Zafrul expressed optimism that the long-standing Malaysia-China partnership will scale new heights at CIIE and beyond, in an exclusive interview with China Daily.

"We have always been a strong supporter of the CIIE and are grateful to be the guest of honor country this year," Zafrul said. "Our Prime Minister delivered the opening address for the CIIE and over 60 Malaysian companies are involved showcasing products ranging from food and beverages to high-tech solutions like aerospace."

For Malaysia, CIIE represents a pivotal platform to spotlight its export potential and appetite for deeper investment ties with China, its largest trading partner for 15 consecutive years, according to the minister.

The diverse Malaysian contingent, ranging from petrochemicals, food, technology firms and more, underscores the nation's economic dynamism and commitment to maximizing access to Chinese consumers and businesses, he said.

CIIE also enables Malaysian firms to "understand the market by meeting players from other countries", Zafrul explained, lauding it for "giving a platform for many countries and their companies to be more involved in the market and having access to China".

Highlighting Malaysia's participation for the 7th consecutive year, the minister stressed that marketing and trading "cannot be just one-off. It's important to be consistent".

Among the Malaysian exhibitors are firms maintaining a decadeslong presence in China alongside newcomers eager to gain a foothold. "Some Malaysian companies have been in China for the last 20 years, while some are new," Zafrul noted. "It's good to have that mixture of new and old companies."

"The past 50 years have consistently shown stronger and stronger collaboration between the two countries," Zafrul stated. "China has been one of our largest investors, especially in the last 10 to 15 years. We have many Chinese companies who are investing in renewable energy, electric vehicles, data centers and the digital economy in Malaysia."

As a flagship Malaysian project under the Belt and Road Initiative, the East Coast Rail Link connecting the east and west coasts of Peninsular Malaysia is blazing ahead to provide vital rail connectivity. "It's progressing ahead of schedule and will deliver very positive economic spillovers once completed," the minister said.

Looking ahead, as Malaysia assumes the annually rotating ASEAN chair in 2025, its economic aims include finalizing an upgraded ASEAN-China Free Trade Agreement to "further deepen trade collaboration" between ASEAN and China.

Beyond economic components, people-to-people bonds are flourishing amid Malaysia's 50th anniversary celebrations of diplomatic ties with China. Tourism arrivals from China to Malaysia skyrocketed 160 percent year-on-year in the first nine months of this year, according to the minister.

"The 7th CIIE has made a call for upholding an open consensus and expressed firm confidence in promoting high-quality economic development in China," said Chen Jining, Party secretary of Shanghai. "Shanghai will intensify efforts to deepen reform and opening-up to unleash new vitality for high-quality growth."

Shanghai's economy has maintained strong resilience and vitality, holding significance for long-term strategic investments by, and the development of, multinational companies, Chen said.

He highlighted China's long-term growth advantages, robust industrial and supply chains, cost-effective innovation capabilities and policy stability — coupled with Shanghai's deepening economic transformation.

Shanghai Mayor Gong Zheng described the city as an innovative, open and aspiring metropolis ideal for global investment, innovation and entrepreneurship, thanks to its location advantages, industrial mix, resources, government services and ecological environment.

Through further market opening and competitive policies focused on key areas and projects, Shanghai aims to facilitate investment, he added.

At the event, Shanghai signed 23 foreign investment projects spanning biomedicine, high-end equipment, advanced materials, fashion and green low-carbon development.

Executives from multinational companies participating in the event praised Shanghai's business environment and the value of CIIE as a platform.

Deng Jian, vice-president of commercial operations at medical devices giant Medtronic, said Shanghai is crucial for the company, as its headquarters here has been driving development across the country since it entered China 35 years ago.

Medtronic remains upbeat about the Chinese healthcare market and innovation sources, and has increased investments, including in a new cardiovascular devices production line in the Lin-gang special area in Pudong.

Guan Huili, president of Cargill China, said the agriculture and food giant has, by participating in the CIIE for seven straight years, helped build local ties and insights to tailor more products for China.

From just over 10 products initially to over 120 innovations this year, including global premieres, the company has localized some CIIE launches, meeting demand for quality, health and sustainability.

With the firm's China headquarters in Shanghai, Guan said the city's open, inclusive and innovative identity aligns with Cargill's philosophy, representing an important market and platform for better customer service and more innovation.

The 2024 Shanghai City Investment Promotion Conference was held jointly by the Ministry of Commerce and Shanghai Municipal People's Government.

"These products all looked and tasted authentic, and seemed worth the prices I paid for them. When I was studying abroad, I often fetched some cosmetics, handbags and electronic devices for my relatives and friends at home," Zhang said.

"After returning to my homeland, I found online shopping very convenient and more discounts are available on such foreign products during some promotional events," she said.

Zhang is among a growing number of Chinese consumers who are exhibiting vibrant purchasing power for imported and foreign-branded products, which have become a key driver of upgraded consumption fueled by preferential policies. Lower tariffs, an expanded list of imported goods and a gradual improvement in cross-border logistics are all a big deal, industry insiders said.

Cross-border online shopping was a term largely unheard of two decades ago. But today, it has become an important driving force for bolstering the steady growth of foreign trade, they said.

According to a report released by Chinese e-commerce giant JD's Consumption and Industry Development Research Institute, people aged 26-35 are the main consumers of imported commodities, accounting for 45 percent of buyers, while consumers in the 46-55 age group have contributed to the fastest growth in purchases of imported products.

Personal care products, cosmetics and skincare, food and beverages, as well as maternity and infant products are the categories most favored by Chinese consumers buying imported goods, the report said.

While residents living in first-tier cities have become the primary purchasers of imported products, consumers in lower-tier markets have shown a growing interest in buying such commodities, it said.

"Chinese consumers have shown rising purchasing demand for diversified, personalized and niche overseas products, and are attaching more importance to the value of the goods they buy," said Zhang Zhouping, a senior analyst who tracks business-to-business and cross-border activities at the Internet Economy Institute, a domestic consultancy.

Zhang said cross-border e-commerce has played a significant role in enriching product supply, bolstering the development of new business models and promoting the recovery of consumption. He called for greater efforts to further optimize the list of imported retail goods for cross-border online purchases.

Orders of online cross-border shopping are still mainly being placed in first-tier cities, but residents in second- and third-tier cities have shown rapidly growing purchasing power, he said.

China's cross-border e-commerce industry has seen robust growth in recent years, with the sector's import and export scale reaching 1.22 trillion yuan ($171.5 billion) in the first half of this year, up 10.5 percent year-on-year, data from the General Administration of Customs showed.

Market consultancy iiMedia Research said China's further opening-up, gradual improvement in logistics and deliveries and consumers' rising demand for imported goods will provide a big boost to consumption upgrade.

"The penetration rate of cross-border e-commerce in lower-tier cities and townships has been increasing in the past few years," said Chen Tao, an analyst with internet consultancy Analysys in Beijing.

He said that online shopping via livestreaming videos — a quick way for domestic consumers to find detailed information on overseas products — has become popular among the post-1980s and post-1990s generations of consumers.

Even as foreign brands ride cross-border e-commerce channels to reach Chinese consumers, Chinese platforms are speeding up their push into overseas markets.

Temu, the cross-border e-commerce platform launched by Chinese online discounter PDD Holdings, has gained popularity among overseas consumers as it offers a wide selection of merchandise, including apparel, consumer electronics, jewelry, shoes, cosmetics and baby products at competitive prices.

First launched in the US in September 2022, Temu has entered more than 50 countries in North America, Europe, Asia and Oceania.

Chen Lei, chairman and co-CEO of PDD Holdings, said the company hopes to leverage the supply chain capacities it has accumulated over the past years to create a new channel that enables consumers from different countries and regions to directly purchase products from factories, providing more flexible and personalized supply chains and more cost-effective shopping experiences.

Fast-fashion online retailer Shein is ratcheting up resources to help Chinese manufacturers and brands expand their presence abroad, and give a strong boost to the transformation of traditional industries by making use of its digital and flexible supply chains.

Shein said for sellers who are good at designing and producing products, but have no overseas sales and operations experience, it will provide one-stop services, including commodity operations, warehousing, logistics, customer service and after-sales service.

Cross-border e-commerce is increasingly becoming a new growth driver for China's foreign trade, said Cindy Tai, vice-president of Amazon and head of Amazon Global Selling Asia.

Tai said the company will ramp up efforts to help Chinese merchants build brands, simplify global operations, optimize global supply chain services, expand their global footprint, as well as scale up localization inputs this year.

China's fast-developing cross-border e-commerce sector offers a glimpse of how online shopping activities have injected strong impetus into China's consumption, which has become the main driving force boosting economic growth.

Major domestic e-commerce platforms such as Alibaba Group Holding Ltd, JD and PDD, which connect countless business owners with hundreds of millions of customers looking for cost-effective deals, have already changed the traditional retail landscape of the world's second-largest economy.

Industry insiders said e-commerce had been regarded as a supplement for a long time to brick-and-mortar businesses until a promotional event called Singles' Day shopping carnival turbocharged its stellar rise. Initiated by Alibaba in 2009, the Double 11 or 11-11 promotional gala each November has morphed into the world's biggest online shopping event.

Both Alibaba and JD are now placing greater emphasis on empowering brands and small and medium-sized merchants by helping the latter achieve digitalized operations, as well as providing cost-effective products to capture price-sensitive consumers.

The development of Taobao villages, which refer to a cluster of retailers within an administrative village where residents have embraced e-commerce primarily by using Alibaba's Taobao online marketplace, has helped lift many Chinese rural areas out of poverty by promoting agricultural products and other local specialties online.

Mo Daiqing, a senior analyst at the Internet Economy Institute, emphasized the importance of the online retail segment in boosting consumption, expanding employment and improving people's livelihoods, thus helping enhance resilience of the real economy.

Mo said the major online shopping carnivals like Singles Day and the June 18 promotional campaigns are pivotal to stimulating consumers' purchasing appetites and promoting the recovery of consumption. Meanwhile, more brands are paying enhanced attention to improving consumer experience, as well as providing various discounts and membership services, striking a balance between chasing commercial interests and optimizing user experience.

"Chasing high gross merchandise volume, or GMV, is no longer the focus of China's online shopping extravaganzas, while consumers are increasingly looking for cost-effective local alternatives as Chinese brands' product quality and safety improve," Mo said.

Noting that Chinese consumers are more rational now and carefully review their needs, with an emphasis on quality and product value, Mo said what e-commerce platforms should do is to improve supply chains and optimize business and operational models in accordance with shoppers' buying habits and preferences.

Wang Yun, a researcher from the Chinese Academy of Macroeconomic Research, which is affiliated with the National Development and Reform Commission, said online shopping symbolizes New Retail, and has been playing a significant part in reducing transaction links and information asymmetry, enhancing transaction efficiency of commodities, improving consumer shopping experience and fostering high-quality economic development.

Retail sales, a significant indicator of consumption strength, grew 3.5 percent year-on-year in the first seven months, said the National Bureau of Statistics. Online retail sales jumped 9.5 percent year-on-year during the January-July period, sustaining a relatively high growth.

China's consumer market is expected to see a recovery in growth this year, while calling for efforts to further cut taxes and fees for micro, small and medium-sized enterprises, expand employment and increase household disposable incomes to further perk up consumption, said Zhao Ping, head of the Beijing-based Academy of China Council for the Promotion of International Trade.

In addition, to meet growing consumer demand for a wide range of products and nurture new consumption growth points, Chinese e-commerce platforms should launch customized, intelligent and green products by leveraging next-generation information technologies like 5G, artificial intelligence and big data, she said.

The logo of Temu is seen on a mobile phone displayed in front of its website, in this illustration picture taken April 26, 2023. [Photo/Agencies]

China's cross-border e-commerce platform Temu is taking the world by storm with its user base reaching 91 percent of Amazon's in August, recent statistics showed.

In a survey covering 84 countries and regions, over 60 percent of users in various areas showed a preference for Temu, particularly in Europe, where 28 countries' users expressed a preference for Temu compared with other e-commerce platforms, Japanese news outlet Nikkei said, citing data from analysis firm Sensor Tower.

The Chinese platform's user base may surpass that of Amazon by the end of the year, Nikkei said.

Experts attributed this success to Temu's low-price strategy as it sells a large quantity of nonbranded goods and minimizes intermediary links in the supply chain to control price hikes. It also leverages local tax mechanisms for low-priced goods to manage costs. Upon arrival in foreign markets, it adopts a "direct delivery "model for consumers, reducing inventory management fees and further lowering prices.

They said Temu's triumph is a microcosm of the rapid expansion of Chinese e-commerce on the global stage.

Temu operates through the temu.com website and Temu app, owned by Chinese e-commerce company PDD Holdings.

"Temu's user base is approaching that of Amazon, showcasing strong growth momentum, primarily driven by its low-price strategy, efficient logistics and diverse product range. In the future, Temu needs to continuously enhance user experience, strengthen brand trust and enhance global market competitiveness," said Hong Yong, an associate research fellow at the Chinese Academy of International Trade and Economic Cooperation's e-commerce research institute.

Divided by region, recent data from Sensor Tower said Temu was tops among shopping apps on iOS devices in the US in the third quarter, with downloads exceeding 8 million.

Temu's expansion in Southeast Asia is also accelerating, with recent launches in Vietnam and Brunei. With these additions, Temu now operates in five markets in Southeast Asia.

Temu's global growth rate is remarkable. As reported by media outlet 36Kr, Temu's gross merchandise volume reached around $20 billion in the first half, surpassing its full-year 2023 sales. By July this year, Temu had expanded to over 70 countries and regions.

Hong said that Temu's success overseas mirrors China's cross-border e-commerce expansion. He noted that government policy support, market diversification and increasing brand influence — along with the rise of emerging markets and technological innovation — are presenting new opportunities for cross-border e-commerce platforms.

"However, challenges such as intensified market competition, high logistics costs, intellectual property protections and cultural differences still persist. In the future, Chinese cross-border e-commerce platforms will need to focus more on branding and technological innovation, deepening international cooperation, and achieving higher-quality global development," Hong added.

Although Schwan did not directly comment on China's subsidy policies, his criticism of the West can also be construed as indirectly aimed at China. Regardless of his intention, his comments exposed Western hypocrisy regarding China's industrial policies.

China indeed has implemented extensive industrial policies, offering tax breaks and other aids, to develop new energy and emerging sectors such as EVs, semiconductors, artificial intelligence and blockchain technologies.

Since the early 2000s, the Chinese government has offered procurement contracts to purchase EVs for public transit, as part of green development. These contracts helped domestic EV makers such as BYD stay afloat and enabled them to learn and improve quickly.

Concerns about China's dominance in EVs and EV batteries affecting the economy, job growth and the automotive industry in the West led the European Commission to launch investigations into subsidies for Chinese electric cars. The commission alleged that these subsidies allow Chinese manufacturers to undercut European automakers. Simultaneously, the US government accused China of maintaining industrial overcapacity, leading to lower prices and hurting global competitors, especially in the EV sector.

Instead of finding ways to develop affordable EVs in the West to compete with Chinese EVs, Western countries decided to use import tariffs to "level the playing field". The US and Canada imposed 100 percent tariffs on EVs imported from China, while the EU plans to impose tariffs of up to 38 percent on imports of Chinese EVs.

However, the West's criticism of China's industrial subsidies is hypocritical, given its similar practice.

The US has been actively supporting its manufacturing sector with substantial subsidies. For instance, the $7,500 tax credit for purchasing EVs in the US is subject to various labor content requirements imposed by the Inflation Reduction Act. To qualify for the full $7,500 tax credit, EVs must meet specific criteria regarding the sourcing of battery materials: At least 40 percent of the value of critical minerals and components used in the battery must be extracted or processed in the US or a country with a free-trade agreement with the US.

Additionally, the CHIPS and Science Act has provided significant funding to companies like Intel and TSMC of China's Taiwan region to build advanced semiconductor factories in the US. For example, Intel received $8.5 billion this year for its semiconductor projects, including new factories in the states of Ohio, Arizona, New Mexico and Oregon. Similarly, TSMC was awarded $6.6 billion to expand its operations in Arizona.

Across the Atlantic, the EU offers various subsidies and tax incentives to both manufacturers and consumers. These include purchase subsidies, tax rebates and grants for research and development in EV technology.

Throughout history, government subsidies have played a crucial role in jump-starting nascent technologies with highly uncertain success rates and financial returns.

In the US, the Advanced Research Projects Agency Network, the precursor to the modern internet, was funded by the US Department of Defense in the 1960s. In recent years, US government subsidies for renewable energy increased from $7.4 billion in 2016 to $15.6 billion in 2022. Additionally, US defense contracts continue to support internet-related technologies, including the development of AI applications, quantum computing, unmanned aerial vehicles and space technologies.

Beyond EVs, European governments have offered subsidies to protect various industries. For example, the EU's Common Agricultural Policy provides direct subsidies to farmers to ensure sustainable food production, stable income and fair living standards for agricultural workers. In the technology and innovation sectors, many European countries offer subsidies to promote renewable energy. Germany's Renewable Energy Sources Act, for instance, provides financial incentives for firms to produce renewable energy such as wind and solar power.

The EU also has various programs to support technological innovation. Horizon Europe, for example, is the EU's key funding program for research and innovation, running from 2021-27 with a budget of 95.5 billion euros ($104 billion). It aims to tackle global challenges, including climate change, and boost the EU's competitiveness and growth by facilitating collaboration and strengthening the impact of research and innovation.

Industrial subsidies remain a polarizing issue in global economic policy circles. Without giving specific examples, Schwan's criticism of Western subsidies is indeed perplexing. It is hypocritical of the West to criticize China's industrial subsidies while it subsidizes its own various critical and nascent industries.

Open and collaborative partnerships are the intrinsic forces for developing the global new energy vehicle industry, in order to drive technological advancements and tackle climate change, officials and executives said on Wednesday.

China's NEVs not only provide diversified and cost-effective choices for global consumers, but also help more countries achieve green and low-carbon transformation and sustainable development, they said during the seventh Hongqiao International Economic Forum in Shanghai.

Globalization is the most apparent feature of the automotive industry's evolution. The evidence is clear — it is openness to technology and cooperation across the value chain that have fueled rapid advancements in the sector, said Xiong Jijun, vice-minister of industry and information technology.

China's automotive industry, and particularly its NEV segment, has achieved this impressive growth by persistently driving technological innovation and embracing global division of labor and cooperation, Xiong added.

In 2023, China's pure electric vehicle market share reached an impressive 62 percent globally, and this has continued unabated through the first eight months of this year, data from the China Passenger Car Association showed.

However, some nations are now resorting to trade barriers such as tariff hikes and technical standards to restrict the use of Chinese-made electric vehicles in their markets. This growing protectionism comes at a time when the world is rapidly transitioning toward sustainable mobility.

More than 50 economies have now set clear development goals for NEVs, from the European Union's target of zero emissions by 2035 to the United States' aim of 50 percent NEV sales by 2030.

In the past, Chinese automotive companies were often in a position to follow and catch up with their Western counterparts, said Yin Tongyue, chairman of Chinese carmaker Chery.

But now that China has gained a technological edge, it has a responsibility to empower these global partners and enable them to also achieve healthy development and successful transformation, Yin said.

China's vision is not about dominating the global automotive landscape, but rather about leveraging its capabilities to create a shared, collaborative ecosystem that benefits all stakeholders, he added.

On the other hand, the EU and the US have built up extensive expertise in the recycling and repurposing of used EV components and battery packs, and this experience holds strong relevance and lessons for China, said Sam Wu, Ford's global vice-president.

Going forward, China will deepen international cooperation and welcome more enterprises from other countries to increase their investment and collaboration in the country. Efforts will also be made to help these companies resolve the issues they encounter during their development, Xiong said.

China will strengthen its cooperation with other nations on standards and regulations, and explore policies to facilitate the cross-border flow of data, to promote the harmonization of standards and rules, Xiong added.

Singapore, Malaysia and Thailand have become popular overseas destinations for Chinese visitors, fueled by their visa-free entry policies and proximities to China, with many consumers tending to buy tickets one week, and go on their trips the following week, according to a report by Qunar, a Beijing-based online travel agency, and Scoot, the low-cost arm of Singapore Airlines Group.

A more flexible approach to traveling rather than planning far in advance has become a new trend. For the National Day holiday break, the number of Chinese travelers who booked trips within seven days of departure grew by 21 percent year-on-year, Qunar found.

Southeast Asia has become the top choice for many young Chinese travelers with short flying distances and cheaper prices, making them especially attractive outbound destinations. Travelers have booked more affordable homestays, packages that include flights and hotels, as well as flights that are operated by low-cost airlines.

Scoot said more than 60 percent of travelers who took its flights for the week-long National Day holiday booked the tickets in September, and 25 percent of travelers booked the flights within seven days of departure.

"Some Southeast Asian destinations with high cost-effectiveness such as Kota Kinabalu and Penang in Malaysia, and Phuket in Thailand, were among the most popular destinations in the region during the National Day holiday break," said Bernard Sim, the recently promoted general manager for Scoot in China.

Besides, many young people no longer tend to carry heavy luggage. Instead, they opt for lightweight travel with just a backpack or a 20-inch carry-on suitcase for a trip, the report found.

As of July, the number of flights connecting China and Singapore fully recovered to pre-pandemic levels seen in 2019, and the number of Chinese travelers visiting Singapore reached 106 percent of 2019 levels, according to the Singapore Tourism Board.

Travel is no longer about sightseeing, and going to a place for a variety of shows, exhibitions, sporting events or concerts has become a new way for young people to enhance their travel experiences.

During the period when Taylor Swift held a concert in Singapore in March this year, the number of post-1990s Chinese travelers visiting Singapore hit a historic high, data from the Singapore Tourism Board showed.

In the second half of the year, Singapore and Malaysia held concerts by superstars including Jay Chou, Andy Lau and Dua Lipa, as well as hosting several international music festivals.

On the day when the tickets of popular concerts went on sale, fans who secured the tickets also quickly booked their flights at the same time, the report found.

In addition, more young Chinese travelers no longer prefer popular internet-famous tourism spots. They tend to seek places with beautiful sceneries and fewer crowds, and hidden gem destinations that haven't been overly commercialized. More young people also prefer to travel during off-peak periods to enjoy better experiences at a lower cost, the report found.

Sarawak, a niche destination in eastern Malaysia, saw the number of Chinese mainland travelers from January to July surpass the total number seen in the whole of 2023, according to Sarawak Trade and Tourism Office Singapore.

Over the seven-month period, the number of Chinese mainland visitors jumped 90 percent year-on-year. In July, a peak travel season in summer, Sarawak saw a record number of monthly visitors from the Chinese mainland, data from the office showed.

Moreover, hiking, camping, diving, spelunking, rock climbing and other outdoor activities have become increasingly popular for Chinese travelers. During the Golden Week holiday break, Surabaya in Indonesia was popular with many outdoor enthusiasts, Scoot said.

A cargo ship docks at Qinzhou Port in China-ASEAN Free Trade Area in Qinzhou, Guangxi Zhuang autonomous region. [Photo/Xinhua]

China's foreign trade expanded 5.2 percent year-on-year to 36.02 trillion yuan ($5.02 trillion) in the January-October period of 2024, statistics from the General Administration of Customs showed on Thursday.

Exports rose 6.7 percent yearly to 20.8 trillion yuan, while imports climbed 3.2 percent year-on-year to 15.22 trillion yuan during this period, customs data showed.

China's exports of electro-mechanical products grew by 8.5 percent year-on-year to 12.36 trillion yuan between January and October, accounting for 59.4 percent of its total exports.

The import and export value of China's private companies reached 19.85 trillion yuan in the first ten months, an increase of 9.3 percent year-on-year, accounting for 55.1 percent of the country's total foreign trade value, according to the administration.

In the meantime, foreign-invested businesses recorded a foreign trade value of 10.61 trillion yuan, up 1.3 percent on a yearly basis, accounting for 29.5 percent of the nation's total.