Chinese President Xi Jinpingmeets with representatives of theinternational business communityat the Great Hall of the People inBeijing on March 28 (XINHUA)

In the 1990s, Jean-Pascal Tricoire, currently Chairman of French multinational Schneider Electric, arrived in China as part of a 10-member team tasked with initiating the company's operations in the country. At that time, Schneider Electric faced hurdles in establishing factories in Beijing due to an insufficient energy supply.

Fifteen years later, while the energy supply had improved, the emergence of smog had created new difficulties, making life uncomfortable for residents and raising concerns about environmental sustainability.

"However, another 10 years passed, and we can run all of our factories because there's plenty of energy and the sky is blue—a feat achieved through technology and innovation," Tricoire shared during a seminar on new quality productive forces, part of the China Development Forum (CDF) 2025, in Beijing on March 23.

New quality productive forces refer to China's shift toward innovation-driven growth, technological advancement and high-quality development in different sectors of the economy. 

Today, Schneider Electric operates 28 factories and collaborates with over 1,600 suppliers in China. Given the vast scale of the Chinese market, the company has structured its operations to function like a Chinese enterprise, carrying out research and development (R&D), sales and production entirely within the country.

"China is now one of the largest markets in the world," Tricoire added. Along with other business executives from multinational companies, he reiterated the optimism about the Chinese market and the willingness to commit to long-term cooperation with China at the CDF 2025.

The forum, taking place in Beijing on March 23-24, was a prominent international gathering hosted by the Development Research Center of the State Council, China's highest state administrative organ. This year's theme was Unleashing Development Momentum for the Stable Growth of the Global Economy. Approximately 720 participants attended the opening ceremony, including entrepreneurs, government officials, experts, and representatives from international organizations from home and abroad.

At the opening ceremony, Chinese Premier Li Qiang expressed that China will continue to welcome businesses from around the world, expand market access, actively address the concerns of enterprises and promote the deeper integration of foreign-funded companies into the Chinese market.

Increasing global economic fragmentation, coupled with rising instability and uncertainty in today's world, underscores the growing need for countries to open up their markets and for enterprises to share resources in order to address challenges and pursue common prosperity, Li said.

BMW Group Chairman Oliver Zipse is interviewed at the signing ceremony of an agreement forthe deepening of strategic cooperation between the German automaker and Shenyang, where itsChina production base is located, in the northeastern city in Liaoning Province on April 26, 2024 (XINHUA)

CEO commitment 

"There seem to be many people here, and they appear to be learning a lot. Foreign companies coming here are interested in doing business with China, so they are also sharing their opinions," Kurt Tong, Managing Partner of the Washington-based consulting firm Asia Group and former U.S. Consul General in Hong Kong, told Beijing Review.

"BMW Group has been deeply rooted in China for over 30 years. Since 2010, we have invested approximately 116 billion yuan ($15.9 billion) in our production base in Shenyang, Liaoning Province, driving industrial upgrading and improving local employment. The Shenyang production base has grown into a world-class manufacturing and innovation hub," the group's Chairman Oliver Zipse said at the forum.

"China is a pillar for the future development of BMW Group. In 2024, we delivered over 100,000 fully electric vehicles (EVs) in the Chinese market, making China our largest single market for EVs worldwide. Strong policy support in China has been a key driver in fostering the high-quality development of the new-energy vehicle (NEV) industry," he added.

NEVs are vehicles completely or mainly driven by new-energy sources, including battery electric vehicles, plug-in hybrid vehicles and fuel-cell vehicles.

Zipse reaffirmed that the German automaker will continue to invest in China. He also said BMW is fundamentally rooted in the integration of global value chains and firmly opposes the growing trend of protectionism. Regarding the European Commission's decision to impose additional tariffs on Chinese EVs, BMW has officially filed a lawsuit. He emphasized that addressing global challenges requires strengthened international cooperation. 

Ola Kaellenius, CEO of Mercedes-Benz Group, said the company operates several R&D centers in Beijing and Shanghai, employing hundreds of engineers who work on a range of projects.

When Mercedes-Benz initially entered the Chinese market in 1987, it collaborated with local engineers to develop products specifically tailored for Chinese consumers. However, Kaellenius emphasized that these innovations have now become an integral part of the company's global R&D efforts. The advancements created by Mercedes-Benz in China are no longer limited to the Chinese market; they are designed for a global audience.

A European company, Mercedes-Benz is dedicated to long-term investment in China, promoting cooperation between China and Germany, as well as between China and Europe, and even on a global scale. Kaellenius added that the company plans to increase its investment, thereby unleashing new momentum for development. He expressed hope that Mercedes-Benz will take on a major role in this process and make a meaningful impact.

Driving openness 

"Promoting the deep integration of technological and industrial innovation is not a solo performance by China but a global symphony," Li Lecheng, Secretary of the Leading Communist Party of China Members Group of the Ministry of Industry and Information Technology, said at the forum.

China boasts a comprehensive industrial system, diverse application scenarios, a massive market and a vast talent pool, offering broad opportunities for international industrial and technological cooperation, according to Li. He added that foreign investors have established over 1.2 million enterprises in China. Among the 31 major categories and 548 subcategories of China's manufacturing sector, all have foreign investment. Additionally, more than 2,400 foreign enterprises have been approved to operate telecommunications businesses in China.

Kaellenius emphasized a fundamental message he heard at the forum: An open market, rather than a closed one, is the true formula for success.

Tong highlighted the need for China to take more proactive measures to stimulate investment demand and better utilize its existing productive capacity. Regarding technological cooperation between China and the United States, he underscored that both sides should genuinely benefit from this exchange.

"If China further opens up its market and creates more opportunities for U.S. technology companies to sell directly into China, including in the digital space, this will help build deeper trust," he said. "Currently, digital companies have limited operations in China, and most discussions focus on manufactured goods. Moving forward, I believe placing greater emphasis on services will be crucial."

China will continue to open up at a higher level, and welcomes multinational companies to expand their investment in China to extend mutual benefit and win-win results, Chinese Vice Premier He Lifeng said on March 23 during a meeting with business executives of leading global multinational companies. Attendees exchanged views on the global and Chinese economic situations, China-U.S. economic and trade cooperation, and expanding investment in China.

He said China is committed to promoting high-quality development, expanding high-standard opening up and continuously improving the business environment while welcoming increased investment by multinational companies in China to share in the country's development opportunities.

The China Development Forum 2025, hosted by the Development Research Center of the StateCouncil, China’s highest state administrative organ, opens in Beijing on March 23 (XINHUA)

China's resilience 

"We have to recognize that the world's economy is in the midst of a massive transformation, driven by many aspects. One of the most important aspects might be technology, and AI in particular," Roland Busch, Co-Chair of the CDF 2025 and President and CEO of German tech giant Siemens AG, said at the forum. He added that this transformation is equally applicable to China, which has already identified its sources of growth: hi-tech, higher efficiency and high-quality growth.

"The government of China is taking action. China is even going one step further, changing the operating system of its economy to unleash new quality productive forces," he said.

He cited examples of China's efforts to continue opening up its markets and to create a level playing field and a fairer business environment. Furthermore, the country is actively boosting domestic demand and upgrading its industries, surprising the world with innovations such as the cost-effective and highly efficient DeepSeek AI models.

In 2024, despite mounting external pressures and growing domestic difficulties, China successfully met its annual economic growth target of 5 percent as planned. Moving into 2025, the Chinese economy has experienced the sudden emergence of several remarkable highlights. For instance, DeepSeek AI models made a stunning debut in late January, transforming global perceptions of China's technological innovation capabilities and prompting a reevaluation of the value of Chinese assets. Additionally, the animated film Ne Zha 2 has taken the global box office by storm, rising to fifth place in all-time global box office rankings.

China's transformation from a low-cost manufacturing base into a global leader in science, technology and innovation is remarkable and certainly not accidental, Dilma Rousseff, President of the BRICS New Development Bank and former President of Brazil, said at the forum. She emphasized that China's economic transformation has been driven by strategic planning, forward-looking policies, sustained public investment and capable, proactive leadership.

Rousseff added that China's R&D spending exceeded 3.6 trillion yuan ($500 billion) last year, with national planning consistently focusing on enhancing industrial capacity, promoting innovation and strengthening global competitiveness. According to her, innovations such as DeepSeek AI not only have the potential to revolutionize hi-tech industries but also reshape traditional sectors.

"China does well in manufacturing production, organizing capital, getting it and injecting it into growth enterprises. It continues to perform well in emerging technology and new energy sectors," Tong said. 

This year, China has once again set an economic growth target of around 5 percent. Han Wenxiu, Executive Deputy Director of the Office of the Central Commission for Financial and Economic Affairs, said at the forum that China's key economic and social development goals for this year are both pragmatic and attainable. The targets take into account employment stability, people's livelihoods and risk prevention, as well as the country's economic growth potential, the momentum from deepening reforms and opening up, and the effectiveness of both new and existing policies.

"In the face of increasing external uncertainties and instability, we will remain unwavering in managing our own affairs well, using the certainty of high-quality development to counteract external uncertainties, and striving to provide a stabilizing anchor for global economic growth," Han added. BR

Copyedited by Elsbeth van Paridon 

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