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MNCs expand offerings for China's evolving consumer mkt

Country's services economy drives further localization, investment

By Zhong Nan | China Daily | Updated: 2026-07-13 09:14
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Foreign tourists visit Qianmen Street in Beijing on June 14. CHEN QIANG/FOR CHINA DAILY

With China's services economy continuing to expand, multinational companies are introducing innovative products and creating diverse consumption scenarios to tap into new growth opportunities, said business executives.

They said the country's evolving consumer market, rapid digital adoption and expanding trade in services are prompting companies to localize services, accelerate digital transformation and deepen long-term investment in the world's second-largest economy.

One such company is The Hong-kong and Shanghai Hotels Ltd. The Hong Kong Special Administrative Region-based operator of 12 Peninsula hotels worldwide sees the Chinese mainland as a long-term strategic market, supported by its vast consumer base, rising affluence and growing appeal as an international travel destination.

Julien Munoz, the group's chief commercial officer, said China's expanded visa-free policies, improved payment accessibility and a technology-enabled travel environment are helping accelerate inbound tourism.

To capitalize on these trends, the Peninsula Hotels brand will further strengthen its engagement with Chinese consumers through social media platforms, partnerships and destination-focused campaigns, while promoting its overseas hotels in cities such as London, Istanbul, New York and Tokyo to Chinese travelers.

"We are also expanding digital services to remove unnecessary friction from the guest's journey," Munoz said. "After introducing online check-in at selected properties, Peninsula is testing digital room keys that allow guests to unlock their rooms by tapping their smartphones instead of using traditional key cards. The service is expected to be introduced in the Chinese mainland after further testing."

The company's latest initiatives mirror broader trends across China's services sector. China's trade in services grew by 6 percent year-on-year to 3.1 trillion yuan ($456.32 billion) in the first five months of 2026, supported by robust expansion in travel-related, knowledge-intensive and logistics services, data from the Ministry of Commerce showed.

In contrast to goods trade, trade in services refers to the sales and delivery of intangible services like transportation, tourism, telecommunications, advertising, education, computing and accounting.

To meet surging export demand from China's Yangtze River Delta region for markets across the Asia-Pacific region and Europe, German logistics group DHL Express launched a new air route connecting key logistics hubs across Asia and Europe in early July.

Operating between DHL's North Asia hub in Shanghai and its East Midlands hub in the United Kingdom, the route includes stops in Bangkok and Brussels. It provides stronger support for the cross-border movement of time-sensitive shipments from the region.

Chris Williams, senior vice-president of operations at DHL Express China, said the round-trip service adds nearly 200 metric tons of export capacity each week, easing airfreight capacity constraints and supporting export growth in the region.

"By continuing to invest in our dedicated air network and deepen regional connectivity, we are expanding cargo capacity and further enhancing the resilience of our customers' supply chains," Williams said.

PR Newswire, the United States-based provider of communications and marketing services, also plans to further expand its presence in China following the rollout of Amplify, its artificial intelligence-powered communications platform, across the Asia-Pacific region in late June, as demand grows among Chinese companies for AI-driven communications solutions to support their global expansion.

Designed for corporate communications teams, the platform enables users to manage campaign planning, content creation, distribution and performance analysis through a unified workflow.

Jeff Hicks, the company's chief product and technology officer, said AI is changing how companies tell their stories, but effective communication still depends on understanding audiences across different markets.

As Chinese businesses increasingly expand internationally, communications strategies have become more complex, requiring consistent messaging across traditional media, social platforms and AI-driven search engines, he added.

Susan Wohleking, senior vice-president for marketing at PR Newswire, said AI should enhance rather than replace communications professionals.

"AI is a force multiplier," she said."Human communicators continue to provide judgment, creativity and strategic direction, while AI handles repetitive tasks."

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