Maximizing structural market evolution
Q2 China's economy has demonstrated strong resilience so far this year, supported by resilient exports, solid industrial production and continued strength in high-tech manufacturing. How would you assess China's overall economic performance so far this year? Looking ahead, what do you see as the key drivers supporting China's growth in the second half?
HAN: China's economy has demonstrated remarkable resilience and a clear trajectory toward high-quality development. Looking to the second half of the year, we are seeing a profound transition where new quality productive forces — driven by technological breakthroughs and deep industrial transformation — are becoming the definitive engines of growth. High-tech manufacturing remains at the core of this momentum. AI investment is reaching a critical inflection point, with capital accelerating into industrial applications and productive infrastructure. The 15th Five-Year Plan (2026-30), with its strategic focus on future industries like embodied intelligence, provides a highly durable and predictable policy foundation for this transition. On the global stage, China's upcoming hosting of the 33rd APEC Economic Leaders' Meeting in Shenzhen, Guangdong province, in November, further reinforces its indispensable role as a central node in the global economy, fostering a collaborative environment for international enterprises.
WANG: China's economic performance this year has demonstrated remarkable resilience, driven by a clear shift toward high-quality development and the fostering of "new quality productive forces".
In the healthcare sector, we define this "new quality" as the deep integration of cutting-edge biopharma platforms with digitalization to address highly unmet medical needs. As a leading global biotechnology company with 40 years of service in the Chinese mainland, CSL is unleashing this momentum through our local "3N strategy". Looking ahead, we believe the continuous deepening of healthcare modernization and regulatory reforms will remain the premier growth engines. CSL is highly optimistic about China's long-term prospects and is fully committed to contributing to "Healthy China" as a long-term partner.
FAN: At The Estee Lauder Companies, we have always taken a long-term view of China and remain confident in the market's long-term potential. We continue to see strong underlying demand from Chinese consumers, particularly as they increasingly seek high-quality, science-backed and personalized beauty products. This confidence is reflected in our own business, where we have delivered five consecutive quarters of retail sales growth in China through the most recently reported period of March 2026.
Looking ahead, we believe growing demand for high-quality products, together with continued digital transformation, will remain important drivers of growth. Within the prestige beauty industry, consumers increasingly expect seamless experiences across both online and offline channels, while digital technologies are helping brands better understand consumer needs, strengthen consumer engagement and accelerate innovation across the value chain.
At the same time, China's scientific research capabilities and vibrant innovation ecosystem continue to create new opportunities for product innovation. Through our China innovation center, we stay close to one of the world's most sophisticated beauty consumer markets, where expectations for product efficacy, ingredients and personalized beauty solutions continue to evolve. These consumer insights, combined with our global scientific expertise, help us develop products that better meet the needs of Chinese consumers while contributing to our global innovation pipeline.
