Plenum reinforces MNCs' optimism on China

Q3 How do you view China's new reform initiatives aimed at fostering new quality productive forces, such as those to encourage industrial upgrade and technological innovation? Do you see these as opportunities or challenges for foreign enterprises, and why?

LUSKIN: Mobileye's commitment to increasing safety and advancing autonomous driving technology aligns seamlessly with the emphasis on high-quality development. We view these initiatives as opportunities to leverage our expertise and collaborate with local Chinese partners. Through these efforts, Mobileye aims to enhance our footprint in China and capitalize on long-term growth prospects, while contributing to the broader goals of industrial upgrade and technological innovation in the country. Our proven track record globally and enduring success uniquely position us to support Chinese automakers as they embrace technological advancements and seek to expand their international presence.

CHEN: These initiatives are of great significance to the sustainable development of foreign enterprises, especially in the manufacturing sector. I personally believe that there are more opportunities than challenges. Technological innovation and industrial upgrading are crucial for supply chains to achieve optimization and sustainable development. These initiatives will likely bring new business needs and opportunities to the Chinese market, aiding foreign companies in expanding their business in China.

Additionally, technological and industrial advancements will create demand for talent and promote international and interindustry talent exchanges. This will stimulate new inspirations and creativity, helping China to foster new quality productive forces and strengthen its talent pool.

XIE: We see great opportunities in China's new reform initiatives aimed at fostering new quality productive forces. On the one hand, enterprises in traditional industries will be encouraged to apply digital, intelligent and green technologies to transform and upgrade these sectors.

On the other, we are excited to see that the plenum requests facilitating revolutionary breakthroughs in technology and pursuing innovation in key generic technologies, cutting-edge technologies, modern engineering technologies and disruptive technologies. China is already the world's second-largest spender on research and development and has around 400,000 high-tech enterprises. We believe the reform measure will make China a global leader in new technology innovation. To leverage China's innovation strength, we have been promoting our corporate venture capital initiative Vale Ventures in China. We are looking forward to meeting innovative startups with disruptive technologies in China and establishing partnerships with them.

CHENG: Over the years, China's economic model has been shifting from one that is planned to one that is market-driven. Looking ahead, it is now transitioning from a model that was dependent on export-oriented, investment-driven growth to one that is powered by domestic consumption and innovation.

State-led investment is playing a vital role in supporting the economy. Investment into strategic sectors such as EVs, advanced manufacturing, tech hardware and AI will help offset the shortfall in property investment.

Fiscal stimulus through infrastructure investment will offset the shortfall of property investment. With the stable and improving performance of the Chinese economy, demand for using renminbi as a currency for international trade settlement and financing is expected to gradually increase.