Three major roles in the Chinese market
Affected by the COVID-19, global trade and investment suffered heavily in 2020: US stocks suffered circuit breakers for four times, the world economy has fallen into recession, and enterprises faced great challenges.
Despite the increasing instability of the external environment, under Chinese effective epidemic prevention and control and corresponding supporting policies, foreign-funded enterprises were able to quickly resume work and production. Instead of being hindered, their development in China has become a highlight of the world economy this year. This means that the Chinese market plays a more important role in the global business of multinational companies, no matter it is a haven in the storm, a source of innovation in the new era, or the first stage of their talents, the business of multinational companies in China can perfectly adapt and develop in the long run.
Haven: Performance continues to grow strongly despite the epidemic
This year, many multinational companies, including the World’s top 500, have seen their revenues fall off a cliff. But in China, due to taking the lead in effectively controlling the epidemic and quickly resuming work and production, the Chinese market becomes the only profitable market for some multinational companies by 2020. The Wall Street Journal reports that China is a haven for many of the world’s companies.
US jeweler Tiffany & Co. saw revenue fall in the U.S., Japan, and Europe in the third quarter, while the Asia-Pacific region was the only region to grow, with revenue jumping 30% to $382 million. L ‘Oreal’s sales fell 7.4% in the first three quarters of 2020 from a year earlier, but the Chinese market grew strongly. The auto industry was also particularly strong, with a significant rebound in China’s auto market leading to a strong rebound in global auto companies. Tesla CEO Elon Musk called the company’s third-quarter “the best in history” with a net profit of $331 million. Meanwhile, Tesla continues to pin its hopes on the China market.
Innovation: An important opportunity for innovation and development
Chinese open market and good business environment provide fertile soil for the innovation and development of multinational companies: an innovative atmosphere, human resources, and investment environment are all important opportunities for multinational companies.
As Starbucks’ largest productive strategic investment project outside the United States, Starbucks Chinese “Coffee Innovation Industrial Park” started construction on November 16, and will become one of Starbucks’ greenest coffee roasting plants in the world.
First show: New products are launched for the Chinese market
Large companies have chosen China as the first market for their products: ABB’s HoverGuard drone-borne natural gas leak detection solution was selected in China for the first time when it was first public; French Decathlon launched the world’s first inflatable kayak sports product; Panasonic In the post-epidemic era, the electrical company launched the “6 Constant Climate Station” system for the first time in the world; Unilever launched the skin-friendly products for the first time.
Foreign companies have cast a vote of confidence in China with practical actions. The fact that companies around the world continue to be optimistic about the Chinese market shows that China’s commitment to providing opportunities is gaining more and more recognition. Located in the Greater Bay Area of China, HiGlobal creates opportunities and value for you. We help you in product sourcing, price negotiation, factory audit, QC, legal support, and after service. We have successfully helped more than 50 countries import from China. Making you more resilient in the global value chain and protect your business and family from beginning to end is what we are doing. Get in touch with us to start a profitable business NOW!