Core Insights - Business leaders are focusing strategic investments on artificial intelligence, talent development, and risk resilience to support and drive future growth [1][2] - A report by KPMG based on a survey of over 1,300 CEOs indicates that many companies are actively adjusting their growth strategies to respond to the current complex environment [1] Investment Focus - Nearly three-quarters of CEOs have identified artificial intelligence as a key investment area for 2026, with 69% planning to allocate 10% to 20% of their budgets to this field within the next year [1] - The acceleration of AI adoption globally presents new challenges for boards, with CEOs expressing concerns about ethical implications, data readiness, and regulatory gaps [1] Confidence in Economic Growth - 88% of Chinese CEOs express confidence in the development of the Chinese economy over the next three years, a significant increase compared to the previous year [2] - The recognition of AI's value among Chinese CEOs has notably increased, driven by the deepening implementation of the "AI+" strategy and the maturation of the industrial ecosystem [2] Commitment to Sustainability - Despite varying attitudes towards environmental, social, and governance (ESG) issues across regions, most business leaders remain committed to achieving sustainability goals, with increasing confidence in realizing these visions [2] - 61% of surveyed CEOs are confident in achieving net-zero emissions by 2030, indicating a growing belief in the business community's ability to meet long-term climate objectives [2]

Core Insights - CEO confidence in the global economy has dropped to its lowest point in five years, according to KPMG's "2025 Global CEO Outlook" [1] - To sustain and drive future growth, corporate leaders are focusing strategic investments on three key areas: artificial intelligence, talent development, and risk resilience [1] Summary by Categories Economic Outlook - The survey, which included over 1,300 CEOs globally, indicates a cautious outlook among CEOs due to ongoing geopolitical tensions and economic uncertainties [1] Confidence in China - 88% of Chinese CEOs express confidence in the development of China's economy over the next three years, a significant increase compared to the previous year [1] Artificial Intelligence Investment - There is a notable increase in the recognition of artificial intelligence's value among Chinese CEOs, with 86% expecting to see a return on investment from AI within three years, a substantial rise from 18% last year [1]

Core Insights - The report by KPMG highlights that corporate leaders are focusing strategic investments on artificial intelligence, talent development, and risk resilience to drive future growth [1][2] - There is a notable shift in CEO confidence regarding the global economy, with only 68% expressing confidence compared to 72% last year, while confidence in the Chinese economy has increased significantly [1] - The survey indicates a strong belief among Chinese CEOs in the value of artificial intelligence, with 86% expecting to see returns on AI investments within three years, a significant increase from 18% last year [2] Group 1 - 68% of CEOs are confident about the global economic outlook, down from 72% last year [1] - 58% of Chinese CEOs are confident about global economic growth over the next three years, a decrease of 13 percentage points from the previous year [1] - 88% of Chinese CEOs are confident about the development of the Chinese economy over the next three years, an increase of 17 percentage points and a recent high [1] Group 2 - The shift in CEO confidence reflects a transition from external environmental concerns to internal growth drivers, focusing on strategic investments in AI, organizational change, and risk resilience [1] - The acceleration in recognizing the value of artificial intelligence among Chinese CEOs indicates a profound transformation in future industry competition [2]

Core Viewpoint - The Trump administration is drafting an executive order that will impose three major restrictions on commercial transactions involving Chinese innovative drug patents or rights, focusing on national security reviews by the Committee on Foreign Investment in the United States (CFIUS) [1][2]. Summary by Sections Executive Order Details - The draft includes three main provisions: 1. Inclusion of Chinese innovative drug BD transactions in the CFIUS mandatory review list, ending the previous "low-risk automatic exemption" practice [2]. 2. FDA will implement "racial sensitivity supplementary reviews" for drugs relying on Chinese clinical data, requiring at least 20% comparative data from non-Asian populations [2]. 3. Establishment of a "key drug domestic production fund" to provide production subsidies for 15 categories of drugs, including antibiotics and acetaminophen, while implementing a "domestic priority" principle in federal procurement [2]. Market Reaction - The market reacted swiftly to the policy risks, with the Hong Kong innovative drug index (HK1105) dropping 3.82% on September 11, 2025, and the A-share innovative drug sector (BK1106) declining 2.17%, with over 80% of stocks in the sector experiencing pullbacks [3]. - The following day, the indices showed signs of recovery, indicating investors' responses to policy uncertainties and rational corrections [3]. Globalization Trends - Despite the geopolitical risks, the trend of Chinese innovative drugs going global remains intact, with total license-out transactions to Europe and the U.S. reaching $9.43 billion as of September 2025 [3]. - Major transactions include a $950 million licensing deal between BeiGene and Royalty Pharma, and a $6 billion global licensing agreement between 3SBio and Pfizer, highlighting a shift towards milestone payments and regional licensing [3]. Industry Challenges - The domestic market faces challenges, with annual growth in medical insurance fund spending (approximately 12%) lagging behind the growth in innovative drug R&D investment (approximately 25%) [4]. - The average reduction in medical negotiations remains high at 54%, and commercial health insurance coverage for innovative drugs is below 15%, creating a supply-demand imbalance that necessitates going global [4]. Risk Resilience Assessment - Goldman Sachs has categorized Chinese innovative drug companies into three risk resilience tiers based on their sensitivity to policy changes and operational capabilities [4][5]. - Companies with mature global layouts exhibit the strongest resilience, while those heavily reliant on domestic markets show the weakest resilience [5][10]. Strategic Defense Framework - A three-dimensional defense system is proposed to address risks associated with the executive order, focusing on transaction review, data compliance, and supply chain security [13]. - Strategies include conducting national security risk pre-assessments for transactions over $50 million and establishing partnerships with U.S. law firms to navigate regulatory challenges [14][15]. Conclusion - The construction of a quantifiable "risk resilience index" is essential for Chinese innovative drugs in the global 2.0 era, emphasizing the need for companies to embed policy hedging clauses in transaction structures and consider racial diversity data in clinical stages [23].