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Editor's Note: This year marks a critical milestone as China concludes its 14th Five-Year Plan. To help in assessing the success of the process, we have asked multinational executives to share with our readers their insights about their business achievements in the past few years and further expectations in the years to come.
Q1 What's your view on this year's two sessions? Do you expect any specific policy measures for further deepening reforms and expanding high-standard opening-up? What more should China do to create a more enabling business environment for foreign investors?
MOREL: As China approaches the conclusion of its 14th Five-Year Plan, we hope that the two sessions will continue to prioritize policies that sustain economic growth and drive innovation, particularly in digital transformation and sustainable development. China's commitment to high-level opening-up has been promising, and we would welcome further steps to enhance the business environment. This could include measures such as enhanced regulatory transparency, streamlined processes for market access, and stronger intellectual property protections. Such initiatives would not only further bolster China's appeal as a destination for international investment, but also provide greater opportunities for companies like Lectra to expand, innovate and thrive within this dynamic market.
DING: As general manager of Veeva China, I very much look forward to the country further deepening reforms and expanding high-level opening-up of the Chinese economy. Especially in the healthcare and technology sectors, I expect the government to introduce more innovative support policies and strengthen intellectual property rights protection to create a fairer, more transparent and more predictable market environment for foreign companies. In addition, promoting the development of digital healthcare and smart healthcare will also bring new growth points for the pharmaceutical industry. Currently, the size of China's digital healthcare market has exceeded 100 billion yuan ($13.8 billion) and is maintaining a rapid growth trend. The pharmaceutical sector is a special industry related to people's health and safety. I hope the government can provide more policy support for the digital transformation and upgrading of the pharmaceutical industry, so that more patients can have access to safe, effective and affordable medicines faster by encouraging pharmaceutical companies to adopt digital technology to achieve compliant operations and efficient management in the process of drug development, production and marketing.
CUI: As China concludes its 14th Five-Year Plan, the high-quality development, innovation, and open economy will be reiterated during the two sessions. Recent initiatives including strengthening intellectual property protection for foreign enterprises and 2025 Action Plan for Stabilizing Foreign Investment were unveiled to further open up the economy and attract global capital. We're looking forward to further improvements in market access and regulatory transparency, further streamlining administrative procedures, ensuring policy consistency, and facilitating cross-border data flows, which will help strengthen investor confidence. China's ongoing commitment to openness and innovation presents new opportunities for multinational companies like Aveva to contribute to, and benefit from, its economic transformation.
TSAO: We look forward to the two sessions further advancing high-quality development and market-oriented reforms, creating a more transparent and fairer business environment for innovation. At Red Hat, we are committed to leveraging open-source technologies and services to collaborate with Chinese partners under open and mutually beneficial policies, helping enterprises build new productive forces and expand globally. Only through more open and fair business policies can we foster global technological innovation and international cooperation, ultimately creating more opportunities for all stakeholders.
Q2 "New quality productive forces" is widely seen as key to helping China achieve industrial upgrade and "high-quality development". How can your company help cultivate such forces in China?
MOREL: At Lectra, we are fully aligned with China's vision of upgrading industrial productivity through the development of "new quality productive forces". We contribute to it by providing advanced solutions that drive industrial transformation across key sectors such as fashion, automotives and furniture. Our offerings empower Chinese manufacturers to improve product quality, reduce material waste and enhance productivity in their production processes. By enabling greater efficiency and sustainability, we support the upgrade of industries to meet higher standards. In addition, we also collaborate with local partners and educational institutions to develop talent and foster innovation in these key sectors. Through these initiatives, Lectra is ultimately contributing to the long-term success of China's industrial upgrades and high-quality development goals.
DING: "New quality productive forces "is widely seen as key to helping China achieve industrial upgrades and high-quality development. Veeva introduces international advanced management concepts and digital technology tools to help pharmaceutical companies improve operational efficiency, product quality and market competitiveness. For example, in China, our China Commercial Cloud solution, Veeva China CRM Suite, is tailored for the Chinese market, helping many pharmaceutical companies digitally manage the entire process of marketing their drugs to market, enabling them to achieve operational compliance, reduce costs and increase efficiency in the commercialization process. Veeva contributes to China's pharmaceutical industry by providing more high-quality digital solutions in line with international standards through continuous technological innovation and promoting the overall digitalization and upgrading of China's pharmaceutical industry.
CUI: "New quality productive forces "is key to promoting the upgrading of China's industry and high-quality development. Collaborating with leading enterprises across various industries, like chemicals, power, and manufacturing, especially semiconductors, we use technologies like big data analysis and cloud computing to optimize production processes, improve product quality, and reduce energy consumption and costs. Additionally, training and technical support are leveraged to enhance enterprise competitiveness and contribute to the high-quality development of China's industry, while the offices in Beijing, Shanghai, and Guangzhou also serve as training centers where periodic training sessions are conducted for different products. Scientific and technological innovation and industrial transformation are essential for China to achieve its high-quality development goals.
TSAO: Red Hat has been committed to fostering new quality productive forces in China. On the technology front, with 20 years of deep-rooted experience in the Chinese mainland, we have provided enterprise-grade open-source technologies and services to thousands of businesses. Leveraging cutting-edge technologies such as cloud computing, containerization, edge computing and AI, we help enterprises unlock data value and enhance operational efficiency. At the same time, we actively promote technical exchange and collaboration, serving as a bridge for communication between China and the world. This enables Chinese enterprises to absorb global best practices, accelerate digital transformation, strengthen independent innovation, and drive industrial upgrading and high-quality development.
Q3 DeepSeek has been a buzzword and surprised the world starting this year. AI technology has been deeply integrated with various industries around the world. What opportunities do you foresee for your business from AI technology? What's your view on China's ability to sustain innovation in breakthrough technologies in the coming years?
MOREL: AI presents tremendous opportunities for business in the coming years. As an advocate and pioneer of Industry 4.0, Lectra has already integrated cloud, big data, internet of things and AI in its products and services. AI plays a critical role in enabling increased automation, improved decision-making and higher precision in production processes, offering a competitive edge to businesses across sectors. As China continues to lead in AI development, we see great potential for AI-powered solutions. China has a demonstrated the ability to sustain innovation in its thriving tech ecosystem, and we look forward to being part of that journey, leveraging AI to meet the evolving needs of industries we serve.
DING: From drug development to commercialization, AI is transforming the pharmaceutical industry and becoming an important force driving its development. According to market research organizations, the global market size of AI applications in healthcare will reach tens of billions of dollars by 2025. Veeva has always been at the forefront of technological innovation, and Veeva's GenAI strategy is focused on enabling our customers to create value for them. Our AI solutions are currently helping many pharmaceutical companies realize data-driven decision-making, improve R&D efficiency and marketing effectiveness, accelerate drugs to market faster and bring new therapies to patients. With the continuous maturity of AI technology and the expansion of application scenarios, as well as the Chinese government's continued investment in, and support of, science and technology innovation, Veeva will continue to deepen its cooperation with its customers to jointly explore new applications of AI in the pharmaceutical industry, and to provide strong support for the digital-intelligent transformation of China's pharmaceutical companies.
CUI: The rise of AI technologies like DeepSeek is indeed remarkable and signifies the deep integration of AI with various industries worldwide. China is also becoming the market with the most extensive application of AI technologies globally, bringing new opportunities for many companies including Aveva. We see AI as humanity's tool, an exciting innovation that will help meet the sustainability goals and do more with less. Industrial tech — in particular AI — can turbo-charge industries' progress toward efficiency and sustainability. We are currently working with customers across the world to drive the ramping-up of AI to boost productivity and decarbonization. Aveva is confident in China's ability to maintain its innovation capacity in breakthrough technologies in future with strong innovation capabilities and broad prospects for AI applications.
TSAO: The explosive popularity of DeepSeek once again validates Red Hat's vision that "the future of AI is open". Red Hat remains committed to providing efficient, flexible and cost-optimized enterprise-grade open-source AI solutions for businesses worldwide, including in China. We see tremendous growth opportunities in the Chinese market. With its strong R&D capabilities and vast market potential, China's rapid advancements in AI, cloud computing and other fields are fueling global technological innovation. By further expanding openness, and increasing investment in technological innovation, China is well positioned to achieve continuous breakthroughs in AI and other cutting-edge domains, driving industry leadership.
Q4 Driving domestic consumption is one of the top priorities for China to spur economic growth this year. How do you see China's potential to drive a consumption-led impetus for the economy? How will that affect your company's profitability this year?
MOREL: China's large and growing consumer market presents a significant opportunity. As domestic consumption becomes a key driver of economic growth, we see an increasing demand for personalized, sustainable, and high-quality products. This shift aligns perfectly with the solutions we provide to the fashion, automotive and furniture industries and we expect increasing demand from manufacturing companies in these sectors for more efficient, agile and high-quality production technologies. For example, in the automotive sector, the demand for new energy vehicles keeps rising and consumers are increasingly prioritizing comfort and intelligent in-car experiences, requiring higher agility and shorter time-to-market from NEV suppliers. We bring solutions to our customers to adapt to and optimize their processes to meet these expectations and address the changing market dynamics.
DING: China's consumer market has huge potential, especially in the healthcare sector. According to statistics of the National Health Commission, the total scale of China's healthcare industry reached 18.6 trillion yuan last year and is maintaining a rapid growth trend. With the increasing health awareness of people and the aging population trend, the pharmaceutical industry will see great development opportunities. Consumers' growing demand for high-quality pharmaceutical products and healthcare services will inject new vitality into the economy and bring great development opportunities for the pharmaceutical industry. Veeva will leverage its digital technology advantages and service experience in the pharmaceutical industry, and by promoting and supporting the digital transformation of the pharmaceutical industry and pharmaceutical companies, we will help pharmaceutical companies improve operational efficiency and quality throughout the entire process of R&D, manufacturing, and commercialization. At the same time, we are optimistic about the long-term development prospects of the Chinese market and expect our business in China to continue to grow.
CUI: Driving domestic consumption is one of China's key tasks to promote economic growth. And with the continuous development of China's economy, the domestic consumption market has enormous potential. Especially among the younger generation of consumers, there is a greater emphasis on quality and service, which will drive industrial and consumption upgrades. The prosperity of the domestic consumption market presents significant business opportunities, since the clients provide essential goods such as energy, food and medicine. Aveva will closely monitor market trends and promptly adjust product strategies and service models to meet the diverse needs of consumers. At the same time, we are looking forward to enhancing the brand influence through technological innovation and product upgrades.
TSAO: China's push for consumption-driven economic growth holds immense potential. Consumption upgrades will accelerate enterprises' digital transformation and drive them toward higher-value segments of the market. In this process, businesses will seek more cost-effective and innovative technology products and services. With globally leading, full-stack enterprise open-source technologies and services, Red Hat is well positioned to support the transformation and growth of enterprises across various industries. We remain highly optimistic about the future and expect our business to continue strong growth this year, with profitability improving accordingly.
Q5 As China continues to pursue high-quality development along a Chinese path to modernization, what opportunities do you anticipate for your business as this process gains more traction? Will you increase investment in China in the coming years? How will you further expand your footprint in China?
MOREL: As China pursues its path to modernization, the transition to high-quality development presents significant opportunities for Lectra. As part of our long-term commitment, we are exploring investment opportunities in China to expand our production and service capabilities. In November last year, we inaugurated a new factory in Suzhou (Jiangsu province), which reflects our long-term dedication to the Chinese market and part of our "Made in China for China" strategy. We aim at continuing to strengthen our footprint in the country, and providing more Industry 4.0 solutions to the automotive, fashion and furniture sectors to support and accelerate their modernization.
DING: China's high-quality development path brings unprecedented opportunities for Veeva. We will continue to increase our investment in China, especially in product development and innovation, talent training and market expansion, and work hand in hand with more Chinese partners to jointly promote the digital transformation and upgrading of China's pharmaceutical industry. It is Veeva China's mission to build an industry cloud for China's life sciences industry, and China is a strategic focus market for Veeva. We will continue to expand the Veeva China CRM Suite, a commercial solution developed exclusively for the Chinese market, as well as continuously upgrade our solutions for clinical R&D, regulatory, quality, data and consulting to improve the efficiency and effectiveness of the entire process. Veeva is committed to the long-term development of China, and we will continue to be a strategic partner connecting global innovation with local needs to help the life sciences sector achieve high-quality and sustainable development through technology, talent and collaboration.
CUI: As China continues to pursue high-quality development along the path of Chinese-style modernization, we see tremendous business opportunities. High-quality development not only requires improving production efficiency and quality, but also emphasizes sustainable development and environmental protection, which provides a vast market space for Aveva. In the coming years, we will continue to increase investments in China, aiming to continuously introduce global innovations to strengthen cooperation with local enterprises, optimize local business development models and jointly develop products and services that meet the needs of the market. Additionally, we will expand the business scope to cover more industry sectors, such as smart manufacturing and green energy.
TSAO: We see significant business opportunities in enterprise AI, cloud infrastructure, IT automation management, and supporting Chinese enterprises in expanding globally. We will continue to invest in China, including developing more open-source technology talent for various industries. At the same time, we will strengthen and deepen collaboration with local ecosystem partners to better serve niche industries and expand our reach into more second- and third-tier cities.
