing a signal of a significant recovery in enterprise-side economic activity.”

Dai Pu believes that China’s economy still faces many challenges. Since the fourth quarter of 2022, global market demand has slowed down and there is still uncertainty. In addition, the recovery speed of domestic the demand side is relatively slow. Therefore, in this year’s government work report, China emphasized the importance of “stability”.

“It is very important to restore and enhance corporate confidence”

Dai Pu believed that the overall objectives, development direction, and prioriti, es of the Chinese government work report play an important role in guiding the short-term development of the market.

“Especially this year, due to major changes in policy and business environment, the market has shown higher expectations for China’s NPC and CPPCC this year. Thet work report has brought some stability in an uncertain environment, which is very important to restore and enhance corporate confidence, including foreign-funded enterprises.”

Dai Pu said that in the short term, this year’s investment data in China will be affected to some extent by the uncertainty of 2022, reflecting the investment decisions made last year.

“But in the medium and long term, especially in the macro situation of the continuous slowdowncontinuedobal economy, China’s GDP growth target of about 5% is still higher than that of many global markets, and China’s economic recovery can provide support for multinational enterprises to balance global business development. At the same time, the expected CPI growth rate of about 3% in 2023 (China’s CPI growth rate of 2% in 2022) also indicates expanded domestic demand.”

“With the introduction of more supportive policies by the Chinese government and the fundamentals of China’s strong economy, we believe that the Chinese market will gradually recover and maintain the strong attraction of foreign investment.”

“The Chinese market is gradually becoming an important source of innovation”

The work report of the Chinese government has made it clear in this year’s work priorities that greater efforts should be made to attract and utilize foreign capital. We will expand market access and strengthen the opening up of the modern service sector. We will implement national treatment for foreign-funded enterprises. Do a good job in the service of foreign-funded enterprises and promote the implementation and construction of foreign-funded landmark projects.

In response, Dai Pu said that in the past few years, the epidemic has brought certain difficulties to the economic activities of many enterprises, which has also triggered discussions on China’s positioning in the global market and its impact on new investment decisions.

“However, in January of this year, Roland Berger found that China is still a very important market for many foreign-funded enterprises, and the Chinese market is gradually becoming an important source of innovation, which can strengthen and supplement the overall global competitiveness of many enterprises.” Dai Pu stressed that in totter adapt to the Chinese market, Many foreign investors regard “localization” as one of the important strategies of enterprises, which will create higher economic vitality, better innovation an,d growth investment.

“Therefore, we believe that the relevant implementation measures proposed by the Chinese government will bring a higher level of openness, convenience, and equality to foreign-funded enterprises in China, and enhance their confidence in the Chinese market. We believe that foreign investment will remain an important part of the Chinese economy, and will also bring more market opportunities to foreign-funded enterprises with China’s future sustainable development.”

中国经济恢复为跨国企业平衡全球业务发展提供支撑

2023年全国两会期间，中国经济增长预期目标，以及如何进一步对外开放、更大力度吸引和利用外资等话题被国际社会热切关注。

“在今年的政府工作报告中，中国政府着重强调了‘稳定’的重要性。总体来看，中国设定的5%左右的GDP增长目标是非常慎重和实际的。”罗兰贝格全球管委会联席总裁戴璞在接受中新财经专访时表示，中国政府提出的相关实施举措，将为在华外资企业带来更高水平的开放、便捷性和平等，提升企业对中国市场的信心。

“中国政府着重强调了‘稳定’的重要性”

中国将今年经济增长预期目标定为“5%左右”。

对此，戴璞表示，外界对于中国2023年经济增速有多种预测，从相对保守的4%到5%，到较为乐观的5%到6%以上。“总体来看，我认为中国设定的5%左右的GDP增长目标是非常慎重和实际的。”

他说，“自2023年以来，我们已经感受到整个市场情绪明显高于去年。中国的制造业PMI在2月飙升到52.6%，同时今年1月份企(事)业单位中长期贷款增加3.5万亿元，释放出企业端经济活动显著恢复的信号。”

戴璞认为，中国经济仍然面临许多挑战，自2022第四季度以来，全球市场需求放缓，且依然存在不确定性。此外，国内需求端恢复速度相对较慢。因而中国在今年的政府工作报告中，着重强调了“稳定”的重要性。

“对恢复与增强企业信心十分重要”

戴璞认为，中国政府工作报告明确的总体目标、发展方向和优先事项，为市场短期发展起到重要的指向作用。

“特别是今年，由于政策及商业环境发生了重大变化，市场对今年中国的全国两会展现出更高的期待。政府工作报告是在不确定的环境中带来了一定的稳定性，这对恢复与增强企业信心十分重要，当然也包括了外资企业。”

戴璞表示，短期来看，今年对华投资数据将在一定程度上受到2022不确定性的影响，反映出去年投资决策的情况。

“但中长期来看，特别是在全球经济持续放缓的宏观形势下，中国5%左右的GDP增速目标仍高于全球很多市场，中国的经济恢复可为跨国企业平衡全球业务发展提供支撑。同时，2023年3%左右的CPI涨幅预期(2022年中国CPI增长2%)也预示了扩大的内需。”

“随着中国政府出台更多支持性的政策，以及中国经济强韧的基本面，我们相信中国市场将逐渐恢复，并保持对外资较强的吸引力。”

“中国市场正逐渐成为重要创新来源”

中国政府工作报告在今年工作重点中明确，更大力度吸引和利用外资。扩大市场准入，加大现代服务业领域开放力度。落实好外资企业国民待遇。做好外资企业服务工作，推动外资标志性项目落地建设。

对此，戴璞表示，在过去几年中，疫情给许多企业的经济活动带来了一定困难，因此也引发了对中国在全球市场中定位的讨论以及对新增投资决策的影响。

“然而今年1月份，罗兰贝格在与多家欧洲跨国公司管理层进行深入交流时发现，对于许多外资企业来说，中国仍然是非常重要的市场，同时中国市场正逐渐成为一个重要的创新来源，可以为许多企业的全球整体竞争力带来强化与补充。”戴璞强调，为了更好地适应中国市场，许多外资将“本地化”作为企业重要战略之一，这将创造更高的经济活力、更好的创新与增长的投资。

“因此，我们认为中国政府提出的相关实施举措，将为在华外资企业带来更高水平的开放、便捷性和平等，提升企业对中国市场的信心。我们相信外资将仍然是中国经济的重要组成部分，且随着中国未来的持续发展，也会为外资企业带来更多的市场机遇。”