China's dynamic expansion opportunities
Q5 Looking ahead to the second half of the year, what will you be watching most closely as indicators of China's economic resilience, reform progress and long-term growth potential?
AVILES: To evaluate China's economic resilience, reform execution and long-term growth potential in the second half, I will track five core structural indicators closely tied to industrial development trends. First, growth momentum of strategic emerging industries such as new energy storage and intelligent connected vehicles, which shapes China's core industrial competitiveness. Second, implementation progress of high-standard opening-up policies, covering services sector liberalization and cross-border standard mutual recognition, which reflects China's commitment to global collaboration. Third, structural recovery of high-end manufacturing investment and service consumption, the fundamental endogenous growth driver. Fourth, progress in integrating Chinese industry standards with international frameworks. Fifth, tangible results of nationwide digital and carbon-neutral transformation.
MUSTO: Looking at the second half, I'm optimistic about what I'm seeing in China's healthcare transformation. First, the speed of innovation reaching patients continues to accelerate. We're witnessing regulatory frameworks and market dynamics that are enabling faster access. Second, China is building more sophisticated reimbursement frameworks that balance patient access with system sustainability. That's exactly the kind of thoughtful policymaking that supports long-term innovation. Third, China's openness to global partnerships and investment is creating a collaborative ecosystem. The infrastructure for clinical trials, talent attraction and cross-border innovation is maturing rapidly. For Merck, this clarity and progress reinforce our conviction. We're deepening our long-term commitment to China and we want to be active participants in China's healthcare ecosystem.
TAN: In the second half, I will track core indicators across two dimensions to assess economic resilience — reform implementation and long-term growth potential. First, consumption recovery indicators that reflect the resilience of the market foundation: I will monitor foot traffic in national commercial districts and outlet malls, the penetration rate of instant retail nationwide, consumer confidence indices, and sales growth in professional sports and youth-related categories. Only when these segments show steady recovery can we confirm that the domestic demand engine is effectively offsetting external risks. Second, the progress of policy reforms related to opening-up and digital upgrading. This includes the effectiveness of foreign investment support policies, supportive measures for multinational R&D centers, and the pace of industrial digital infrastructure construction.
BAO: One of the things we will watch closely is whether rising demand can continue to be matched by responsive and efficient execution. As China's urban renewal continues to accelerate, consumer needs are becoming increasingly tailored and time-sensitive. In that context, resilience is reflected not only in demand itself, but also in how quickly companies can respond and deliver. That is why supply chain responsiveness is an important indicator for us. Last year, we established a smart logistics and assembly center in Shenzhen to better serve the markets in the Guangdong-Hong Kong-Macao Greater Bay Area. We are already seeing clear improvements in delivery efficiency. We will also continue to watch whether policy support for urban renewal and equipment renewal translates into concrete project execution.
