Biz leaders upbeat on flourishing China market

A1 We have deeply felt the continuous improvement of China's business environment and are very confident in the long-term development prospects of the Chinese market. We will continue to increase investment in product innovation, digital transformation and personalized nutrition to appeal to younger demographics.

In terms of the policies launched in recent years, I think a lot of initiatives such as encouraging innovation and entrepreneurship, stimulating market vitality and simplifying enterprise registration will surely help further expand domestic demand and activate the consumer market. We also expect more policies to be unveiled in the annual two sessions.

A2 We are very impressed by the prospects of China's high-quality development. China is focusing on innovation in all sectors, and innovation is also the driving force for Herbalife Nutrition's long-term development. We began full operations of the China Production Innovation Center (CPIC) in Shanghai last year, with investment of 160 million yuan ($25 million). It is also the company's first product innovation center globally.

A3 The COVID-19 pandemic undoubtedly made consumers reevaluate the importance of health. This has been creating huge opportunities for the health and nutrition industry. Statistics show that China's health product market is expected to reach to 320 billion yuan in 2023. We expect to meet the growing and diversified demand by providing innovative products for younger people.

A4 The year 2022 marks the 50th anniversary of the historic document — the Shanghai Communique. It is an important cornerstone for US-China exchanges and cooperation in wide areas including bilateral trade and economic cooperation. In China, Herbalife Nutrition has also been working very closely with our Chinese partners, such as our supply chain partners. During the outbreak of the COVID-19 pandemic in early 2020, our supply chain faced great challenges, like labor shortages and logistics disruptions. Our supply chain partners gave us very strong support to solve these problems.

A5 Herbalife Nutrition's investment and long-term commitment in China will not be affected by this move. In China, consumption upgrade and domestic demand expansion will help the country to grow its consumer base under the dual-circulation development plan, providing huge growth potential for foreign enterprises including Herbalife Nutrition. We have invested in product innovation to provide more personalized products and services to consumers. We will continue to invest in the Chinese market and focus on our long-term development in the country.