Chinese market remains sweet spot in foreign firms' global financial performance

An exhibitor (L) introduces imported blueberries to a purchasing agent during a pre-exhibition supply and demand matchmaking meeting for the sixth China International Import Expo in Shenzhen, south China's Guangdong Province, Aug. 29, 2023. (Xinhua/Mao Siqian)

BEIJING, Sept. 5 (Xinhua) -- Despite a sluggish global economy, many multinational companies, especially those in the consumption sector, have found China a source of confidence for business growth, as their latest financial reports highlighted robust Chinese market performance.

Foreign catering firms earned big in China as the service retail market picks up recovery steam. U.S. coffee chain brand Starbucks' China's revenue grew 60 percent year on year when excluding the impact of foreign currency translation in the third quarter (Q3) of its 2023 fiscal year.

A total of 237 new outlets were opened during the period, more than the sum of the previous two quarters and setting a record high for Q3 performance.

Thanks to Chinese people's growing passion for outdoor activities and sports-based social networking, U.S.-based global sportswear brand Skechers saw Chinese market sales rise 19 percent year on year in Q2.

"We have long-term optimism on the Chinese market and stay committed to investing in China," said Willie Tan, who is in charge of Skechers' China, the Republic of Korea, and Southeast Asian markets. The company opened a live-streaming base in the southern Chinese city of Dongguan in July to utilize the increasingly popular sales approach.

Global cosmetics companies also reported strong recoveries in the Chinese market. China again rose to be the largest market in terms of net sales for the Japanese cosmetics brand Shiseido Group in Q2, while French counterpart L'Oreal saw its high-end products report double-digit sales growth in the Chinese mainland.

China has managed to keep foreign investment relatively stable in the first half of this year. The country saw a 35.7 percent year-on-year increase in the number of new foreign enterprises despite a slight dip in actually utilized foreign investment.

In a recent development of China's opening-up efforts, the country's State Council last month unveiled guidelines containing 24 specific measures to further optimize foreign investment environment and beef up foreign investment inflow.

These measures include expanding pilot areas to open wider in terms of services, encouraging foreign firms and their R&D centers to undertake major sci-tech projects, facilitating the travel of senior executives, technicians, and their families, and enhancing the expertise of personnel in local government offices handling foreign investment.

"We believe that 'investing in China is investing in the future.' A commitment to China, its people and its talents is a winning factor for every international company," L'Oreal Chairman Jean-Paul Agon told Xinhua in a recent interview.