Opening-up key to China's prosperity

Editor's Note: Despite global uncertainties and the economic downturn caused by the COVID-19 outbreak, China is on track to embrace the dualcirculation development pattern as it enters the 14th Five-Year Plan period (2021-25) in 2021, which also marks the 100th anniversary of the founding of the Communist Party of China. China Daily spoke to senior executives from multinational corporations to get their views on the overall macroeconomic environment, potential business opportunities, and how China can play a key role in shaping the trajectory of global growth.

Q1: How important have your China operations been in your overall performance in 2020?

Q2: China's new dual-circulation development pattern emphasizes on boosting domestic demand and further opening up the domestic market. How will your company utilize this policy to expand your presence and investment in China?

Q3: Which policy aspect in the government's "Six Safeguards and Six Priorities" directive has emerged as most conducive to your development in China amid the global economic uncertainties?

Q4: What's your take on Beijing's stance that China has entered a "new development stage"? How would such a proposition bring changes to your China strategy?

Q5: How does China fit into your overall business strategy in the coming years? What role do you expect China to play in driving the world economy?

Q6: What aspects of China's 14th Five-Year Plan and the country's 2035 long-term development goal are you most looking forward to?

A1 China is a strategically important market for Credit Suisse and is a key contributor to the bank's strong underlying business growth in the Asia-Pacific. We are fully committed to this market for the long term and continue to actively invest in growing our onshore operations. A notable highlight in 2020 was Credit Suisse becoming a majority shareholder in our China securities joint venture-Credit Suisse Founder Securities. This marks a significant milestone for our China franchise as it enables us to accelerate our plans to strengthen our onshore presence and capabilities, and better capture the compelling opportunities presented by China's dynamic and increasingly liberalized financial markets.

A2 We have a consistent and clear strategy in China, and that is to be the bank for entrepreneurs. Our long-term goal is to make a meaningful contribution to the development of the country's financial markets with a focus on entrepreneurial, corporate and institutional clients. We have full confidence in the resilience of China's entrepreneurs and their ability to weather the challenges ahead. Further opening up of the domestic market should enhance the productivity of China's labor force, facilitate wage growth and improve overall credit allocation efficiency. These trends would benefit both entrepreneurs and corporates, as well as households.

A3 The "Six Safeguards and Six Priorities" directive has supported the Chinese economy through most of the past year to mitigate the impact of the COVID-19 pandemic, which is still affecting many other countries at present. As part of the directive, the policy aimed at stabilizing foreign trade and investment is particularly important for those foreign firms where China represents an increasingly important part of their global businesses. For financial companies, the outperformance of the Chinese economy throughout the pandemic as well as the further opening up of the domestic financial services industry to foreign investment have boosted their confidence to more quickly and decisively expand their footprint in the China market.

A4 China is projected to soon become the largest consumption market in the world. The economy has become largely consumption-driven rather than investment-driven, which in our view is the most prominent indication of a "new development stage".This stage will be particularly marked by increased household consumption and upgrades to the manufacturing supply chain. It will be crucial for any foreign company that hopes to strengthen its China business to actively tap into this new development stage in order to benefit from the consumption-driven economy. Looking ahead, Credit Suisse's plan is to bring the full capabilities of our global platform to clients in China.

A5 China is an important pillar of Credit Suisse's global strategy. Our aim is to bring the best of Credit Suisse's integrated advisory services and solutions to clients in China, while leveraging our global platform and our position as a leading wealth manager with strong investment banking capabilities. China's domestic financial market is becoming increasingly relevant to global investors. We are encouraged by the government's efforts to ramp up liberalization by allowing foreign capital access to more financial services sectors like insurance, asset management and pension funds. By opening the market to foreign players, China is already making strides in closing the gap with the United States and European financial markets. The nation will play an increasingly important role in the world economy in the next 10-15 years.

A6 We anticipate an emphasis on three key policy categories in the next five-year plan: technology advancement, labor productivity and land reform. The technology category encompasses the government's ongoing efforts to establish "new infrastructure," innovate and enhance capabilities in key strategic sectors and secure essential chips. Credit Suisse has a strong track record in carrying out Chinese capital-raising activities in the international IPO market, particularly for Chinese tech companies, and we look forward to continuing to play a leading role in such transactions.