Multiple foreign firms report robust performance in Chinese market in Q1
Global Times
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A view of the Lujiazui area in Shanghai Photo: VCG

A view of the Lujiazui area in Shanghai (Photo: VCG)

Multiple foreign enterprises from sectors including food and beverage and electric vehicles posted sound performances in the Chinese market in the first quarter amid the country's better-than-expected economic growth and policy measures to effectively expand domestic demand.

Ian Borden, chief financial officer of McDonald's, said during the earnings call on Thursday (US time) that the company maintained its share in China between January and March and stressed that the company continues to execute its strategy to "capture the long-term growth potential of the market."

"We remain on track to open approximately 1,000 new restaurants in China this year," Borden said, according to a transcript of the conference.

In the first quarter, US beverage giant Coca-Cola said its global unit case volume grew 3 percent, highlighting the leading role of the Chinese market, according to a release sent to the Global Times.

Coca-Cola China said it continued to accelerate supply chain expansion in the Chinese market. In April, Zhuhai Coca‑Cola's Jinwan New Plant was officially inaugurated. As a key production and sales base for the Coca‑Cola China system in southern China, the facility represents a total investment of approximately 835 million yuan ($122.7 million), with 15 planned production lines, it said.

Aside from food and beverage giants, Tesla's deliveries of Model 3 and Model Y vehicles built at its Shanghai ⁠plant, including those exported to Europe and other markets, totaled 79,478 units in April, representing year-on-year growth of 36 percent, China Passenger Car Association data showed on Thursday.

The strong performance of these foreign companies in the Chinese market can be primarily attributed to the resilience of the Chinese economy, the continuously optimized business environment, and the ultra-large market, Li Chang'an, an economist at the University of International Business and Economics, told the Global Times on Friday.

"With a population of over 1.4 billion, a globally unparalleled industrial system, and a per capita GDP surpassing $10,000, China is the world's most promising consumer market. China's ultra-large market is also a huge opportunity for the world," Li said.

According to data released by the Ministry of Commerce on April 24, 13,987 new overseas-invested enterprises were established in the Chinese mainland in the first quarter, representing a year-on-year growth of 11 percent. The actual use of foreign direct investment in high-tech industries went up 30.7 percent year-on-year to 102.73 billion yuan, accounting for 41.2 percent of the total, the data showed.

Just recently, Chinese e-commerce platform JD.com and French luxury brand Chanel have forged a strategic partnership, as a Chanel Fragrance and Beauty flagship store was formally launched on the platform, JD.com told the Global Times on Friday.

According to media reports, this marks Chanel Beauty's fourth official e-commerce channel in China, following its existing official online boutique, Tmall flagship store, and WeChat boutique.

The expanded presence of Chanel in China came amid the country's efforts to expand domestic demand and build a robust domestic market.

At a press briefing on April 17, the National Development and Reform Commission (NDRC), the country's top economic planner, announced that China will formulate and implement a dedicated action plan for expanding domestic demand covering 2026 to 2030.

The NDRC also pledged to keep a package of comprehensive policy measures in the pipeline and deploy them in a timely manner as conditions warrant.