Summary of Key Points
The 9th China International Import Expo (CIIE) welcomed a number of multinational giants making their debut, including AkzoNobel and Janssen Biologics, as well as local companies like Emboloo seeking international opportunities through this platform. Behind these developments is a shift in how multinational corporations view the Chinese market—no longer merely as a large-scale market for profit, but as a hub for innovation and value creation. The CIIE has evolved from a one-way channel for introducing foreign investment to a two-way platform that facilitates both inward investment and outward expansion. Foreign capital continues to flow into China (as evidenced by data from Shanghai), with companies adapting to the new dynamics of the market and addressing challenges related to increased competition and consumer demands.
Detailed Analysis
1. The Surge of Debutants: Why Are Multinational Giants Participating in the CIIE Now?
Many of these debutant companies have been present in China for some time (for example, Janssen Biologics has been operating there for 40 years), but they chose to participate in the CIIE only recently due to several compelling reasons:
- Positive Perception of the Chinese Market: AkzoNobel highlights China’s large market size, well-developed industrial chain, and vibrant innovation ecosystem. It is confident that its business in China will contribute 13% of its global sales by 2025.
- Business Transformation: Janssen Biologics previously focused on one product (human albumin) but now aims to introduce more innovative therapies to the Chinese market. The CIIE provides an opportunity to connect with government, industry, and academic resources, even securing a booth for the 10th edition of the exhibition.
- Desire for Deep Integration: Berend Health is using the CIIE’s associated platform, Lu-Link, as a stepping stone to enter the Chinese market officially next year. The company values brand awareness and market connectivity; after all, China is not just a sales destination but also a source of innovative ideas.
In short, what was once seen as unnecessary has now become an essential opportunity.
2. The Changing Chinese Market: From a Sales Destination to a Source of Innovation
Multinational companies are repositioning their presence in China from a focus on selling products to one that emphasizes innovation:
- Increasing Role in Innovation: Janssen Biologics notes that China accounts for 30% of the global pipeline for new drug development, with early-stage research and development contributions exceeding 50% for the next generation of therapies.
- Local Demand Driving Global Trends: Berend Health incorporates consumer feedback (e.g., preferences for smart and personalized products) into its global product development. AkzoNobel is also leveraging insights from the Chinese market to develop locally tailored innovations.
- A Critical Link in Global Competitiveness: AkzoNobel considers China its largest single market and a strategic hub for innovation, as the competitive landscape and consumer demands drive technological advancement.
In layman’s terms, companies are no longer just bringing foreign products to China; they are creating ideas that can be applied globally.
3. The Dual Value of the CIIE: Local Companies Use It to Expand Internationally and Upgrade Their Business
The CIIE is not only a platform for foreign investment but also offers opportunities for local enterprises:
- International Expansion: Emboloo, a local cheese brand from Shanghai, aims to prove that high-quality dairy products can be produced in China, breaking stereotypes about imported goods.
- Business Upgrading: Emboloo seeks access to global quality ingredients and technical exchanges to improve the taste and quality of its cheeses, aligning them with European standards.
- Two-Way Interaction: The CIIE facilitates both inward investment (foreign companies entering China) and outward expansion (local brands going global), enabling local enterprises to gain international exposure and enhance their competitiveness.
4. Navigating New Challenges: How Can Companies Survive and Thrive?
The changing Chinese market presents new challenges, which companies are addressing in various ways:
- Competing with Local Players: Berend Health acknowledges the rapid innovation and lower costs of local brands and is working to maintain German quality while accelerating product development and expanding into B2B services (such as providing water purification equipment).
- Addressing Consumer Needs: Emboloo focuses on niche markets for high-quality, natural cheeses, leveraging domestic alternatives and consumer trends.
- Seizing New Opportunities: Janssen Biologics sees potential in emerging technologies like AI and biopharmaceuticals to meet unmet medical needs and drive industry growth.
5. Data Supports Foreign Investment Confidence
Statistics from Shanghai confirm the positive sentiment of companies: From January to May 2026, 2,491 new foreign companies were established in the city (a 1% increase), with actual foreign investment reaching $8.143 billion (a 6.9% increase). There are now 1,101 multinational company regional headquarters and 660 R&D centers in Shanghai. These figures indicate that foreign investors are not only staying but also establishing more R&D and management centers in China due to the market’s potential and innovation capabilities.
Conclusion
The Chinese market has evolved from a large consumer base for sales to a place capable of driving innovation and creating value. The CIIE has transformed from a showcase for foreign investment to a platform for global collaboration, providing opportunities for both multinational corporations and local brands to grow and thrive.