From left to right: Winnie Ma, president for APAC Region at VF Corporation; Willie Tan, CEO of Skechers China, South Korea and Southeast Asia; Grace Dong, president of Avnet China; Benjamin Ling, regional president Asia at Roehm. [Photo provided to chinadaily.com.cn]
Editor's Note: This year marks a critical milestone as China concludes its 14th Five-Year Plan. To help in assessing the success of the process, we have asked multinational executives to share with our readers their insights about their business achievements in the past few years and further expectations in the years to come.
Q1 What's your view on the just-concluded two sessions? Do you expect any specific policy measures for further deepening reforms and expanding high-standard opening-up? What more should China do to create a more enabling business environment for foreign investors?
MA: For over three decades, VF's growth has benefitted from China's economic development, progressive reforms and market expansion. VF's iconic outdoor, active sports and work-wear brands are being offered to an expanding consumer base at over 1,500 mono-brand stores across the Chinese market.
Economic fluctuations are an inescapable part of any economy, yet China's strong economic management bolsters our confidence in the resilience and long-term potential across the Chinese market. We remain optimistic about China's proactive strategies to maintain effective economic momentum.
The government's 2025 Action Plan for Stabilizing Foreign Investment elevates our confidence about China's commitment to maintaining a favorable business environment for global businesses such as VF.
TAN: This year is pivotal, marking the conclusion of China's 14th Five-Year Plan (2021-25) period. I eagerly anticipate the policies supporting foreign enterprises introduced during the two sessions. These policies will further drive economic prosperity, bolster business confidence and reinforce China's role as a stabilizing force amid growing global economic uncertainties.
China's commitment to deepening reforms, expanding openness and optimizing the business environment has significantly benefited brand development, including Skechers. We anticipate additional concrete policy measures, such as streamlining administrative approval processes, lowering tariffs and strengthening intellectual property protections. These measures will improve the convenience and confidence of foreign enterprises operating in China.
The effectiveness of China's recent policies to further optimize the foreign investment environment and intensify efforts to attract global capital are fairly clear.
DONG: As China enters a new phase of economic development, we welcome the policies outlined during the two sessions that further deepen reforms and enhance high-level opening-up. We hope to see continued support for foreign investment in high-tech industries, green energy, advanced manufacturing and artificial intelligence, reinforcing China's position as a global innovation hub. At Avnet, with 30 years in the Chinese mainland and 104 years of global expertise, we believe a more enabling business environment can be achieved through streamlined import regulations, enhanced logistics efficiency and policies that encourage foreign enterprises to establish regional R&D centers. By fostering greater collaboration and ensuring a stable, transparent policy framework, China can further attract long-term investment and drive innovation-led growth.
LING: As a chemical company with methacrylate verbund facilities in China, Roehm's portfolio fits well into China's dynamic market and has long benefited from the country's continuously improving business environment. Amid current economic challenges, we expect China to continue prioritizing economic stability and growth, with a focus on high-quality development and innovation. It is also important for the government to further enhance the effectiveness of its opening-up platforms and improve the policy support system.
Q2 "New quality productive forces "is widely seen as key to helping China achieve industrial upgrade and "high-quality development". How can your company help cultivate such forces in China?
MA: China's pursuit of new quality productive forces has propelled industrial transformation and nurtured a dynamic, innovation-driven economy. VF takes pride in playing a part in this advancement. By drawing on our extensive expertise, we are driving innovation, enriching consumer experiences and spearheading digitalization in this rapidly evolving market landscape.
Aligned with the Healthy China 2030 initiative, VF is committed to promoting active and sustainable ways of life through offering high-quality products and exceptional consumer experiences. For professional adventurers, the Summit Series offers top-tier performance outfits with advanced technology and functionality. For those exploring urban environments, the Urban Exploration line ingeniously combines outdoor functionality with contemporary design aesthetics. It presents a seamless blend of weather-ready protection features and stylish, trend-setting designs.
TAN: Skechers is committed to thorough research and application, constantly enhancing technology and products through innovation. We are dedicated to increasing our investment in research and development, and the Asia-Pacific R&D Center in Dongguan, Guangdong province, offers robust support for innovation and development, propelling the growth of new, high-quality productive forces. Skechers has consistently prioritized talent development and actively collaborates with universities and organizations to strengthen the link between industry and education. This strategy fosters technological innovation and the development of skilled professionals. We will continue to cultivate a strong talent pipeline, nurturing individuals with innovative mindsets and practical skills, thus revitalizing the high-quality productive forces in China.
DONG: Avnet fully supports China's focus on developing new quality productive forces to drive industrial upgrades and high-quality development. Our commitment to providing advanced semiconductor technology and robust supply chain services fosters innovation and delivers valuable industry expertise. Rooted in the Chinese mainland for 30 years, we have continuously aligned our investments and operations with the country's evolving priorities. Over a decade ago, we established a dedicated automotive division, enabling us to actively contribute to the rapid advancements of China's new energy vehicle industry. Moving forward, we will continue leveraging our technical expertise, ecosystem partnerships and global resources to accelerate technological innovation, strengthen supply chain resilience and support China's transformation into a high-tech manufacturing powerhouse.
LING: We see this as a crucial advantage in the competitive regional and global market. For over 90 years, Roehm has been at the forefront in providing premium upstream materials and high-performance plastics for innovative applications across industries, continuously meeting challenges head-on. In recent years, we have significantly increased our investment in production facilities and R&D capabilities to meet the growing demand of local customers. Our vision is to collaborate closely with partners along the value chain in China, fostering "high-end manufacturing" and "green manufacturing". We are proud to contribute to Chinese companies' high-quality products going global.
Q3 DeepSeek has been a buzzword and surprised the world starting this year. AI technology has been deeply integrated with various industries around the world. What opportunities do you foresee for your business from AI technology? What's your view on China's ability to sustain innovation in breakthrough technologies in the coming years?
MA: China's remarkable progress in artificial intelligence and its application, big data and automation has transformed itself into an ideal strategic testing ground for VF. In China, we pioneer groundbreaking innovations, collect invaluable consumer insights, and refine successful models to replicate across international markets.
Through strategic partnerships with local experts, we are redefining consumer experiences through augmented reality-powered virtual fitting rooms and AI-driven shopping assistants, creating a seamless integration between online and brick-and-mortar retail. VF's recent e-commerce, content creation and AI application enable a wider consumer reach while significantly improving our operational efficiency.
TAN: In recent years, Skechers has been dedicated to implementing transformative changes and accelerating digital transformation, emphasizing the enhancement of our omnichannel retail ecosystem. We have incorporated AI into various aspects of our operations, such as store management and employee training. AI technologies have the potential to significantly improve efficiency across production, logistics and sales processes. Furthermore, it allows us to gain deeper insights into consumer behavior and preferences, forecast market trends and identify emerging opportunities, thereby unlocking new possibilities for innovation growth.
We have observed that China places significant emphasis on technological innovation and actively fosters the advancement of new quality productive forces, creating a supportive environment for research, development and innovation.
DONG: The rise of DeepSeek and the integration of AI across industries present significant opportunities for Avnet. We are well positioned to support the rapid growth of AI-driven sectors such as data centers, cloud computing, intelligent manufacturing, healthcare and autonomous driving. Our high-performance products are increasingly aligned with the evolving needs of these industries. In the semiconductor space, we see great potential as domestic CPUs integrate with AI models like DeepSeek, driving further optimization and performance improvements. With China's increasing role in AI innovation, Avnet is confident in the country's ability to sustain breakthroughs. Supported by strong policies and a thriving tech ecosystem, China is transforming from "made in China" to "innovate in China", and Avnet is excited to contribute to this evolution.
LING: The development of AI technology is unstoppable and will significantly enhance human technological productivity. We need to proactively embrace AI and the transformative changes it brings. Our company has already started integrating AI to improve efficiency in production and operations. The emergence of DeepSeek is truly exciting and showcases China's innovation capability and inclusiveness. With the continuous optimization of China's innovation ecosystem, there is no doubt that we will witness more breakthrough innovations and creations in the coming years. This environment fosters collaboration and creativity, enabling companies like Roehm to thrive and contribute to high-quality development.
Q4 Driving domestic consumption is one of the top priorities for China to spur economic growth this year. How do you see China's potential to drive a consumption-led impetus for the economy? How will that affect your company's profitability this year?
MA: China's potential to drive a consumption-led engine for the economy is substantial. The government has rolled out a series of targeted policies. For instance, issuing consumer vouchers injects purchasing power into the market. This not only encourages consumers to spend, but also revitalizes various sectors, from retail to services. Support for industries such as outdoor sports and tourism cultivates a thriving consumer trend, driving demand for related products and services. We expect continued consumer engagement as stimulus plans are provided throughout the year. Domestic consumption growth has positively impacted our business. As the outdoor industry continues to grow rapidly, the number of outdoor and travel participants are expected to reach 500 million by the end of 2025. This creates exciting potential for our brands as we continue to create high-quality and innovative products.
TAN: The robust development of China's consumer market offers significant opportunities for Skechers' business growth. We will continue to innovate by focusing on consumer needs, optimizing product design and distribution channels, and increasing investments in niche markets such as outdoor, kids and professional sports. By capitalizing on these opportunities for consumption growth, we aim to boost our profitability. China is one of the most dynamic consumer markets globally. With the ongoing recovery of the Chinese economy and the consistent rise in household income levels, the trend of consumption upgrading is increasingly evident. Consumers are showing a growing demand for high-quality, personalized products and services. In the meantime, the government has implemented a series of policies to stimulate consumption, injecting strong momentum into economic growth.
DONG: The complex global economy, with trade uncertainties and slowdowns, challenges Chinese businesses. Inventory accumulation, margin pressures and industrial shifts are key concerns. Stimulating domestic consumption is vital to counter these pressures, revitalizing the market and fostering sustainable growth. China's vast consumer base, alongside government initiatives, offer significant opportunities. Avnet, with its long-term China presence, acknowledges this potential. Recent sales growth and order recovery signal positive momentum. We remain dedicated to supporting Chinese enterprises through robust supply chain solutions and technical expertise, enabling them to navigate this dynamic environment. While recognizing challenges, we are optimistic about China's domestic market and its capacity to drive economic advancement, contributing to a resilient future.
LING: China's potential to drive a consumption-led economy is substantial, given its large and growing middle-income group. The increasing demand for high-quality goods and services, particularly in sectors such as construction, automotive, and healthcare, aligns well with our product offerings of methyl methacrylate, polymethyl methacrylate and methacrylate resins. As consumer preferences shift toward premium and high-end products, our company is well positioned to benefit from this trend. We anticipate that the focus on domestic consumption will create new opportunities for growth and innovation in the chemical industry. By catering to the evolving needs of the market, we can enhance our product portfolio and strengthen our competitive advantage.
Q5 As China continues to pursue high-quality development along a Chinese path to modernization, what opportunities do you anticipate for your business as this process gains more traction? Will you increase investment in China in the coming years? How will you further expand your footprint in China?
MA: China's pursuit of high-quality development along its path to modernization presents substantial growth opportunities for VF. As a fast-growing and our second-largest market, China is strategically important to us and VF will continue to invest in the country.
With its vast consumer base and rising demand for premium outdoor and lifestyle products, we believe China could become our largest market across the world over time.
At VF, we focus on consumer-driven innovation and elevated brand experiences to promote an active lifestyle. Leveraging data insights, we design and create performance-driven products tailored to local needs, from sunproof jackets for summer treks to long down jackets for winter expeditions.
TAN: The consumption habits and lifestyles of Chinese consumers are transforming, with an increasing focus on fitness, health, comfort and personalization. These trends align closely with Skechers' growth strategy. Our products and services cater to the diverse needs of consumers, positioning us to gain greater consumer favor and capture a larger market share.
China is Skechers' biggest overseas market, and we believe in its potential. We will increase our investment in China in the coming years.
Skechers follows the "In China, For China" strategy. We have already invested over 3 billion yuan ($414.6 million) in building the Skechers China logistics center in Taicang (phases I and II), Jiangsu province, as well as more than 60 million yuan in setting up the Asia-Pacific product R&D center and China livestreaming base in Dongguan, Guangdong province.
These investments offer strong support for Skechers to extend its business presence.
DONG: Guided by our core values — integrity, customer focus, ownership, inclusiveness and teamwork — we fully embrace China's modernization. Avnet, serving thousands of customers across over 20 Chinese cities, has built a strong foundation. We foresee increased demand for our technologies in key sectors like EVs and AI, and will invest accordingly, enhancing our technical and logistics infrastructure. Our confidence in China's development remains unwavering. Upholding our values, we'll deepen local partnerships and foster talent. Expanding our regional footprint, we're dedicated to supporting China's journey. Leveraging global expertise, we're committed to long-term partnerships.
LING: Achieving high-quality development in China aligns perfectly with Roehm's development strategy. Our integrated site in Shanghai has been certified with ISCC PLUS, a globally recognized sustainability certification system, ensuring the traceability and sustainability of bio-based, renewable and circular raw materials. This certification provides our customers with more choices in sustainable products.
Our expanded PMMA production capacity and the Roehm Asia Technology Center in Shanghai exemplify our commitment to innovation and local collaboration. These facilities enable us to work closely with local customers, helping them develop innovative applications from an early stage and seize opportunities presented by industrial upgrades in sectors such as automotive and healthcare.
