Openness, predictability key to investments
Q4 Driving domestic consumption is one of the top priorities for China to spur economic growth this year. How do you see China's potential to drive a consumption-led impetus for the economy? How will that affect your company's profitability this year?
DEPOUX: There is still large, untapped potential in consumption. Despite China's rapid initial recovery from the COVID-19 pandemic, consumption and consumer confidence have remained fragile. Boosting consumption and making it a stable and sustainable contributor to China's economy are a long-term endeavor. It relies on the ongoing transformation of the economy.
The focus has to be shifted from volume to value by higher productivity to generate more disposable income, in turn, driving up confidence and mass market spending. Profitability is crucial for business and companies. There is no quick fix; policymakers and market participants must move past the old China narrative and embrace a new growth model. Restoring confidence and ensuring a social safety net are crucial to addressing long-term challenges. The government should focus on strengthening the social safety net by enhancing existing measures, such as promoting and regulating long-term savings through financial services, accelerating the development of public and private pension programs, and improving the density and quality of the healthcare system.
WANG: China's vast consumption potential offers robust momentum for economic growth. As consumption upgrades and digital transformation accelerate, Chinese enterprises are expanding globally through innovative products and localized strategies. At LinkedIn China, we've observed remarkable achievements from Chinese manufacturing, photovoltaics, and new energy enterprises in international markets. As Chinese enterprises expand internationally, LinkedIn is uniquely positioned to support their talent acquisition and brand-building efforts in overseas markets. By leveraging our global network of over 1.1 billion professionals and AI-powered solutions, we help Chinese companies cultivate culturally attuned local teams — a critical factor in winning consumer trust abroad.
SIM: Despite a challenging global economic landscape, the Chinese government's determination to boost domestic consumption is encouraging and instills confidence in foreign enterprises like Scoot that have been deeply rooted in the Chinese market for many years.
Since the introduction of visa-free travel for Chinese travelers to several Southeast Asian nations, we have observed a sizable increase in demand from Chinese travelers for more spontaneous, short-haul trips to the region. Meanwhile, China's visa facilitation policies for foreign visitors have attracted a growing number of international inbound travelers to explore the country's breathtaking natural landscapes.
XU: China's potential for consumption-led growth is immense, driven by the rapid expansion of its e-commerce sector and rising demand for travel. With the surge in both inbound and outbound travel, Cathay Pacific is well-positioned to meet the growing demand for passenger travel by offering premium experiences and a variety of options to meet the demand. Simultaneously, the growing demand and the changing market situation for cross-border e-commerce present significant opportunities for our logistics services. By offering efficient and professional solutions, Cathay is contributing to the development of China's digital economy. This evolving consumption pattern creates positive momentum, driving growth in both passenger travel and air cargo sectors for our business.
