Core Viewpoint - The participation of multinational companies from developed economies in the China International Import Expo (CIIE) is driven by the desire to access China's vast market, its role as a manufacturing hub, and the potential for achieving economies of scale [1][2][3]. Group 1: Motivations for Participation in CIIE - Multinational companies value China's large and effective purchasing power market, being the second-largest importer globally after the U.S. [1] - China serves as a central hub for manufacturing, allowing foreign companies to sell intermediate and capital goods, which are then processed into final consumer products for global markets [1][2]. - The potential for achieving industry and enterprise scale economies in China is attractive, as it allows foreign firms to maximize average cost efficiency and gain monopoly profits [2]. Group 2: China's Trade Strategy - China aims to counter external pressures, such as U.S. supply chain reshaping, by signing more regional and multilateral free trade agreements, including RCEP and CPTPP [3]. - The implementation of unilateral visa-free policies for developed economies and the promotion of cross-border e-commerce are part of China's strategy to enhance trade facilitation [4]. Group 3: Unique Features of CIIE - The eighth CIIE introduced a special zone for products from underdeveloped economies, offering zero tariffs to help them access the market [5]. - The expo has expanded from a national to a provincial level, encouraging local government collaboration with foreign entities [5]. - Cross-border e-commerce is highlighted as a key feature, enabling small and medium enterprises to enter the Chinese market effectively [6]. Group 4: CIIE's Role Against Trade Protectionism - CIIE exemplifies China's commitment to multilateral free trade policies, promoting high-standard trade agreements to counteract protectionism [8]. - The expo facilitates the integration of domestic and international supply chains, particularly in key industries like photovoltaics and electric vehicles [8]. - Institutional reforms, such as visa facilitation and digital currency payment options, are seen as effective measures against trade protectionism [8]. Group 5: Integration into China's Ecosystem - For multinational companies, CIIE serves as a vital channel for integrating into China's economic ecosystem, especially for those familiar with the Chinese market since the 1980s [9]. - The expo provides opportunities for underdeveloped economies to find business prospects in China, thereby expanding China's economic ecosystem [9][10]. Group 6: CIIE's Broader Impact - CIIE acts as a connector between domestic and international markets, supporting the Belt and Road Initiative and fostering communication with underdeveloped economies [10]. - The expo's cross-border e-commerce platform addresses information asymmetry and reduces costs, allowing more small and medium enterprises to participate [10]. - By promoting multilateral trade and opposing protectionism, CIIE strengthens China's position in global trade dynamics [11].

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