Vast market with unique features, bright prospects

As an exhibitor at the CIIE for five consecutive years, Kao's scale, level and influence have demonstrated closer connection between China and the rest of the world, said Oka Shintaro, general manager of Kao Commercial Shanghai.

These moves reflect the Chinese market's growing significance to the global economy as the country's dual circulation growth paradigm — in it, the domestic and international markets complement each other, with the domestic market as the mainstay — has already taken shape, said Zhang Yuyan, director of the Institute of World Economics and Politics at the Beijing-based Chinese Academy of Social Sciences.

The new development pattern will continue to create more space for the growth of multinational corporations in services, innovation-driven areas and businesses related to digital empowerment, he said.

Seeking big opportunities in areas such as carbon neutrality, retail, high-end manufacturing and innovation-driven development, the actual use of foreign direct investment into the Chinese mainland expanded 14.4 percent on a yearly basis to 1.09 trillion yuan ($152.93 billion) between January and October of this year, data from China's Ministry of Commerce showed.

To reinforce its position in global industrial and supply chains and to inject more stability into the global economy, China released in late October the 2022 catalogue of industries to encourage foreign investment. The move is widely seen as part of intensified efforts to attract more foreign investment and expand higher-level opening-up.

For instance, new or revised items in the catalogue cover sectors including aviation equipment manufacturing, key industrial components used in autonomous driving, and high-performance raw materials, according to a statement by the National Development and Reform Commission.

Despite challenges caused by the COVID-19 pandemic, China remains an attractive market, a superior industrial cluster, and an increasingly efficient innovation hub for most multinational companies, said Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation in Beijing.

The country's market has unique features in consumption patterns and domestic technology and business model evolution. This has become more different from other markets and calls for business model localization. Engagement and business models of multinational companies should evolve accordingly so as to better participate in China's future growth, he said.

The fifth CIIE attracted 145 countries, regions and international organizations, as well as more than 2,800 enterprises in the commercial exhibition area. Up to 438 new products, technologies and service items made their debut at this year's CIIE, up from 422 last year, according to the CIIE Bureau.

Among exhibitors from around the world, US companies continue to have a large presence, seeking further investment and cooperation in the Chinese market.

Yann Bozec, president for Asia-Pacific of US luxury company Tapestry Group, said the Chinese market is not only the source of inspiration for breakthroughs and innovation, but also an advanced platform for forging partnerships.

In addition to running 360 stores across China, the group plans to open 100 stores for its three brands in the country over the next three years, Bozec said.

After participating in the CIIE for the first time in 2019, Boston Scientific Corp, a US medical product provider, has established a new branch in Shanghai and produced one of its pillar devices domestically, which was presented at the expo this year.

"We can now localize the manufacture of medical systems in China that were previously imported. This will help adapt the market environment a lot faster and tailor it to the needs of Chinese customers," said June Chang, president of the company's China unit.