Brazil-based pulp producer Suzano is confident about the growth prospects of the Chinese market and has introduced a trial trade of its products in renminbi. The company sees a good correlation between its business and China's GDP growth, with its pulp business growing 6.6 percent last year in the Chinese market. China represents roughly 40 percent of Suzano's total exports, and the company is exporting to over 100 different countries. Suzano has gained some orders at the beginning of this year and expects the order book to keep growing. The company celebrated its 100th anniversary with Chinese stakeholders in Shanghai and reinforced its commitment to further expanding in the Chinese market. Suzano sees potential for growth in the tissue business in China, as per capita consumption is still below certain Western regions. In March, Suzano signed two strategic partnership frameworks in Shanghai to strengthen innovation and sustainability practices. The company believes its innovative efforts align with China's focus on developing new quality productive forces. In the long run, Suzano expects to thrive in China as the country undergoes a new round of technology revolution and industrial transformation. [d43a4577]
China's pursuit of high-quality development and its commitment to growing new quality productive forces will continue to unleash great potential for growth and business opportunities for multinational companies, according to speakers at the Boao Forum for Asia (BFA) Annual Conference 2024. China achieved 5.2 percent growth in 2023, contributing around one-third of global growth. The Chinese government has set an economic growth target of around 5 percent for 2024. In the first two months of 2024, China saw its imports and exports reach a historical high of 6.6 trillion yuan ($930 billion). Additionally, 7,160 new foreign-invested firms were set up in China during the same period, marking the highest increase in nearly five years [46634e8d].
China's high-quality development and economic growth have a positive spillover effect on other economies. For every one percentage point faster in China's growth, the level of GDP in other economies in the medium term raises by about 0.3 percent. However, falling property prices in China pose a downside risk. To manage the leveraging of the sector, the Chinese government has implemented pro-growth measures, including cutting down the down payment ratio and easing rules on old policies that restricted home purchase transactions during periods of soaring home prices [46634e8d].
Despite these challenges, China still has significant potential for consumption growth. The government has recently announced a plan to promote large-scale equipment upgrades and trade-in of consumer goods to boost domestic demand and support continuous economic growth in 2024. China's economic transformation and upgrading present numerous business scenarios and opportunities for multinational companies to grow together with China [46634e8d].
Japanese building materials and housing products provider Lixil Group plans to make China the center of its innovative initiatives. Bijoy Mohan, executive officer of Lixil International, expects China to remain one of the company's top three markets in the next 10 years and become its pioneer for innovation. The company is inspired by China's focus on driving the real estate market and investing in urban development, which has allowed Lixil to establish manufacturing, distribution structures, and new technologies. Lixil operates five factories in China and produces around 8.5 million pieces of products annually in the country [c5187627].