Global companies bullish on Chinese market's prospects

Foreign companies, especially those in Europe, are showing growing confidence in China's market potential, as the country's latest economic data underscores a steady recovery in consumption and industrial activity, reaffirming China's appeal as an engine of global growth.

World business leaders expressed strong optimism about growth prospects in China, pointing to its vast consumer market, robust investment options in manufacturing and rising innovation capacity as key drivers of new development opportunities for multinational corporations based in Europe and beyond.

They reaffirmed their long-term commitment to the Chinese market with plans to further expand investment in the world's second-largest economy, saying that China's steady economic momentum signals long-term potential and broader space for future growth.

"China's vast and robust consumer market offers multinational corporations many opportunities, fueled by diversified demand drivers and significant growth potential," said James Zhou, chief commercial officer of Louis Dreyfus Co, a global agribusiness group based in the Netherlands.

Roy Jakobs, CEO of Dutch multinational health technology company Royal Philips, also noted signs of stabilization in the Chinese economy, supported by the recovery in consumer activity. "We see consumer confidence and consumer spending rising, which is really encouraging," he said.

According to data from the National Bureau of Statistics, China's retail sales grew 6.4 percent year-on-year in May, compared with a 5.1 percent rise in April, making it the fastest pace of growth since late 2023.

Despite global uncertainties and rising geopolitical tensions, Jakobs said that Philips remains optimistic about China's prospects, betting on opportunities arising from the country's aging population, continued healthcare reform and rapidly advancing digital ecosystem to drive sustainable business growth.

"In the mid- to long-term, we have a very strong outlook on China. We believe China will still be an important driver of global GDP," he said, adding that his company will strengthen its innovation hubs and establish a new one in Beijing.

Malu Nachreiner, head of the Region Asia for the Crop Science Division of Bayer, said the Germany-based life sciences enterprise sees promising long-term growth prospects in the Chinese economy.

China's steady economic growth indicates great potential for development, thereby providing foreign companies such as Bayer a broader scope for growth in the Chinese market, she said.

In early 2025, Bayer launched a new supply center in Hangzhou, Zhejiang province, with an investment of 40 million euros ($46 million). "We are committed to continuing our investments, as we look forward to the opportunities that will arise as the market further opens up," Nachreiner added.

French industrial software company Dassault Systemes also reaffirmed its strong commitment to the Chinese market.

The company "benefits from China's high-quality development, with the demand driven by digital transformation presenting new opportunities for future business growth", said Zhang Ying, managing director of Dassault Systemes Greater China.

Dassault Systemes has established innovation centers in seven cities, including Chongqing, Changchun in Jilin province, and Qingdao in Shandong province, while three more centers are currently under construction. As 2025 marks the company's 20th anniversary in China, "we will further expand our investment", Zhang said.

Francisco Veloso, dean of INSEAD business school, said he believes China is poised for long-term growth, led by innovation and entrepreneurship, despite macroeconomic headwinds and rising global uncertainties.

Contact the writers at?ouyangshijia@chinadaily.com.cn