Core Insights - The 8th China International Import Expo (CIIE) is being held in Shanghai from November 5 to 10, showcasing the growing importance of "digital consumption" and "green low-carbon" as key themes for high-quality development in China [1] Group 1: Multinational Companies' Strategies - Multinational companies are increasingly confident in aligning their core strengths with China's long-term goals in digital transformation, sustainable development, and health [1] - There has been a significant increase in merger and acquisition activities by multinational companies in China over the past six months, driven by two main strategies: "going global" and "getting closer to consumers" [1] - The "going global" strategy involves acquiring leading Chinese technology companies in sectors such as electric vehicles, medical technology, biotechnology, water technology, advanced materials, and robotics to leverage global potential and excess capacity [1] Group 2: Investment Plans - The majority of multinational companies plan to maintain or increase their investments in China by 2025, utilizing methods such as greenfield investments, mergers, acquisitions, or joint ventures [2] - The aim of these investments is to enhance competitiveness, increase production capacity, and improve local research and development capabilities in the Chinese market [2]

Core Insights - The report by KPMG highlights the resilience and vitality of the Chinese economy amidst external uncertainties, with 88% of surveyed CEOs expressing confidence in China's economic outlook for the next three years, a significant increase of 17 percentage points from the previous year [2][8] - The shift from incremental competition to stock competition in the Chinese market is prompting traditional industries to undergo transformation, focusing on innovation and digital transformation as key strategies for sustainable growth [3][4] Economic Outlook - Chinese CEOs are optimistic about short-term economic growth, driven by diversified foreign trade and the competitiveness of high-tech products, alongside domestic consumption and industrial upgrades [2] - The long-term outlook remains positive, with a new normal of moderate global economic growth, yet the fundamental trends supporting China's economy are unchanged [2] Strategic Initiatives - Companies are prioritizing three main strategies: optimizing globalization, accelerating digital transformation, and enhancing ESG (Environmental, Social, and Governance) initiatives [4][6] - The focus on R&D and innovation is paramount, with 52% of CEOs indicating it as a key operational focus for the coming year to break free from intense competition [3] M&A Activity - There has been a notable increase in M&A activities by multinational companies in China, driven by strategies to acquire leading Chinese tech firms and to achieve vertical integration by acquiring local distributors and manufacturers [10] - Over half of the surveyed multinational companies maintain a positive outlook on China's economic growth for 2025, with plans to sustain or increase investments in the region [8][10] Digital Transformation - Digital transformation and the application of artificial intelligence are seen as critical pathways for enhancing operational efficiency, with over 90% of companies planning to increase digital investments [10] - AI is recognized as a valuable tool for supporting ESG transitions, with companies embracing AI technology to lead in sustainable development [6]