Translation. Region: Russian Federal
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
Peng Zhenke, president of Pfizer China and chairman of the executive committee of the pharmaceutical research and development working committee of the China Association of Foreign-Invested Enterprises, recently announced Pfizer’s plans to invest another US$1 billion in China by 2030. The company has already opened a new research and development center in Beijing and an innovation center in Hangzhou.
Zhang Jianping, deputy director of the academic committee of the Institute of International Trade and Economic Cooperation under the Ministry of Commerce of China, noted that investments by American companies in China can be divided into two main categories:
First, market-oriented: companies that provide goods and services directly to the Chinese market, such as Tesla, Starbucks, and General Motors, which make significant profits in China.
Second, global supply chain oriented: companies that use China as an important base for organizing supply chains and creating added value on a global scale, seeking maximum benefit. A typical example is Apple.
China has enormous growth potential, making it particularly attractive to American companies, especially multinational corporations.
Cui Shoujun, a professor at the School of International Relations at Renmin University of China, identifies three key aspects that determine the irreplaceable strategic value of the Chinese market for many American companies:
First, the advantages of a super-large market: China, with a population of over 1.4 billion and a middle-income group of over 400 million, has huge demand. Growing urbanization in China has driven steady growth in demand for home appliances, automobiles, communications, medical services and other consumer goods.
Secondly, the obvious advantages of the full industrial chain: China has 41 major industrial categories, 207 medium sub-categories and 666 minor sub-categories, being the only country in the world represented in all industrial sectors of the UN classification. China’s supply chain is not only comprehensive and complete, but also extremely flexible and responsive.
Third, continuous expansion of high-level opening-up and optimization of the business environment: China creates favorable conditions for the development of foreign companies, including American ones.
Peng Yu, director of the International Trade Research Department at the Institute of World Economy, Shanghai Academy of Social Sciences, stressed that the Chinese market provides American companies with many business and profit opportunities. China is the largest export market for American soybeans and cotton, the second-largest export market for integrated circuits and coal, and the third-largest export market for medical equipment and automobiles.