Core Insights - The eighth China International Import Expo concluded with an intended transaction amount of $83.49 billion, marking a 4.4% increase from the previous year and setting a historical record [1] - A total of 4,108 companies from 138 countries and regions participated, including 290 Fortune Global 500 and industry-leading enterprises, showcasing China's strong market appeal [1] - The event highlighted a significant trend where multinational companies are increasingly focusing on deep localization centered around "China Original," rather than merely viewing China as a sales market or manufacturing base [1][2] Group 1: Foreign Enterprises' Localization Strategies - Many foreign companies have adjusted their organizational structures to enhance decision-making power in China and invest more in local supply chains and innovation centers [2] - In the automotive sector, overseas companies are adopting strategies focused on "deepening in China, serving China," leveraging China's advantages in the new energy vehicle industry [2] - The pharmaceutical industry is also witnessing this trend, with global pharmaceutical giants establishing strategic R&D centers in China and collaborating with local firms [2] Group 2: Market Environment Changes - The transformation in foreign enterprises' strategies is driven by significant changes in the Chinese market environment, including continuous upgrades from years of reform and opening up [3] - Emerging industries such as new energy vehicles, energy storage, wind power, photovoltaic, and digital technology are gaining prominence, providing a robust foundation for innovation [3] - Schneider Electric serves as a prime example of a multinational company enhancing its capabilities in China, having established itself as a key player in the market [3] Group 3: Schneider Electric's "China Center" Strategy - Schneider Electric has built a "China Center" strategy that integrates R&D, production, and talent development, allowing for agile responses to local market demands [4][5] - The company has established five R&D centers in China, employing over 2,200 engineers and holding more than 3,000 patents, with R&D investment growing at a compound annual growth rate of over 18% since 2019 [4] - Schneider Electric's production and supply chain systems are designed to quickly adapt to new product developments, ensuring efficient market responsiveness [5] Group 4: Global Impact and Talent Development - Schneider Electric is leveraging its capabilities developed in China to support Chinese companies in global markets, facilitating projects along the Belt and Road Initiative [9] - The company emphasizes the importance of local talent, with a significant number of core decision-makers in China being local professionals, marking a shift from global talent influx to Chinese talent taking on global roles [9][10] - The company's innovations, such as environmentally friendly switchgear developed in China, are being exported globally, exemplifying the "China wisdom" benefiting the world [8][10]

Core Insights - Schneider Electric views the China International Import Expo (CIIE) as a vital platform for showcasing high-level openness and quality development in China, emphasizing its commitment to innovation and collaboration in the Chinese market [2][3]. Group 1: Commitment to China - Schneider Electric has participated in the CIIE for eight consecutive years, showcasing innovative products and technologies, with an increasing proportion of original Chinese innovations [2][6]. - The company aims to deepen its investment in China, positioning it as a key market and innovation hub, with a compound annual growth rate of over 18% in R&D investment since 2019 [6][7]. - Schneider Electric's "China Center" strategy has made China its second-largest market globally, with significant contributions to its supply chain and R&D capabilities [6][7]. Group 2: Technological Integration - The integration of AI and energy technologies at Schneider Electric's Shanghai Putuo factory has led to a remarkable 82% increase in per capita productivity, demonstrating the transformative power of digital technologies in traditional manufacturing [3][4]. - The factory has adopted advanced digital technologies such as AI, 5G, and AR, enhancing processes like prototype design and flexible production [3][4]. - The application of AI has not only improved efficiency but also empowered workers, reducing fault repair times by 30% and increasing production speed by 65% [3][4]. Group 3: Ecosystem Development - Schneider Electric is building digital, sustainable, and global ecosystems in China to enhance innovation capabilities among SMEs and strengthen the overall competitiveness of the ecosystem [7][8]. - The "Winning Together" program has attracted over 1,250 SMEs, resulting in more than 40 joint innovation outcomes, serving as an AI-enabled innovation incubator [7]. - The company has successfully achieved 53% of its goal to help 270 Chinese suppliers reduce carbon emissions by 50% by the end of 2025 [7]. Group 4: Strategic Location - Shanghai is identified as a critical area for Schneider Electric's "China Center" strategy, benefiting from its unique innovation ecosystem and talent pool [8]. - The city serves as the headquarters for Schneider Electric in China and is pivotal for its ongoing investment and innovation efforts [8].

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 Viewpoint - Schneider Electric remains optimistic about the Chinese market, emphasizing its "China-centric" strategy and commitment to deepening its presence in the region [1][2]. Group 1: Market Position and Strategy - China has become Schneider Electric's second-largest global market and a key supply chain and R&D base [1]. - The company has established five R&D centers and AI innovation labs in China, contributing to global innovation and product development [1]. - Schneider Electric has been a participant and beneficiary of China's high-level opening since entering the market in 1987, demonstrating a strong commitment to the region [1]. Group 2: Sustainability and Green Development - Schneider Electric operates 22 "zero-carbon factories," 15 national-level "green factories," and two world-class "lighthouse factories" in China [2]. - The company initiated a "zero-carbon plan" for suppliers in 2021, aiming for the top 1,000 suppliers to achieve a 50% reduction in carbon emissions by 2025 [2]. - Overall energy consumption in Schneider Electric's supply chain in China has decreased by 19.4% compared to 2019, with production efficiency improving by nearly 10% annually [2]. Group 3: AI and Technological Integration - China is recognized as a global hub for AI industry development, and Schneider Electric extensively applies AI technology in its operations [2]. - Factories in Shanghai and Wuxi have significantly improved production efficiency and reduced energy consumption and carbon emissions through AI deployment, earning the designation of world-class "lighthouse factories" [2]. - The company combines advanced AI technology with industry experience to empower key sectors such as building construction, industrial manufacturing, infrastructure, and data centers, facilitating the transformation and upgrading of Chinese enterprises [2].

Core Viewpoint - China is increasingly becoming a research and development (R&D) hub for multinational companies, reflecting a shift from being merely a manufacturing base to a center for innovation and R&D investment [1] Group 1: Foreign Investment in R&D - From January to August 2025, 42,435 new foreign-invested enterprises were established in China, marking a 14.8% year-on-year increase, indicating sustained enthusiasm for foreign investment and an optimized investment structure [2] - Since 2013, R&D expenditure of foreign-funded industrial enterprises in China has increased by over 86.5%, with Shanghai surpassing 600 foreign R&D centers and Beijing's number doubling compared to the previous year [2] - Henkel has made significant investments in R&D projects in China, including the opening of its largest Asian R&D center in January 2024 and a new innovation experience center in September 2024 with a total investment of approximately 500 million yuan [2] Group 2: Pharmaceutical Sector Investments - AstraZeneca announced a $2.5 billion investment to establish a global strategic R&D center in Beijing, making it one of two such centers in China, with plans to launch 20 global innovative drugs by 2030 [3] - Schneider Electric has established multiple R&D centers in China, with an annual compound growth rate of over 18% in R&D investment since 2019, emphasizing the importance of local innovation [3] Group 3: Optimized Innovation Ecosystem - The increasing enthusiasm for foreign R&D investment in China is attributed to the country's large market size, favorable policy environment, and robust innovation ecosystem [4] - China has created a unique innovation advantage with a demand-driven, industry-supported, and talent-driven ecosystem, aligning well with the technological expertise of companies like Schneider Electric [4] Group 4: Global Business Impact - Bayer's new innovation cooperation center in Shanghai reflects a deepening R&D presence in China, supported by a stable policy environment that encourages innovation in the pharmaceutical and health sectors [5] - The rapid development of new technologies such as artificial intelligence and green energy in China presents significant market opportunities for multinational companies [6] - Cross-border innovations developed in China are increasingly serving global markets, with Bayer's innovative products from China accounting for 15% of its global innovation output as of 2023 [7] Group 5: Local Market Adaptation - Companies are recognizing the need to adapt to the unique characteristics of the Chinese market to maintain competitiveness, with local R&D enhancing supply chain flexibility and accelerating innovation [7][8] - Schneider Electric's environmentally friendly products developed in China are being promoted globally, showcasing the potential for "China's creation" to benefit worldwide markets [8]

Core Viewpoint - A significant increase in foreign investment in research and development (R&D) in China reflects multinational companies' commitment to enhancing local innovation capabilities, aligning with China's economic transformation from a manufacturing base to a research hub [1][4]. Group 1: Foreign Investment Trends - From January to August 2025, 42,435 new foreign-invested enterprises were established in China, marking a 14.8% year-on-year increase, indicating sustained enthusiasm for foreign investment and an optimized investment structure [2]. - Over the past decade, R&D expenditure of foreign-funded industrial enterprises in China has increased by over 86.5% [2]. - Shanghai has surpassed 600 foreign R&D centers, while Beijing's number has doubled compared to the previous year [2]. Group 2: Sector-Specific Developments - In the pharmaceutical sector, AstraZeneca announced a $2.5 billion investment to establish a global strategic R&D center in Beijing, making it one of two such centers in China [3]. - Schneider Electric has established multiple R&D centers in China, with an annual compound growth rate of over 18% in R&D investment since 2019, and has built five major R&D centers and AI innovation labs [3]. Group 3: Innovation Ecosystem - China's market size, policy environment, and innovation ecosystem are increasingly attractive to foreign enterprises, fostering a conducive environment for R&D [4]. - The Chinese market is characterized by strong growth potential and a welcoming attitude towards innovation, which is crucial for the rapid commercialization of new technologies and products [4]. Group 4: Global Impact of Local Innovations - Bayer's investment in a health consumer innovation center in Shanghai reflects confidence in China's stable policy environment for R&D, enhancing collaboration with local research institutions [5]. - Cross-national companies are leveraging innovations developed in China to serve global markets, with Bayer's innovative products from China accounting for 15% of its global innovation output as of 2023 [7]. Group 5: Technological Advancements - The rapid development of new technologies such as artificial intelligence and green energy presents significant market opportunities for multinational companies, positioning China as a key player in these fields [6]. - AstraZeneca is utilizing AI technology in China to accelerate scientific discoveries, exemplifying the integration of advanced technologies in local R&D efforts [6]. Group 6: Strategic Responses to Market Needs - Companies are increasingly focusing on local market characteristics to enhance competitiveness, with Henkel emphasizing the importance of R&D in China to respond quickly to market demands [7]. - Schneider Electric's innovations, such as environmentally friendly switchgear, developed in China, are being promoted globally, showcasing the international relevance of local R&D efforts [8].

Core Insights - Multinational companies are increasingly focusing on adapting their growth strategies to the unique conditions of the Chinese market while promoting sustainable development [1][2] - Schneider Electric emphasizes "triple innovation" through technology, ecology, and management to address industrial transformation and green transition challenges [2][4] Group 1: Technology Innovation - Schneider Electric is enhancing its technological advantages in digitalization, automation, and electrification, with a strong focus on AI research and development [2][4] - The company has established five R&D centers in China and has seen a compound annual growth rate of over 18% in R&D investment since 2019 [4][9] - AI and other advanced technologies have been integrated into their operations, exemplified by the transformation of traditional factories into "lighthouse factories" [10][11] Group 2: Ecological Innovation - Schneider Electric is building a digital and sustainable ecosystem through initiatives like the "Winning Together Program," which has attracted over 1,250 SMEs to enhance their innovation capabilities [7][9] - The company promotes a zero-carbon supply chain through its supplier initiatives and actively participates in industry-education integration to cultivate innovative talent [7][8] Group 3: Management Innovation - Management is considered a core competency, with Schneider Electric maintaining a "China Center" strategy that integrates sustainable development into its business operations [8][9] - The company focuses on empowering employees and enhancing their digital skills, aiming for over 90% of employees to become "digital citizens" by the end of 2025 [11][12] Group 4: Market Position and Future Outlook - China has become Schneider Electric's second-largest market and a key supply chain base, with the company planning to leverage opportunities in high-end, intelligent, and green development [2][12] - The company aims to contribute to global sustainable development by sharing its innovations and practices developed in China with other markets [12][13] - Schneider Electric's long-term strategy includes responding to local demands through increased R&D investment and agile mechanisms [15]