International consulting giant EY praised China's efforts to open up, emphasizing the significance of the Hainan Free Trade Port (FTP) as a key platform for foreign businesses.
In an interview with China Global Television Network (CGTN), Denis Cheng, consumer sector leader at EY Greater China, said the Chinese government's favorable policies are actively encouraging foreign businesses and investment to expand into the Chinese market.
"We can see that the Chinese government, I mean, how determined they are in opening the Chinese market. At this expo, we have all these brands -- local brands, multinational brands -- here talking about collaboration and exploring opportunities going forward. We've seen a lot of central government policies supporting this as well. They do welcome foreign companies to come over, set up their companies here, and have some presence in China, so I think it's a great platform," he said.
Cheng noted that China's consumer market is undergoing a shift, with buyers becoming more discerning and placing greater value on quality, innovation, and international standards. He emphasized that this evolution presents both opportunities and challenges for foreign companies seeking to succeed in China.
"First of all, it's a huge market here in China. Consumers are more sophisticated than before. They are not looking for just pricing, or the lowest price will win them. They look for quality. They also want to learn what's good overseas. They look at all the ingredients, all the functions, or technologies. So I think they're more sophisticated. They've been educated over the past years. So I think these foreign companies coming over to China would definitely help to groom the market in China. We would say that it's upgraded consumption. But at the same time, for the Chinese company here, all the Chinese consumers, they're educating our foreign companies, too. They're telling them what they like. They want them to understand them more, they want them to understand the Chinese culture as well. So whoever can meet the consumers' expectations will win this market," Cheng said.
EY China, together with the Hainan Department of Commerce and the Hainan International Economic Development Bureau (IEDB), released a report on the Hainan Free Trade Port in 2021, highlighting Hainan’s overall growth as a key international trade hub.
Cheng believes Hainan’s strengths in attracting foreign investment, developing retail infrastructure, and promoting tourism will play a key role in driving consumer spending.
"The Chinese government is determined to open the market globally. This year is very crucial to Hainan because it's the customs-closure year. We know that some of the companies or big retail or real estate developers are investing in Hainan – like this EY Group -- they have a huge shopping center in Sanya. So it's a mix of duty-free with the non-duty-free goods. How that is mixed together in a complex provides people with a different shopping experience, and stuff like that definitely would increase tourism as well. So through this tourism, which is just part of the reason, that will also boost the consumption," said Cheng.
International consulting executive hails China’s push to open market
