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From left to right:\u00a0Janice Hu, China country head, UBS AG, and chairperson of UBS Securities; Junjie Watkins, equity partner, Pictet Group, and CEO, Asia ex-Japan, Pictet Asset Management;\u00a0Rogier Janssens, president of Merck China;\u00a0Zhang Yifan, managing director of Lundbeck China.\u00a0 <\/p>\n
Editor\u2019s Note: As China launches its 15th Five-Year Plan (2026-30), policymakers are strengthening coordination between the \u201cExport to China\u201d and \u201cShopping in China\u201d campaigns. The effort signals a clear commitment to expanding imports while promoting high-quality consumption. To explore what this means for global business, we invited executives from multinational corporations to share their perspectives on the opportunities in China\u2019s vast market, the role of their China operations in global strategy, and their outlook for the years ahead.<\/em><\/p>\n Q1 China\u2019s GDP grew 5 percent in 2025, reaching 140.19 trillion yuan ($20.29 trillion). For 2026, the government targets growth of between 4.5 percent and 5 percent, with a planned deficit ratio of around 4 percent. How do you assess the credibility and policies backing this target? Amid moderating global demand, what does China\u2019s relative growth certainty mean for your company\u2019s global capital allocation, earnings outlook and investor expectations? Does the combination of proactive fiscal policies and accommodative monetary measures reinforce your confidence in sustaining or expanding operations in China?<\/p>\n HU: China\u2019s growth target of 4.5 percent to 5 percent reflects a pragmatic balance between stabilizing economic momentum and allowing space for structural reforms and economic rebalancing. The decision to set the fiscal deficit ratio at around 4 percent also sends a clear signal of a proactive policy stance, given that China\u2019s on-budget deficit has historically been around 3 percent or lower. Over the past three decades, UBS has witnessed and supported many important stages of China\u2019s economic transformation as one of the earliest international financial institutions operating in the country. Along the way, we\u2019ve grown with China\u2019s capital market and have built one of the most established multi-entity platforms among foreign peers with multiple licenses.<\/p>\n WATKINS: China has set its economic growth target at between 4.5 percent and 5 percent for this year, marking the first time in seven years that a range has been adopted rather than a fixed figure. This shift reflects a more flexible policy approach, enabling adjustments amid a transition toward higher-quality, sustainable growth. Amid ongoing global geopolitical tensions, China offers a degree of certainty in an otherwise uncertain environment. This is a distinctive advantage for the Chinese market. Relative certainty is further supported by improving earnings revisions compared with other emerging markets, attractive valuations, and structurally enhanced market liquidity. With a heritage spanning more than 220 years, Pictet is guided by a forward-looking vision. Our Ambition 2030 sets out our strategic priorities and expectations. China\u2019s vision resonates with Pictet\u2019s own growth trajectory.<\/p>\n JANSSENS: China\u2019s 2026 growth target of 4.5-5 percent reflects a pragmatic commitment to quality-driven development that aligns perfectly with Merck\u2019s strategic priorities across healthcare, life science and electronics. As a German company with over 355 years of history, we take a long-term view of market development. The proactive fiscal stance \u2014 particularly investments in healthcare infrastructure, biomanufacturing capabilities and semiconductor industry development \u2014 provides the policy certainty we need for long-term capital allocation decisions. In an era of global volatility, China\u2019s macroeconomic stability functions as a strategic anchor in our worldwide portfolio. Over the past decade, we\u2019ve invested nearly 7 billion yuan in China, and the current policy framework validates our continued commitment.<\/p>\n ZHANG: The Chinese economy has proved resilient against global headwinds over the past years. I am confident the momentum will continue into 2026, underpinned by the government\u2019s proactive, pragmatic, forward-looking policies and actions. Notably, fostering new growth drivers remains a top national priority. Biomedicine, a sector central to Lundbeck\u2019s operations, is positioned as one of the emerging pillar industries in the recent Government Work Report. The strategic focus is expected to inject new impetus into the industry and present growth potential for global pharmaceutical companies including Lundbeck.<\/p>\n Q2 In 2025, China\u2019s exports rose 6.1 percent, newly established foreign-invested enterprises increased by 19.1 percent, and research and development intensity reached 2.8 percent of GDP. Against the backdrop of global supply chain reconfiguration, is China\u2019s role in your global strategy expanding? How do you evaluate China\u2019s integrated advantages \u2014 manufacturing depth, innovation capacity, infrastructure and market scale \u2014 in supporting your production networks and supply resilience? Does China function primarily as a market, a production base, an innovation hub, or increasingly all three within your corporate architecture?<\/p>\n HU: China is a key market for UBS and we continue to invest strategically. We are encouraged to see that Chinese companies are increasingly at the forefront of innovation and industry transformation, bringing new technologies, products and investment opportunities to international markets. With more than 36 years of local presence and a global network, we see a significant opportunity to support the growth of Chinese corporates and innovation with our unique strengths in connectivity \u2014 bringing China to the world and the world to China. As the first institution to qualify as a qualified foreign institutional investor, we have long played a pioneering role in bringing international capital to the China market. We also support Chinese companies in accessing global investors and capital markets.<\/p>\n WATKINS: We have been investing in China for global investors for over two decades. Our long-term perspective enables us to identify opportunities arising from the country\u2019s ongoing structural transformation. Last year, Chinese equities delivered robust performance, driven by breakthroughs in AI that signaled a new era of technological advancement. With returns that are relatively uncorrelated with other global markets, and sustained resilience amid market volatility year to date, international investors have shown increased interest in Chinese equities. Increased market participation and stronger trading activity are expected to provide further support. As a long-term investor, we focus on three key mega-trends: environmental, technological and societal change.<\/p>\n JANSSENS: China has fundamentally transformed within Merck\u2019s global architecture from primarily a market into simultaneously functioning as a critical production base, innovation hub and strategic collaborator. As a German science and technology company headquartered in Darmstadt, we value long-term partnerships and deep local integration. The 19.1 percent rise in newly established foreign enterprises signals an investment climate rewarding long-term commitment, something we\u2019ve experienced through expanded partnerships across this country. With nearly 4,500 employees across 21 legal entities, China\u2019s role for Merck isn\u2019t simply expanding: it\u2019s transforming from localization to co-innovation across technology frontiers.<\/p>\n ZHANG: As Lundbeck\u2019s second-largest market globally, China is not only a commercial hub, but also a strategic pillar within our global footprint in neuroscience, playing an increasingly multidimensional role across market growth and development participation. As a focused innovator in neuroscience, addressing unmet needs remains at our core. We are encouraged by China\u2019s continued progress in advancing innovation and are committed to deepening collaboration with local partners, fostering biotech partnerships, leveraging AI technologies and further improving clinical development efficiency.<\/p>\n Q3 China is advancing the unified national market, with an urbanization rate of 67.9 percent and total retail sales surpassing 50 trillion yuan. As domestic demand expands, what structural opportunities does this vast, increasingly integrated market present for your portfolio, distribution channels and localization strategy? Does deeper market unification reduce operational fragmentation and compliance costs? How do you position your brand and product mix to capture demand from both top-tier cities and fast-growing lower-tier markets?<\/p>\n HU: A \u201cunified national market\u201d helps reduce market fragmentation, improve resource allocation and rectify involution-style competition. Over time, this should boost corporate vitality, support the emergence of more national champions with global competitiveness, and create stronger foundations for economic growth and capital market development. This is key for global players to increase their interest in investing in China. We are already seeing signs of this momentum. International investors\u2019 interest in China rebounded in 2025, as Chinese assets gradually evolved from a \u201cportfolio option\u201d into a \u201cstrategic must\u201d. As a pioneer in northbound trading of the Stock Connect, UBS achieved record China trading volumes in 2025, reflecting renewed global engagement with the market.<\/p>\n WATKINS: China\u2019s unified national market is designed to establish a standardized and efficient domestic system, enhancing economic efficiency and enabling long-term investors to access the country\u2019s growth potential as it advances toward high-quality, innovation-driven development. On the consumption front, recent policy initiatives have prioritized domestic demand, introducing reforms in the pension system, healthcare, minimum wages and social security. If implemented effectively, these measures are expected to support consumer spending and encourage the expansion of service-oriented consumption. We see attractive opportunities in urbanization-driven infrastructure and in the evolution of consumption patterns, with consumers increasingly seeking healthier lifestyles and placing greater value on experience-led and emotion-driven purchases.<\/p>\n JANSSENS: The unified national market initiative represents a transformational opportunity for Merck to scale innovation more efficiently across all business sectors. We see three major opportunities. First, rising urbanization and healthcare spending in lower-tier cities create demand for chronic disease therapies and fertility treatments where Merck has leadership, while expanding laboratory infrastructure requiring our life science reagents. Second, unified technical standards and procurement systems allow us to optimize our commercial footprint in both B2B and B2C sectors. Third, expanding consumer demand for premium smartphones, tablets and wearable devices drives demand for our optronics materials.<\/p>\n ZHANG: China\u2019s advancing unified national market and urbanization expand the patient base in brain diseases and improve nationwide access. Greater integration enhances distribution efficiency, regulatory consistency and supply coordination, reducing fragmentation and compliance complexity. For mature brands, Lundbeck collaborates with local partners to expand into lower-tier markets while leveraging leading e-commerce platforms to strengthen omnichannel access to make our treatments accessible to more patients. At Lundbeck, we are dedicated to making a meaningful difference \u2014 one life at a time. We filed for marketing authorization of a special preventive therapy in November. Inclusion on the national reimbursement drug list after approval would be critical to enable nationwide access, improve efficiency and benefit patients across city tiers.<\/p>\n Q4 China\u2019s trade-in program generated over 2.6 trillion yuan in sales in 2025, alongside the \u201cShopping in China\u201d and \u201cExport to China\u201d initiatives. China\u2019s exports grew 6.1 percent year-on-year. How is your company aligning its China strategy to capture both domestic consumption upgrades and export-oriented opportunities? Do you see China increasingly as a global production and innovation base serving international markets? How are you balancing local demand expansion with China\u2019s role in your global export ecosystem?<\/p>\n HU: We are encouraged by the Government Work Report\u2019s commitment to further expanding high-standard opening-up, deepening reform of the institutional framework for promoting foreign investment and ensuring national treatment for foreign-funded enterprises. This not only sends a positive signal of continued efforts to improve the business environment, but also helps further reduce institutional transaction costs and strengthen foreign investors\u2019 confidence and stability in long-term participation in China\u2019s market. UBS has long supported and benefited from the country\u2019s continuous opening-up policies.<\/p>\n WATKINS: We have long highlighted that China is indispensable to the global energy transition. As the world\u2019s largest producer of renewable energy, particularly in solar and wind, China has demonstrated a strong commitment to environmental policy and innovation. As AI applications expand, demand for energy-efficient solutions is rising, especially in data centers, which are projected to account for a significant share of future power consumption. This dynamic creates compelling opportunities in areas such as semiconductors, green buildings, efficient manufacturing and enabling infrastructure, including power grids and green transportation. With over 30 years of experience in global thematic equity investing, we seek to capture long-term value in China\u2019s clean energy transition and broader environmental themes for investors.<\/p>\n JANSSENS: Merck\u2019s China strategy embodies a dual mandate of serving domestic consumption and industrial upgrades while leveraging China as an innovation and manufacturing platform for global markets. As a German company with operations in 65 countries, we view China not just as a local market, but as an integral part of our global value creation network. The consumption momentum aligns with multiple growth drivers: healthcare consumerization through high-quality therapies, laboratory modernization as Chinese biotech companies scale up requiring advanced reagents, and consumer electronics evolution demanding cutting-edge optronics materials for OLED screens. The \u201cExport to China\u201d concept resonates uniquely in technology sectors: it\u2019s about bidirectional innovation flow, inviting global breakthroughs into China faster while exporting China-developed solutions worldwide.<\/p>\n ZHANG: China has advanced consumption upgrades and strengthened its role as a major demand engine. In healthcare, patients are increasingly seeking high-quality treatment solutions. Lundbeck remains focused on brain health across the life cycle, accelerating the development of innovative therapies while expanding access to our established portfolio to meet the growing demand for high-quality healthcare solutions. Rising public health awareness and policy support create sustained demand for advanced neuroscience treatments. Our preventive therapy for chronic migraine and investigational treatment for developmental and epileptic encephalopathies illustrate how we respond to unmet needs while reinforcing our presence in the world\u2019s second-largest pharmaceutical market.<\/p>\n Q5 China last year reduced energy intensity by 5.1 percent, raised the nonfossil energy share to 21.7 percent, and expanded new-type energy storage capacity beyond 130 gigawatts. Artificial intelligence and advanced technologies remain at the forefront globally. Where do you see the strongest partnership potential in China\u2019s green transition and AI-driven industrial upgrading? Are you expanding investment in renewables, digitalization, smart manufacturing, or carbon management solutions? How central is China to your global sustainability roadmap and next-generation technology deployment?<\/p>\n HU: From the rapid evolution of AI to the global rise of sectors such as electric vehicles and renewable energy, Chinese companies are increasingly demonstrating strong technological leadership. Scaling these innovations requires efficient capital allocation in both the local and global financial markets, which creates significant opportunities for global financial institutions like UBS. AI and innovation also play a key role in delivering UBS\u2019s own growth strategy. Globally, UBS has more than 380 live AI-use cases, and employees are equipped with AI productivity tools. Another key contributor is UBS Business Solutions (China), one of our three largest global service centers. It develops advanced AI-enabled technology solutions for UBS globally, including quantitative modeling, algorithmic trading, big data analytics, and cloud engineering. It also collaborates with leading Chinese universities to help cultivate local fintech and AI talent.<\/p>\n JANSSENS: China\u2019s green transition is accelerating, and we see some of the strongest partnership potential where decarbonization and industrial competitiveness move together, especially in renewable electricity adoption, smart manufacturing and sustainable innovation across value chains. At Merck, our sustainability strategy is global, and China is an integral part of how we deliver it locally. As a German company with ambitious science-based climate targets, we are committed to achieving climate neutrality by 2040. In China, we are advancing a pragmatic mix of actions: scaling renewable power and on-site efficiency, accelerating digitalization and smart manufacturing, and expanding sustainable product innovation that helps customers reduce carbon footprint without compromising performance. Across our China footprint, we have invested in green power procurement; through partnerships with Envision and China Resources, 80 percent of our purchased electricity in China now comes from renewable sources.<\/p>\n ZHANG: At Lundbeck, corporate value lies in both business performance and sustainable impact. China is an indispensable part of our global sustainability roadmap. Beyond operational decarbonization and efficiency improvements, we contribute through community-based initiatives such as the \u201cMental Health Oasis\u201d program in Linquan, Anhui province, integrating mental health support for children and adolescents into rural vitalization efforts. As China advances its green transition, we see partnership potential in energy efficiency, low-carbon operations, and sustainable supply chain practices, aligning local implementation with our global sustainability targets and governance framework. In terms of technology, AI is becoming central to next-generation drug discovery, as well as patient education and disease management. Lundbeck recently appointed a chief AI officer, reflecting the critical role AI will play in transforming how the company operates, innovates and scales its impact for patients.<\/p>\n Tanks to chinadaily.com.cn<\/p>\n Please visit:<\/p>\n