Editor's note: After the release of China's first-half economic data, China Daily invited chief executives and senior leaders from key multinational companies to share their perspectives on the world's second-largest economy. Their insights go beyond short-term growth, offering a closer look at the evolving "China Opportunity 2.0" narrative amid ongoing debate over the so-called "China Shock 2.0".
Kilian Aviles, executive vice-president of Dekra Group and head of Asia-Pacific region
Q1 Many multinational companies in recent years continue to expand their investment and operations in China, suggesting that "China Opportunity 2.0" is increasingly offsetting the "China Shock 2.0" narrative. What developments or evidence best demonstrate that China is creating new opportunities for global businesses rather than posing a "shock"?
AVILES: From Dekra's decades-long on-the-ground presence and continuous investment expansion in China, the so-called "China Shock 2.0" narrative is fundamentally misplaced and decoupled from market realities. What we are witnessing is a fully mature, upgraded "China Opportunity 2.0" that delivers structural, long-term value for global enterprises, far outweighing perceived market risks. The most compelling evidence lies in the industry upgrading and high-value industrial ecosystem iteration taking place across the country. China has evolved into a global hub for high-end manufacturing, new energy, intelligent connected vehicles, digital economy and green low-carbon industries. This industrial upgrade has created entirely new service and cooperation tracks for multinational companies.
MUSTO: For Merck, we view China as an innovation powerhouse, not just a market. The evidence for "China Opportunity 2.0" is compelling. An aging population, a rising burden of chronic diseases, and the government's continued investment in and commitment to healthcare are creating real, long-term demand. What gives us particular confidence is the country's growing role in co-developing global innovation, all pointing to a maturing ecosystem that rewards serious, long-term partners. At Merck, we are proud to be exactly that kind of partner. Our dual-engine strategy combines our internal R&D with external innovation partnerships. Our aim is clear: to deliver more medicines to more patients, faster.
TAN: From Skechers' on-the-ground experience in China, we can clearly feel the tangible new market opportunities brought by China's development. Our brand has rooted itself in the Chinese mainland market for nearly two decades, always following the development philosophy of "In China, For China, With China". We keep increasing long-term fixed-asset investment in the country as a concrete response to China's development dividends. We have invested over 4.2 billion yuan ($621 million) to build our exclusive China logistics center in Taicang, Jiangsu province, expanded local R&D and livestreaming operation bases in Dongguan, Guangdong province, and realized localized production for more than 90 percent of products sold in China. Consumption upgrading focused on health and fitness brought by China's domestic demand expansion has created stable growth space for our comfort-oriented sportswear products. All these practical layouts and operational gains prove the real, long-term value of "China Opportunity 2.0" for Skechers.
BAO: From Kone's perspective, one of the clearest signs is that China is not only a major market, but a critical part of Kone's global manufacturing and innovation network. We operate our largest manufacturing facility in China, together with our largest R&D center outside Finland. Today, China is not only serving its domestic market, but also acting as a key export base, with products shipped to more than 100 countries and regions around the world. Equally important, our supply chain is highly localized and deeply integrated into the Chinese ecosystem, with 99 percent of components sourced locally. This enables us to combine global quality standards with local speed, flexibility and resilience. For a multinational company, that reflects a business environment with real industrial depth and operating efficiency.
Andre Musto, managing director and general manager of Merck Healthcare China
Q2 China's economy has demonstrated strong resilience so far this year, supported by resilient exports, solid industrial production and continued strength in high-tech manufacturing. How would you assess China's overall economic performance so far this year? Looking ahead, what do you see as the key drivers supporting China's growth in the second half?
AVILES: Overall, China's economic performance this year has been remarkably resilient, structurally optimized and quality-focused, showing strong anti-risk capability and endogenous growth momentum amid global economic volatility and sluggish external demand. The steady growth of industrial production, robust export performance and outstanding high-tech manufacturing development are not short-term sporadic gains, but concrete results of sustained industrial transformation and policy support. From Dekra's frontline operational view, consistent rising demand for testing and certification services for electric vehicles, energy storage and smart equipment clearly mirrors the vitality of China's emerging industries.
MUSTO: From where we stand as a science and technology company with deep roots in China, the resilience of China's economy this year has been both notable and — frankly — not surprising to those of us who have been here for the long term. China is our second-largest country market worldwide, and we have been here for more than 90 years. The fundamentals driving our confidence in the second half are clear: strong unmet patient need, a policy environment that increasingly rewards innovation, and a local ecosystem that is maturing fast in science, speed, and execution. What excites us most is that China is no longer just a major healthcare market — it is becoming a global innovation engine. China now represents around 30 percent of the global innovative drug research and development pipeline. This is a country that is shaping the future of healthcare, not just consuming it, and Merck intends to grow with it.
TAN: Amid a complex and volatile global environment, China's economy this year has demonstrated strong structural resilience overall. Three core growth drivers will continue to support the economic upturn in the second half. First, the full release of domestic demand potential: policies to expand domestic demand are continuing to boost consumer confidence, and growing health awareness is driving sports consumption — the professional sports segment is also a key area of our focus. Second, new quality productive forces represented by artificial intelligence and digitalization: industrial digitalization, smart supply chains and big-data operations are enhancing overall efficiency. Skechers is fully deploying AI-powered digital systems for refined customer operations. Third, high-standard opening-up: policies that optimize the foreign investment environment continue to attract multinationals to deepen their localization efforts.
BAO: From our perspective, China's economy has continued to show resilience, especially in areas supported by industrial capability, localized supply chains and long-term urban development needs. For companies operating in the real economy, this resilience is reflected not only in macro indicators, but also in the market's ability to sustain production, respond to evolving demand and support efficient delivery. Looking ahead, we see modernization as one of the greatest growth opportunities in China. The country has the world's largest installed base of elevators and escalators, and a growing number of these units is now reaching the stage where modernization is needed. This is creating strong long-term demand for safer, smarter and more energy-efficient solutions.
Willie Tan, CEO of Skechers China, South Korea and Southeast Asia
Q3 China's innovation ecosystem has become an increasingly important engine of growth. How do you assess the contribution of artificial intelligence and other frontier technologies to China's productivity growth, industrial upgrading and long-term economic resilience? More broadly, what significance does China's innovation have for global technological progress and the opportunities available to foreign companies?
AVILES: China's innovation ecosystem, led by AI, digital technology and green frontier technologies, has become the core engine of its long-term economic resilience and industrial upgrading, bringing profound and positive changes to productivity improvement and global technological progress. Domestically, frontier technologies are reshaping China's industrial development logic. AI and digital technologies are empowering traditional manufacturing with intelligent transformation, significantly improving production efficiency, product quality and industrial matching accuracy. In high-end manufacturing, new energy and intelligent transportation fields, technological iteration and scenario verification in China's super-large market have accelerated industrial maturity, promoted the upgrading of industrial standards, and greatly enhanced the overall competitiveness of China's industrial chain.
MUSTO: AI and frontier technologies are reshaping how we accelerate innovation — from drug discovery through clinical development to patient services. China possesses a unique strategic advantage: it combines innovation capability with remarkable speed in real-world execution. China's healthcare industry is advancing at a remarkable pace. China speed is not just a phrase — it is a reminder fueling global innovation through the momentum of China's development. The creativity and talent we see here, together with the continued evolution of the regulatory environment, are inspiring. We believe in the potential of China's innovation ecosystem, and we want to be active participants in it. That means co-developing, co-innovating, and building real partnerships with the companies that are defining the future of medicine in China and globally.
TAN: AI and other frontier digital technologies serve as a core pillar for China's industrial upgrading and long-term economic resilience, driving marked efficiency improvements across the entire manufacturing, retail and logistics value chains. For multinational companies, China's mature AI deployment ecosystems, massive consumer data pools and well-developed supportive industrial chains present a unique testing ground for overseas brands to refine their global digital operating models. Skechers is steadily advancing its digital transformation. At this stage, AI is primarily deployed for the production of graphic and short-video marketing materials as well as routine document processing, substantially shortening content delivery lead times. Intelligent upgrades for supply chain management and consumer operations remain an ongoing area of exploration.
BAO: We see the contribution of AI and frontier technologies most clearly in their practical application. A good example is the new Huanggang Port project — a landmark cross-border transport hub in Shenzhen, Guangdong province. Building on our long-term strategy in the Guangdong-Hong Kong-Macao Greater Bay Area, Kone is one of the few companies capable of delivering fully integrated people flow solutions while meeting the distinct regulatory and industry standards of both the Chinese mainland and Hong Kong. For this project, Kone supplied all 184 elevators and escalators, supported by AI-enabled connected services that continuously monitor equipment health and enable predictive maintenance.
Joe Bao, president of Kone China
Q4 China has placed greater emphasis on expanding domestic demand while pursuing high-standard opening-up. How do you assess these efforts? What new opportunities do they create for multinational companies and global investors?
AVILES: China's drive of expanding domestic demand and advancing high-standard opening-up is highly strategic, targeted and far-sighted. It not only optimizes China's own economic growth structure, but also creates a more open and transparent market environment for global businesses, bringing unprecedented incremental opportunities for multinational investors. The expansion of domestic demand is shifting China's market growth from export-driven to being driven by both domestic and external demand, generating massive high-end market demand. The upgrading of household consumption and the iterative upgrading of industrial investment demand have spawned huge market needs in high-end manufacturing, green environmental protection, digital services, product testing and certification, and intelligent solutions. This allows multinational companies, including Dekra, to deeply participate in the whole industrial chain of local market development, enjoying the dividends of China's consumption upgrade and industrial upgrade.
MUSTO: These efforts reflect China's strategic focus on long-term, sustainable development. High-standard opening-up establishes clear rules, transparent market access and predictable regulatory pathways. Expanding domestic demand is equally critical. China's aging population and rising healthcare spending power mean more patients seeking innovation. That demand is real and growing fast. For multinational companies like Merck, this environment is compelling. We see a market that genuinely welcomes high-quality innovation and is willing to build the infrastructure to support it.
TAN: China's move to expand domestic demand and pursue high-standard opening-up is creating structural opportunities for multinational corporations. The expansion of domestic demand is unlocking the vast potential of the super-sized market, with various consumption-boosting policies raising consumer willingness to spend. Rising demand for health and fitness activities has enabled us to reach more Chinese households with our comfort technology products, offering significant room for brand growth. At the same time, the country's commitment to high-standard opening-up is delivering a fairer, more transparent and predictable business environment, reducing operational uncertainties for foreign companies. For global investors, China offers a unique combination of market scale, innovation capabilities and supply chain integration. We have directly felt the benefits: our direct retail operations continue to grow, and our local partnerships have deepened, reinforcing our confidence in long-term investment.
BAO: From our perspective, these efforts are creating opportunities by expanding demand while also raising expectations for quality, efficiency and service. In our industry, this is especially visible in modernization. As a growing number of China's installed elevators reach the stage where renewal is needed, the opportunity is no longer just about replacing equipment, it is about how to do so with minimal disruption while improving safety, energy efficiency and user experience. As we have said before, the real challenge is not simply replacing equipment. Cities never stop operating, and buildings cannot afford prolonged disruptions. Modernization needs to happen while everyday life continues. That is why execution and delivery models matter as much as technology itself.
Q5 Looking ahead to the second half of the year, what will you be watching most closely as indicators of China's economic resilience, reform progress and long-term growth potential?
AVILES: To evaluate China's economic resilience, reform execution and long-term growth potential in the second half, I will track five core structural indicators closely tied to industrial development trends. First, growth momentum of strategic emerging industries such as new energy storage and intelligent connected vehicles, which shapes China's core industrial competitiveness. Second, implementation progress of high-standard opening-up policies, covering services sector liberalization and cross-border standard mutual recognition, which reflects China's commitment to global collaboration. Third, structural recovery of high-end manufacturing investment and service consumption, the fundamental endogenous growth driver. Fourth, progress in integrating Chinese industry standards with international frameworks. Fifth, tangible results of nationwide digital and carbon-neutral transformation.
MUSTO: Looking at the second half, I'm optimistic about what I'm seeing in China's healthcare transformation. First, the speed of innovation reaching patients continues to accelerate. We're witnessing regulatory frameworks and market dynamics that are enabling faster access. Second, China is building more sophisticated reimbursement frameworks that balance patient access with system sustainability. That's exactly the kind of thoughtful policymaking that supports long-term innovation. Third, China's openness to global partnerships and investment is creating a collaborative ecosystem. The infrastructure for clinical trials, talent attraction and cross-border innovation is maturing rapidly. For Merck, this clarity and progress reinforce our conviction. We're deepening our long-term commitment to China and we want to be active participants in China's healthcare ecosystem.
TAN: In the second half, I will track core indicators across two dimensions to assess economic resilience — reform implementation and long-term growth potential. First, consumption recovery indicators that reflect the resilience of the market foundation: I will monitor foot traffic in national commercial districts and outlet malls, the penetration rate of instant retail nationwide, consumer confidence indices, and sales growth in professional sports and youth-related categories. Only when these segments show steady recovery can we confirm that the domestic demand engine is effectively offsetting external risks. Second, the progress of policy reforms related to opening-up and digital upgrading. This includes the effectiveness of foreign investment support policies, supportive measures for multinational R&D centers, and the pace of industrial digital infrastructure construction.
BAO: One of the things we will watch closely is whether rising demand can continue to be matched by responsive and efficient execution. As China's urban renewal continues to accelerate, consumer needs are becoming increasingly tailored and time-sensitive. In that context, resilience is reflected not only in demand itself, but also in how quickly companies can respond and deliver. That is why supply chain responsiveness is an important indicator for us. Last year, we established a smart logistics and assembly center in Shenzhen to better serve the markets in the Guangdong-Hong Kong-Macao Greater Bay Area. We are already seeing clear improvements in delivery efficiency. We will also continue to watch whether policy support for urban renewal and equipment renewal translates into concrete project execution.
