Import expo reveals 5 aspects of China's 'charm' for foreign firms

In the vast and intricately designed National Exhibition and Convention Center (Shanghai), where the 7th China International Import Expo (CIIE) is being held, people from around the world can be seen exploring the exhibition halls and talking with others, seeking to make best use of the opportunities on offer.

Since its inauguration in 2018 as the world's first national-level import-focused exposition, the CIIE has increasingly gained popularity among attendees. The business exhibition at this year's expo, scheduled from Nov. 5 to 10, maintains its massive scale of over 360,000 square meters. Some 3,500 exhibitors from 129 countries and regions are participating, more than appeared in the previous session. Among them, 297 are Fortune Global 500 companies and industry leaders, marking a record high.

Why are foreign companies so fascinated with the CIIE? A close look at the exhibition halls and in-depth conversations with the exhibitors reveal several sources of the appeal of the Chinese market -- five factors can be neatly summarized in the acronym "CHARM".

This photo shows the National Exhibition and Convention Center (Shanghai), the main venue for the 7th China International Import Expo (CIIE), in east China's Shanghai, Nov. 4, 2024. (Xinhua/Yin Gang)

C FOR "CHANGE"

Since China put forward the concept of "high-quality development" to shift away from the focus on high-speed economic growth, the country has witnessed great changes in many fields -- accelerated industrial transformation, robust innovation, and even shifts in people's lifestyles. Emerging market demand means fresh new business opportunities for all.

At this year's CIIE, the Innovation Incubation Special Section features for the first time exhibitions in four major fields: digital economy, green and low-carbon development, life sciences, and manufacturing technologies. It showcases about 360 innovative projects, the highest number for the section since 2018.

The exhibition hall of Suzano, a giant in commercial pulp production from Brazil, is located in the newly established new materials zone. The company showcases its innovative achievements in bio-based solutions, as well as a low-carbon tissue product jointly developed with its Chinese partner.

"Chinese customers are open to innovation and testing new products, business models and practices," said Pablo Machado, president of business management at Suzano Asia. "The biggest opportunities for companies here will be higher-quality products and services."

Visitors experience the process of radioligand therapy using AR technology at the booth of Novartis during the seventh China International Import Expo (CIIE) in east China's Shanghai, Nov. 5, 2024. (Xinhua/Liu Ying)

H FOR "HUGE"

When asked about the main impression of the Chinese market, Kok Ping Soon, CEO of the Singapore Business Federation, immediately thought of its "huge potential."

The vast scale of the market is a unique advantage for China. With a population of over 1.4 billion, China has a diverse range of consumer groups, each with a massive scale, which translates into enormous demand for products and services, ranging from premium categories to everyday necessities.

"China is home to over 400 million middle-income population. Market growth might not always be in a rocketing state, but the world's second-largest consumer market will still grow," said Kok.

To help exhibitors connect with the vast Chinese market more effectively, local governments and agencies across China have organized 780 delegations for procurement at the CIIE, the highest number in CIIE history.

Visitors line up to taste Spanish ham during the seventh China International Import Expo (CIIE) in east China's Shanghai, Nov. 6, 2024. (Xinhua/Liu Ying)

A FOR "ACCESS"

China has been committed to expanding its opening up and sharing its development opportunities with the world. Constant efforts have been made to facilitate market access for foreign investment and create a favorable business environment.

Just four days before the opening of the CIIE, the latest version of China's negative list for foreign investment took effect, removing the remaining investment restrictions in the manufacturing sector. The country has vowed to continue easing market access with the orderly expansion of opening up in sectors like telecommunications, education, culture and medical care.

At its CIIE booth, French healthcare company Sanofi highlights representative innovative drugs whose entry and use in China have been accelerated through the platform.

In September, the use of a Sanofi immuno-inflammatory product was approved in China as a targeted therapy for chronic obstructive pulmonary disease, with approval granted faster than in the United States and the EU, according to the company.

When meeting with select exhibitors and buyers attending the CIIE, Chinese Premier Li Qiang said that the country will continue improving the business environment and provide equal opportunities in accessing production factors, qualification licensing and participation in government procurement, among other areas.

Star product Dupixent of Sanofi is on display during the seventh China International Import Expo (CIIE) in east China's Shanghai, Nov. 5, 2024. (Xinhua/Liu Ying)

R FOR "REWARD"

The ever-evolving demand, immense potential, and an increasingly open market have brought tangible returns to foreign companies that are expanding their presence in China.

Since 2018, more than 2,400 new products, technologies and services have made their debut at the CIIE, and the cumulative intended transaction value has amounted to approximately 420 billion U.S. dollars.

Success stories abound at the CIIE. From a 9-square-meter stall at the inaugural CIIE, cuddly Peruvian alpaca wool toys have now made it into over 30 shopping malls across China and onto various e-commerce platforms, with annual sales volume surpassing 30,000.

"It has been an incredibly rewarding journey completely exceeding our expectations," said Ysabel Zea, co-founder of Warmpaca.

Visitors look at alpaca toys at the booth of Warmpaca during the seventh China International Import Expo (CIIE) in east China's Shanghai, Nov. 5, 2024. (Xinhua/Jin Mamengni)

M FOR "MEGATREND"

Foreign executives at the CIIE have frequently mentioned "long-term confidence in China," which is largely underpinned by the unchanged sound fundamentals and the overall trend of steady development of the world's second-largest economy.

Despite the high base of the previous year, the Chinese economy achieved a year-on-year growth rate of 4.8 percent in the first three quarters of the year, outperforming many major economies worldwide.

Thanks to the strong demand from the Chinese market, Suzano saw its third-quarter earnings before interest, taxes, depreciation and amortization rise 77 percent year on year.

"We are glad to see that steps have been taken and more will be taken to boost recovery and fully restore confidence," said Machado.

Premier Li said that China is confident in achieving this year's economic and social development goals, as well as the future development of its economy.

"China has the capability to promote sustained economic recovery and facilitate market expansion and improvement, thereby creating broader development space for enterprises from around the world to expand trade, facilitate investment and business, and apply innovative products and services," Li told exhibitors and buyers attending the CIIE.