Innovation drives MNCs in nation

Tesla Inc loads electric cars for shipment from Shanghai on May 11. Foreign firms swear by local market on reforms, opening-up, nimble COVID measures There was a time, not too long ago, when all that multinational corporations had to do to succeed in China was employ a simple, time-tested formula: Bring in bestselling products, popularize them, make profits, build local factories, expand or enhance the product portfolio, throw in some value-added services, and, maybe, even hire local CEOs, in order to reach more consumers in lower-tier cities. Add to that factors like rising disposable incomes that stoke consumption upgrade, huge demographic segments of consumers, future growth prospects, economic resilience amid the COVID-19 pandemic and game-changing multilateral, regional and bilateral trade agreements, and it becomes easy to understand why MNCs are furiously developing China-specific strategies, experts said. For instance, over and above reforms and higher-level opening-up, there are proactive consultations with business leaders; thrust on high-tech, innovation and digitalization; efforts to reform the World Trade Organization for a just and fair multilateral trading system; and a host of other fiscal and monetary tweaks from time to time－all to ensure MNCs receive a level playing field in China. Denis Depoux, managing director of Roland Berger, a global consultancy, said China will remain an attractive market, a superior industrial cluster and an increasingly efficient innovation hub for most MNCs.