Core Viewpoint - Schneider Electric has consistently participated in the China International Import Expo (CIIE) since its inception in 2018, showcasing its commitment to the Chinese market and emphasizing the increasing proportion of original products developed in China [1][2]. Group 1: Company Commitment and Strategy - Schneider Electric has been operating in China for 38 years and considers it its second-largest global market and a key supply chain and R&D base [1]. - The company is committed to its "China-centered" strategy, focusing on digital technology, ecological cooperation, and industrial applications to drive transformation in key sectors such as data centers, oil and gas, and zero-carbon parks [1][3]. - The company has established an agile mechanism integrating R&D, production, and sales, continuously investing in talent and ecological cooperation to better meet local market demands [3]. Group 2: Product Innovation and Market Response - At the CIIE, Schneider Electric introduced several innovative products, including the BlokSeT low-voltage switchgear and the upgraded MasterPacT MTZ air circuit breaker, which was launched simultaneously from its Shanghai factory [2]. - The company reported a 26% increase in signed contracts at the 2024 CIIE compared to the previous year, indicating strong market demand for its innovative solutions [2]. - Schneider Electric's environmentally friendly switchgear, developed in China, has been widely adopted globally, contributing to sustainability efforts by reducing greenhouse gas emissions [2]. Group 3: Global Market Strategy - Schneider Electric views China as a vital strategic hub for expanding its global business, leveraging the country's market vitality and scale [3]. - The company aims to enhance its investments in China, emphasizing that its operations not only serve the local market but also enable Chinese innovations to be exported globally [3].

Core Insights - The transformation of China from a global manufacturing base to an integrated innovation hub is highlighted, with increasing foreign investment focusing on research and development [1][6] - The "14th Five-Year Plan" aims to attract and utilize foreign investment more effectively, with specific quantitative targets set for high-tech industries [2][4] - Despite fluctuations in foreign investment, China has maintained a high level of foreign capital inflow, with significant growth in specific sectors [3][6] Group 1: Foreign Investment Trends - The actual foreign investment in China reached approximately 600 billion USD from 2021 to 2024, with a target of 700 billion USD by 2025 [2] - In 2021, the actual foreign investment was 1,149.36 billion CNY, showing a year-on-year growth of 14.9%, while in 2023, it decreased by 8% to 1,133.91 billion CNY [3] - The number of newly established foreign-invested enterprises in China increased by 39.7% in 2023, indicating continued interest despite global uncertainties [4][6] Group 2: Sector-Specific Developments - High-tech manufacturing accounted for 11.7% of actual foreign investment in 2024, with significant growth in medical equipment and computer manufacturing sectors [6] - Notable foreign investments include Roche's 2.04 billion CNY investment in Shanghai and Siemens' ongoing development of a core component R&D base in Shenzhen [6] - Schneider Electric emphasizes the importance of aligning with Chinese market logic, indicating a shift towards localized R&D and production [7] Group 3: Policy and Strategic Initiatives - The Chinese government is actively promoting the opening of service sectors, with 155 pilot tasks identified to enhance foreign investment [8][9] - The Ministry of Commerce plans to further relax foreign investment market access in various sectors, including cloud computing and biotechnology [9][10] - The "14th Five-Year Plan" outlines a vision for China to become a major destination for foreign investment, enhancing its competitive advantages in the next decade [10][11]