Editor's Note: With strong policy support, unremitting technological innovation and industrial upgrading, China's economic recovery continued to gather steam in the third quarter, with its GDP expanding by 4.9 percent from a year earlier, leading to a 5.2-percent year-on-year growth in the first nine months. China Daily presents a series of Q&As with top multinational corporation executives, discussing their perspectives on the Chinese economy and how they will position future business in China.

Q1 Given the complex current global economic and geopolitical situations, how do you position the Chinese market in your overall global business radar? What's your outlook for China's economy and your company's operations in the country for this year and next?

CHEN: China is a key market for Louis Dreyfus Company, for both our core merchandising activity, which has made our company a global force, and our strategy in moving further downstream in the value chain, closer to end consumers, and diversifying into more value-added product lines.

The Chinese government has long been committed to promoting economic structural transformation and innovation-driven development, both of which are conducive to cultivating a better investment environment and new potential business opportunities.

In this context, LDC is committed to further investment and growth in China through expanded cooperation with Chinese partners to address the growing and evolving domestic consumer demand.

ZHU: The China market holds a prominent position within our global strategy and stands as one of our largest markets. Over the past few years, its pet market has experienced rapid growth, becoming a flourishing consumption hotspot within the country's economy. With economic development and evolving consumer attitudes toward pets, we've seen a growing number of pet owners who are keen on providing their pets with a high-quality lifestyle, as pets are playing an increasingly important role in people's lives. We believe that Chinese consumers still possess a significant demand for high-quality pet food products. Therefore, we plan to continue investing and expanding in the Chinese market. In 2024, we will actively engage in the Chinese market and meet the needs of Chinese pet owners.

VAN KARNEBEEK: The Chinese market is one of the most important markets for FrieslandCampina. In China, three of our business segments are very active, namely specialized nutrition for infant formula, professional business for food services and ingredients for food industry clients. In the past three years, we achieved double-digit growth for our business in China and this year, despite challenging market situations, we foresee double-digit growth for the whole year. We are quite optimistic about the outlook for China's economy and our business in China. I believe our future is closely linked with China.

COURTNEY: Our position in the Chinese market is of utmost importance to our global business strategy. China has been the largest market in Silver Fern Farms' global business for four consecutive years, accounting for 35 percent of our total exports in 2022. As our largest single market, we remain confident in its long-term growth potential.

Despite the current complex economic circumstances, China's economy plays a pivotal role in global economic recovery. Chinese consumers are increasingly health-conscious and seeking high-quality nutrients. Our commitment to sharing New Zealand's natural premium beef, lamb and venison with Chinese consumers never changes. Catering to their discerning tastes and desire for a healthy and delicious diet, we will focus our efforts on both e-commerce and retail channels, as well as the high-end food service niches in the hotel, restaurant and cafe segment. In the coming years, we are optimistic about our operations in China. We believe by aligning with the growing demand for quality food products and leveraging the strength of the Chinese market, we can continue to thrive.

Q2 Are you confident about the Chinese economy over the long run? How would you rate your confidence in the Chinese economy?

CHEN: Over the last five decades, China has experienced significant economic growth, with recent initiatives aimed at fostering a thriving business ecosystem. Furthermore, China has implemented a multitude of policies and measures designed to entice foreign enterprises to invest in the country. It has also provided a transparent list of potential investment opportunities for foreign companies, significantly reducing uncertainties and risks.

Thus, we are confident in China's long-term economic development and importance as a key market for LDC. For LDC, it is not a matter of rating, but rather the potential we see to grow with China — to contribute to the sustainable development of food and agricultural production, and meet the evolving needs of the country's population.

ZHU: I have great confidence in the Chinese economy. China has maintained rapid economic growth over the past decades and has become one of the world's largest economies. The government's commitment to economic reform, innovation and infrastructure development has achieved remarkable success. Focusing on the pet food market, pet food accounts for more than half of the overall pet consumption market, around 50.7 percent. This reflects the rise of the new economy and new consumer trends.

A significant characteristic of the Chinese pet market is the substantial proportion of young pet owners. They are independent, well-educated, possess a strong willingness to spend, and pay close attention to what they are feeding their pets. They are willing to pay more for high-quality pet food to provide better nutrition. This has greatly contributed to the development of the Chinese pet market.

Furthermore, the Chinese market is increasingly emphasizing pet care and pet health awareness, which will continue to foster positive development of the pet food market. Looking ahead, we anticipate more business opportunities in the pet industry, and we believe the pet market will continue to grow.

VAN KARNEBEEK: I am a strong believer in China and I am quite confident in the Chinese economy in the long run. On a scale of 1 to 10, my confidence would be 10.According to the International Monetary Fund forecast, the world economy will grow 2.8 percent in 2023 and the projection for China is 5.2 percent. We have every reason to believe that the Chinese economy will continue to grow, with the driving forces including innovation, sustainable development, consumer demand, further opening-up and talent.

COURTNEY: I am confident that the Chinese economy will remain a critical part of the global economy. This confidence comes from the scale of China's market, increasing wealth per capita, robust supply chains, rapid digitalization and investment in new technology, which, when combined, mean a high-quality development path for its population to make China a vibrant and dynamic market.

Q3 China's economic policymakers have assured greater efforts to attract foreign capital, widen market access and ensure a level playing field for both domestic and foreign companies. In this context, what new policy measures do you expect from Chinese authorities in the near future?

CHEN: China's economic development faces a pivotal challenge in transitioning from traditional manufacturing to innovation-driven quality development. This transition requires additional investment in scientific and technological innovation to upgrade technical strength and overall business competitiveness, and ultimately drive green and low-carbon digital transformation.

LDC has actively responded to China's policies, most recently building its global R&D center in Shanghai, which serves as the focal point for LDC's product innovation and R&D activities in China.

We are committed to investing in innovative agriculture-related technologies, techniques and solutions, contributing to the industry's digital transformation, green energy adoption and more sustainable supply chains.

The recent new policies introduced by the Chinese government promise development across a series of areas — market access, tax incentives, intellectual property protection, financial support and simplified administrative procedures. These favorable conditions reduce the burdens and barriers that foreign enterprises face when entering the Chinese market and enhance business competitiveness, encouraging further technology- and innovation-driven investments and activities.

The implementation of these measures confirms our confidence to continue investing in and growing with China, playing an active role in the Chinese market, and pursuing initiatives that promote mutual prosperity for both LDC and the Chinese economy.

ZHU: From a pet food brand perspective, as the Chinese economy continues to develop, it brings challenges to the pet food industry. More and more brands are entering the Chinese market, providing consumers with a wider range of choices. To compete effectively in the market, brands need to remain agile, constantly innovate, adapt to market changes, and proactively respond to consumer demands. Furthermore, establishing a strong brand reputation and providing transparent product information are key factors in maintaining a competitive edge. We are looking forward to having more policies that will support the development of the pet food industry.

VAN KARNEBEEK: In the post-pandemic world, we are faced with the same challenges — boosting confidence and attaining economic recovery. China's GDP grew 5.5 percent year-on-year in the first half of 2023 and the Chinese economy has demonstrated strong resilience, enormous potential and great vitality. The State Council recently issued a document about opinions on further optimizing the foreign investment environment and intensifying efforts to attract foreign investment, which is exciting news for us. We will continue our investments in China to achieve business growth and long-term development.

COURTNEY: As an exporter from a small country, we are acutely aware that to operate successfully in the global trading environment and within any of the large economies of the world, we need certainty. Certainty comes from the consistent application of rules and policies that give us the confidence to invest in building a market through nurturing our customer relationships, building our brand and investing in our people to bring our business strategy to life. It is not for us to comment on specific policy changes in any of the markets we do business in, other than to say if policy changes are in line with an open trading system that allows us to conduct our business with confidence and certainty, then we welcome them.

Q4 As China continues to pursue high-quality development through a homegrown path to modernization, what is the vision for your company's business in the country over the long run? What business opportunities do you foresee emerging as part of the process of Chinese modernization?

CHEN: Witnessing China's high-quality development efforts, LDC is committed to growing alongside its partners in the country, and to meeting consumer needs through continuous innovation and an enhanced portfolio of quality products and services.

Chinese consumers expect a more diverse range of choices, with food safety and quality as their main concerns. Accordingly, we will focus more on developing nutritious products and ingredients through R&D and innovation.

After expanding our cooking oil range last year, we began distributing not-from-concentrate juices. Both product lines have gained traction among our customers and, looking ahead, we will extend our portfolio into instant coffees, plant-based ingredients and other product lines, continuing to serve customers with diversified and qualitative products.

ZHU: Our vision in the China market closely aligns with China's path to modernization. We aim to make greater contributions to China's pet food industry for positive, responsible and sustainable development.

We will continue focusing on the Chinese market and the needs of its pet owners with a consumer-centric approach by investing more resources in innovation and new product development, providing more and better pet food choices, and bringing peace of mind to pets and pet owners.

China's modernization path is driving significant changes in the pet economy. From our perspective, we see many opportunities with the market changes — growing demand for high-quality products and e-commerce opportunities using cross-border platforms and livestreaming channels. By adapting to these dynamics, we have more opportunities to expand our brand in the market.

VAN KARNEBEEK: Our future is closely linked with China and we are here for the long term. We believe that the Chinese economy will continue to grow, and so will our business in China. We have successful business operations in the bigger cities and are making every effort to penetrate lower-tier cities to ensure continuous business growth. As a dairy company with over 150 years of cooperative history, we have rich experience and expertise in nutrition derived from dairy. As the Chinese people attach more importance to health, I believe we have a role to play in providing better nutrition to meet their diversified demands.

COURTNEY: Our vision for the Chinese market will always be sharing the goodness of New Zealand farms through our market-led strategy. As China accelerates its modernization with a focus on high-quality development and the green transition, sustainability is a promising business opportunity. This aligns with Silver Fern Farms' goal to eliminate coal from our processing operations by 2030 and halve our emissions from coal in the next few years.

We will review our packaging and look at designing and launching environmentally friendly products to fulfill consumers' rising demand with our partners in China. Additionally, the fast-paced lifestyles and an insistent pursuit of healthy eating in China are driving demand for convenient yet quality dining options. There is potential in ready-to-cook dishes using our quality grass-fed red meats. We are working to innovate and diversify our product offerings, featuring premium grass-fed venison.

Q5 Could you share with us one or two of your successful business or personal stories in the process of growing with China?

CHEN: With decarbonization being a critical global goal, I would underline LDC's active efforts in leveraging green energy in China to reduce carbon emissions, supporting increasingly sustainable food and agricultural value chains. We have adopted the use of photovoltaic power in our industrial sites to reduce carbon emissions. In January 2023, our Dongguan, Guangdong province plant became the first factory to use 100 percent green power for production in all LDC global production sites. Most recently, we signed a green power agreement to cover 100 percent of energy needs at a food industry park, contributing to our commitment to reducing our Scope 1&2 emissions by 33.6 percent by 2030.

ZHU: Ziwi's growth in the Chinese market demonstrates how an overseas company is closely aligned with China's development. Since entering the Chinese market in 2016, Ziwi has achieved steady and rapid growth, becoming the leader in the Chinese wet pet food market in just five years. An achievement like this is unique to the Chinese market and would be hard to replicate in other markets.

With the significant development of the Chinese economy and the improvement of people's living standards, pet owners have become increasingly willing to invest more in their pets' health. As an ultra-premium pet food brand, the ingredients we use and our formula perfectly meet pets' needs with high-quality nutrition.

China's digital development has also created more opportunities, such as cross-border e-commerce, livestreaming channels and logistics services, enabling us to introduce products into the market more efficiently and deliver products to consumers quickly. China's modernization path provides Ziwi with these opportunities, helping us achieve rapid growth.

VAN KARNEBEEK: Twenty-five years ago, I spent two years working in China and have been to many big cities. It's nice to be back and see how much the country has grown and developed. I think there are three specific areas to highlight — first, the cities are much cleaner and easier to live in; second, how digital China has become. Today, China is leading in the world in digital tools to interact with consumers; and lastly, Chinese people take a deep interest in quality. These were true 25 years ago and are even truer today.

COURTNEY: The journey of expanding in the Chinese market involves continuously adjusting our market strategies to seek localization and adopting innovative technologies to connect with local consumers.

Recognizing the strong digital influence on Chinese consumers' purchasing habits, we've connected to them by launching various e-commerce sales. The Traceability Livestreaming, in partnership with three popular food and wine KOLs (key opinion leaders) who visited Silver Fern Farms' operations and spoke with the farmers, earned nearly 10 million views, reflecting the success of our engagement strategy.

Our success stems from a thorough understanding of the evolving Chinese consumers' tastes. As preferences become more discerning and shift to healthier lifestyles, we have seized the opportunity to promote our premium grass-fed red meat products. This success underscores our ability to deliver and meet the high standards of Chinese consumers, reinforcing our strategic position in the market.