CIIE Final Sprint: "Regulars" and Newcomers Eye China's Opportunities

With the 7th China International Import Expo (CIIE) just 10 days away, on October 22nd, five trucks loaded with exhibition items for the CIIE passed through a "water gate" and slowly drove into the National Exhibition and Convention Center in Shanghai. This marks the first batch of exhibition items entering the venue, signifying that the preparatory work has entered its final sprint phase.

At a press conference held by the State Council Information Office on the 23rd, Tang Wenhong, Assistant Minister of Commerce, stated that the preparations for the CIIE are now essentially complete. The total exhibition area will exceed 420,000 square meters, with 152 countries, regions, and international organizations participating in the national and corporate exhibitions. The Hongqiao Forum will host a main forum and 19 sub-forums.

Focusing on the development of new quality productive forces, this year's CIIE will for the first time establish a special zone for new materials and upgrade the innovation incubation zone. It will continue to be a global launch site for new products, a preferred site for cutting-edge technologies, and a premier site for innovative services. The event will showcase over 400 representative new products, technologies, and services, and organize 39 government procurement delegations and 4 industry procurement delegations, totaling 780 sub-delegations to purchase at the meeting, setting a record for the most in past editions.

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"Full-time attendees" and new faces of the seventh session

According to Tang Wenhong, this year's corporate exhibition continues to maintain a super large scale of over 360,000 square meters, with 3,496 exhibitors from 129 countries and regions participating. The number of countries (regions) and enterprises has exceeded the previous session, with 297 Fortune Global 500 and industry-leading enterprises participating, setting a historical high. 186 enterprises and institutions have become "full-time attendees" for seven sessions.

Medtronic, an American medical device company that has never missed a session, will continue to bring 7 "first-time exhibitions" and nearly 20 star products to represent on-site this year. Gu Yu Shao, Senior Vice President of Medtronic Global and President of Greater China, said on the 23rd that Medtronic is a long-term participant, witness, and beneficiary of the CIIE. Thanks to the CIIE platform, they have accelerated the introduction and implementation of many world-leading innovative medical technologies and solutions, and they also look forward to further expanding the "circle of friends" in China's medical ecosystem through this year's CIIE.

As a practitioner of digitalization and green and low-carbon "dual transformation," Schneider Electric is also a "full-time attendee" who has attended seven times. Yin Zheng, Executive Vice President of Schneider Electric and President of China and East Asia, proposed that this year's CIIE will once again demonstrate China's confidence in high-level opening up to the outside world, as well as its determination to create new quality productive forces and promote high-quality development. It also creates opportunities for global enterprises to delve into the Chinese market and achieve win-win cooperation, making it an indispensable "Chinese appointment." They continue to be optimistic about the development prospects of the Chinese market, especially believing that China's continuous increase in innovation investment and acceleration of the overall transformation and upgrading of the industrial chain will create a broader development space for various industries.

Honeywell, a global high-tech enterprise that has participated in the exhibition every year, will focus on automation, future aviation, and energy transformation during this CIIE. It will comprehensively display the company's scientific and technological achievements and application practices in related fields, including several products that will make their debut in China. Takeda Pharmaceuticals, a "returning visitor" to the CIIE, will also attend the CIIE with a 600-square-meter booth and showcase the world premiere of a first-in-class rare disease gene therapy.

In addition to the "full-time attendees" and old faces of the seventh session, the CIIE continues to attract new friends who are participating for the first time, and its circle of friends continues to expand."We are well aware of the importance of the CIIE and have been closely monitoring its development," said Zhong Zhonglin, CEO of Nippon Paint China, to Yicai Global. In the past few editions, they attended the CIIE as corporate visitors and also signed agreements with partners on-site. Witnessing the strong spillover effect of the CIIE, they are making their debut this year as exhibitors, bringing two world premieres and one China debut product, focusing on key areas such as smart road construction, urban air purification, and carbon reduction in the automotive industry to share innovative scientific and technological achievements, and fulfilling Nippon's long-term commitment of "in China, for China."

Synopsys, a leader in the global EDA industrial software industry and known as the "pearl on the crown of chips," is also a new face at this year's exhibition. This technology company, which provides chip-to-system design solutions, will showcase the world's first AI-driven chip comprehensive solution, as well as electronic digital twin technology and the industry's first chip education system for young people at this year's CIIE, thereby cultivating talent for the future AI industry.

In addition, Canadian sports lifestyle brand Lululemon and Japan's NTT Sonority are also making their debut as exhibitors, showcasing their latest products.

Apart from large multinational corporations and industry giants, official data shows that nearly 70 overseas organizing institutions will organize nearly 1,500 small and medium-sized enterprises (SMEs) to participate in this year's CIIE, with an exhibition area of over 470,000 square meters. The exhibition area for SMEs has increased compared to the previous edition, with about 100 exhibitors from 30 least developed countries continuing to enjoy the free booth policy. The first-ever important buyer's product selection meeting will help SME exhibitors find partners and buyers more quickly and enter the Chinese market.

Spillover Effects and Chinese Opportunities

The continuous release and expansion of spillover effects are the driving force behind these multinational companies that have been rooted in China for decades or plan to increase their investments in China to flock to the CIIE.

"The strong spillover effect of the CIIE has strengthened our confidence and determination to participate," said Zhong Zhonglin. As the world's first national-level expo themed on imports, the CIIE has become an important bridge for promoting global trade cooperation. The CIIE has been successfully held for six years, providing a platform for foreign-funded enterprises to showcase and communicate, and more importantly, demonstrating China's determination to promote high-level opening up.

Currently, Medtronic has nearly 20 CIIE star products that have transformed from exhibits to goods, and it is also continuously upgrading its local value chain. Ji Ling, head of Medtronic China R&D Center, said that the Medtronic China R&D Center was established in 2012 and has developed a total of 65 products, with more than 50 successfully launched and 23 achieving global sales. Among them, a localized product launched in 2022 completed product development, testing, and submitted to the National Medical Products Administration for approval in just one year, and is expected to be launched by the end of this year.

On October 18, Medtronic Kangdi signed an investment cooperation agreement with Changzhou National High-tech Industrial Development Zone to jointly build an intelligent manufacturing base and innovation center integrating high-end surgical products and equipment production and innovative R&D incubation. Kangdi will introduce advanced products and new technologies from Medtronic's surgical business division, strengthen the localization strategy of integrated solutions for major surgical operations, and create a highland of medical technology innovation in the Yangtze River Delta.

Faced with the challenge of reshaping the global value chain, Takeda Pharmaceuticals has also accelerated its mode in China with the "east wind" of the CIIE. At the 2020 and 2022 CIIEs, this global biopharmaceutical company announced a five-year development plan and an upgraded ten-year development plan. It was also during this period that Takeda successfully approved and launched more than 15 innovative products in China, becoming one of the multinational pharmaceutical companies with the most newly approved and launched products in recent years. Less than a year after the last CIIE, Takeda has successively approved 6 innovative products/indications in China, becoming a vivid example of "exhibits turning into goods."The China International Import Expo (CIIE) serves as a window for the world to observe China's economy and is a microcosm of the global transformation of China's value chain. For multinational corporations, against the backdrop of economic downturn challenges, China's vast market size, rich application scenarios, and mature, innovative supply chain still hold strong appeal.

At the third Honeywell Green Development Summit held on October 22, Xie Weisi, the Shanghai Director of the Economist Intelligence Unit's corporate organization, proposed that China's position in the global supply chain is irreplaceable. According to data provided by the World Bank and others, although there have been adjustments in recent years, China's manufacturing value-added still accounts for about 30% of the global total, significantly leading the United States, Europe, ASEAN, and India, among other countries and regions. Additionally, data from the World Intellectual Property Organization and others show that Chinese companies' R&D investment has continued to rise over the past nearly 20 years, now on par with the European Union and second only to the United States.

Sun Jian, Vice President and General Manager of Honeywell's Energy and Sustainable Technology Group in China, told Yicai at the aforementioned summit that despite the uncertain economic environment, the demand for enterprises to reduce costs and increase efficiency through sustainable technologies, enhance competitiveness, and meet consumers' high demands for environmental performance is growing stronger. The government's continued support for clean energy and environmental protection technologies, especially the proposal of the "dual carbon" goals, has provided a broad space for the development of sustainable technologies. Over the past year, Honeywell has steadily advanced amidst challenges such as global economic stagnation and rising raw material costs, which has been partly得益于 the solid support provided by the scale, resilience, and innovative vitality of the Chinese market. Next, Honeywell will further deepen its layout in the Chinese market, especially in the fields of innovative technologies such as sustainable aviation fuel, hydrogen energy technology, and carbon capture and storage, committed to promoting the development of these cutting-edge technologies and working closely with local partners to jointly create a more sustainable future.

Currently, Schneider Electric has established five major R&D centers in China, with R&D investment growing by more than 15% annually, and has 30 factories and logistics centers, including 19 world-class "zero-carbon factories," 15 national-level "green factories," and 2 "end-to-end Lighthouse Factories." Among them, the Schneider Electric Shanghai Putuo Factory (Shanghai Schneider Industrial Control Co., Ltd.) is one of the recently selected "Lighthouse Factories." Zhang Kaipeng, Senior Vice President of Schneider Electric and Head of Global Supply Chain in China, said he hopes that through the demonstration and driving effect of the "Lighthouse Factory," the overall level of China's supply chain will be improved, and the upstream and downstream, especially more than 1,600 suppliers in China, will achieve dual transformation of digitalization and low-carbonization. From this year for the next three years, Schneider Electric will launch a global supply chain influence plan, continuously investing from multiple dimensions, thereby providing support for the transformation and upgrading of China's supply chain.

From "in China, for China" to "in China, for the world," for multinational corporations, as China's door to openness becomes increasingly larger, China's opportunities are accelerating the global radiation.

Zhong Zhonglin said that Nippon Paint will continue to increase investment in China, "firmly believing that investing in China is investing in the future." This year, Nippon Paint launched the construction of the Asia-Pacific R&D Innovation Center in Pudong, Shanghai, which is an important support for Nippon Paint's innovation capabilities in China and the Asia-Pacific region. The automotive paint industry park in Tianjin will also start production next year. At the same time, they will continue to empower Chinese companies to "go out" with high quality, share global opportunities, "only in 2024, we have helped CITIC Dicastal to deeply layout in Mexico, Changan Automobile to layout the Thai market, Geely Automobile to supply the Malaysian market."