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 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 - 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]