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1、 2024 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KP

2、MG International Limited,a private English company limited by guarantee.All rights 20242024 China CEO Outlook2024 marks the 75th anniversary of the founding of the Peoples Republic of China.It is also a crucial year for the 14th Five-Year Plan.Currently,the world is experiencing profound changes of

3、an unprecedented scale,and the domestic and global landscapes are becoming increasingly complex and uncertain.With a new round of technological revolution and industrial transformation in full swing,domestic economic restructuring and the transition from old to new growth drivers have entered a crit

4、ical stage that will have a significant impact on Chinas economic recovery and growth.As a global leader in professional services,KPMG continues to focus on how business leaders view future development,as well as the opportunities and challenges they will face in terms of business strategy and opera

5、tions.This is the tenth year that KPMG has launched the Global CEO Outlook.The report provides in-depth insights to global business executives on business and economic development in the next three years from a medium and long-term perspective.In order to provide better insights into the priorities

6、and strategic vision of Chinas entrepreneurs,we have further expanded the survey sample of Chinese enterprises in this years edition,and focused on their short-term views on economic development,business operations and strategic adjustments,to provide readers with a broader perspective.In this years

7、 survey of Chinese CEOs,I am most impressed by how they view the growth prospects of the economy and adjustments to business strategies.We see that many business leaders believe that Chinas economy is at a critical stage of restructuring and transformation,with certain challenges arising due to cycl

8、ical and structural issues.At the same time,business leaders remain confident in the growth prospects of Chinas economy in the next three to five years,and they are actively pursuing the development opportunities brought by the latest industrial transformation.In the face of the complex domestic and

9、 global environments and ever-changing market landscape,business leaders are actively adjusting strategies and seeking growth by taking measures to enhance the resilience and agility of their organisations.In this regard,we are seeing three major trends.First,Chinese enterprises are stepping up thei

10、r global strategic deployment,and going global has become an inevitable trend.Due to changes in the domestic consumer market,disruptions in global supply chains and increasingly complex geopolitical relationships,going global has become a critical strategy for Chinese enterprises to expand their mar

11、kets and hedge risks,and setting up localised business operations is a key step for success.Foreword2024 China CEO Outlook2024 China CEO Outlook1 1 2024 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(S

12、AR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2024 China CEO Outlook2024 China CEO Outlook2 2 2024 KPMG Hua

13、zhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG Internation

14、al Limited,a private English company limited by guarantee.All rights reserved.Second,the rise of artificial intelligence(AI)will empower enterprises development of new quality productive forces,helping them transform their digitalisation initiatives into intelligence-oriented strategies.Since the be

15、ginning of 2024,Chinas AI industry has been going strong,adding new momentum to economic and social development.Business leaders believe that AI,especially generative AI,is disrupting existing business models and creating new opportunities that will transform industry and business landscapes.They al

16、so say that talent and data are key for the adoption of AI.Many business managers say that they will strengthen their scientific AI talent training systems and establish robust data governance frameworks,while also maintaining ethical practices and effective privacy protection,to help their enterpri

17、ses and employees gain competitive advantages in the AI era.Third,the environmental,social and governance(ESG)agenda has become a key component of the sustainable development strategy of business organisations.We have observed that,amid strong policy support,the green and low-carbon transformation h

18、as become a major trend for Chinese enterprises.Business leaders have increasingly realised that the implementation of ESG strategies can bring about many long-term benefits to their business,and they say that they will continue to promote ESG investment to improve the sustainability of their enterp

19、rises.Going forward,the key to the successful implementation of ESG strategies is to better integrate ESG into core business strategies,so as to generate momentum that will drive sustainable development.As the saying goes,“Follow the path,and work even harder once you make it halfway through,as the

20、mountain peak is already in sight.As Chinas economy pursues high-quality development,strategic opportunities and challenges have emerged at the same time.With tenacity,keen insight and bold actions,Chinas entrepreneurs will be able to navigate the complexities and challenges and lead their organisat

21、ions to a successful future.We hope that this survey report helps readers better understand the concerns and strategic visions of Chinas entrepreneurs.In the coming years,KPMG looks forward to working with enterprises and other stakeholders to forge ahead and open a new chapter for the high-quality

22、development of Chinas economy.ForewordHonson ToChairman,KPMG Asia PacificChairman,KPMG China2 22024 China CEO Outlook2024 China CEO Outlook 2024 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partn

23、ership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2024 China CEO Outlook2024 China CEO Outlook3 3 2024 KPMG Huazhen LLP

24、,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limit

25、ed,a private English company limited by guarantee.All rights reserved.01 Short-term economic growth is expected to slow down amid the structural transition04Content06 Medium-term business strategies focus on global deployment,technological innovation,and mergers and acquisitions1902 Intensifying dom

26、estic competition hinders business development0807Expanding overseas is an imperative2203 Reducing costs and raising efficiency are regarded as short-term operational priorities1008Embracing AI has become a reality2904 Prospects for medium-term economic growth rebound with the emergence of new growt

27、h momentum1309Leveraging the value of data elements to enable digital intelligence3505 Supply chain disruptions,geopolitical uncertainty and technological changes will become the main challenges in the medium term1610Boosting ESG investment to achieve sustainable development40Appendix45 2024 KPMG Hu

28、azhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG Internatio

29、nal Limited,a private English company limited by guarantee.All rights reserved.4 42024 China CEO Outlook2024 China CEO Outlook0%20%48%28%4%2%11%43%38%7%0%10%20%30%40%50%60%Not confidentNot very confidentNeutralConfidentVery confidentChina EconomyGlobal EconomyFollowing the pandemic,from 2020 to 2022

30、,Chinas economy entered a new development stage.In 2024,with the rebound of global manufacturing and the beginning of the interest rate cut cycle in developed economies,Chinas export demand has rebounded significantly,and industrial production and manufacturing investment remain robust thanks to boo

31、ming external demand.In addition,Chinas investment in high-tech industries has maintained steady growth this year with the acceleration of new quality productive forces,contributing to economic stability and recovery.However,in the process of cultivating new economic drivers,traditional growth secto

32、rs have steadily declined since 2021.As the problem of insufficient domestic effective demand gradually crystallises and commodity prices deflate,the income and profit expectations of residents,enterprises and the government have declined,which has hindered consumption and investment.It is clear tha

33、t the domestic economy is at a critical stage of restructuring and transformation,with certain challenges arising due to cyclical and structural issues.In this years Government Work Report,the government set an economic growth target of around 5%,which is lower than the economic growth of 5.2%that w

34、as recorded in 2023,as well as the annual average economic growth of 6%prior to the pandemic.KPMG Chinas 2024 China CEO Outlook shows that 45%of the surveyed CEOs are confident in the growth prospects of the economy in the coming year,while 13%are less confident(Figure 1).Short-term economic growth

35、is expected to slow down amid the structural transition章節一短期挑戰章節三章節四章節五章節六章節七章節八章節九章節十附錄ShortShort-term term expectationexpectationShort-term challengeShort-term strategyMid-term expectationMid-term challengeMid-term strategyExpanding overseas AIDigital intelligenceESGAppendixFigure 1Figure 1Chinese

36、 CEOs confidence in the growth prospects of Chinas economy Chinese CEOs confidence in the growth prospects of Chinas economy and the global economy over the next year,%and the global economy over the next year,%Source:KPMG 2024 China CEO Outlook2024 China CEO Outlook2024 China CEO Outlook5 5 2024 KP

37、MG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG Inter

38、national Limited,a private English company limited by guarantee.All rights reserved.章節一短期挑戰章節三章節四章節五章節六章節七章節八章節九章節十附錄ShortShort-term term expectationexpectationShort-term challengeShort-term strategyMid-term expectationMid-term challengeMid-term strategyExpanding overseas AIDigital intelligenceESGAp

39、pendixThe global environment remains complex and fast-changing,with increasing risks and challenges.In the first half of 2024,the global economy began to stabilise and recover,stimulating trade activity and export performance in the Asia Pacific region.However,with the pace of normalisation of polic

40、y interest rates in developed economies slowing,geopolitical conflicts emerging frequently,trade protectionism intensifying,and uncertainty around economic policies arising in the election year,global economic growth is expected to suffer further setbacks.According to the World Economic Outlook repo

41、rt updated by the International Monetary Fund(IMF)in October 2024,the forecast for global economic growth in 2024 is 3.2%,a 0.1%decrease compared to 2023.In 2024,developed economies are expected to grow by 1.8%,while emerging markets and developing economies is forecast to grow by 4.2%,both below th

42、e historical average growth rate in the decade before the pandemic,i.e.from 2010 to 2019(Figure 2).In this years survey,Chinese CEOs say they have weak expectations for the global economy.32%of the respondents are confident about the global economy over the next year,lower than those who have confid

43、ence in Chinas economic growth.On the other hand,20%of the surveyed CEOs are less confident about the growth prospects of the global economy over the next year.Against this backdrop,most respondents top concern is to survive current hardships instead of developing and expanding.Figure 2Figure 2The I

44、MFs forecast of global economic growth,%The IMFs forecast of global economic growth,%RegionRegion202320232024E2024E2025E2025EWorldWorld3.33.23.2Advanced EconomiesAdvanced Economies1.71.81.8United StatesUnited States2.92.82.2Euro AreaEuro Area0.40.81.2United KingdomUnited Kingdom0.31.11.5Japan Japan

45、1.70.31.1Emerging Market and Developing EconomiesEmerging Market and Developing Economies4.44.24.2ChinaChina5.24.84.5IndiaIndia8.276.5RussiaRussia3.63.61.3MexicoMexico3.21.51.3Saudi ArabiaSaudi Arabia-0.81.54.6Source:World Economic Outlook,IMF,October 2024,KPMG Analysis 2024 KPMG Huazhen LLP,a Peopl

46、es Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a pri

47、vate English company limited by guarantee.All rights reserved.6 62024 China CEO Outlook2024 China CEO OutlookDespite the current slowdown in macroeconomic growth and other challenges,many industries have been ushering in unprecedented development opportunities,and business leaders in certain industr

48、ies remain optimistic about future revenue growth.Our survey shows that CEOs who are confident about revenue prospects in 2024 are mostly from the industrial manufacturing and technology sectors.Particularly,more than 90%of industrial manufacturing CEOs expect to maintain positive revenue growth thi

49、s year.The revenue of the industrial manufacturing sector has remained stable in 2024,partly due to the countrys strong export performance this year.Chinas export growth rate in the first three quarters of this year rose to 4.3%,compared to-4.7%for 2023 as a whole.Industries with high export depende

50、nce,such as the computer,communication and other electronic equipment manufacturing industry and the shipping industry,are experiencing a boom in production.The other contributing factor is that the government has accelerated the roll-out of equipment renewal policies at a large scale since the begi

51、nning of this year.From January to September 2024,investment growth in the equipment manufacturing sector rose to 16.4%,and demand in upstream manufacturing industries such as non-ferrous metal smelting has also rebounded.CEOs in the technology sector also express confidence in revenue growth for th

52、is year.In this years survey,94%of CEOs are confident that they will see operating revenue growth of over 5%over the next year(Figure 3).For the purposes of this survey,the technology sector mainly covers consumer electronics,electronic equipment(semiconductors),software,AI,and other subsectors.The

53、revival of the technology sectors revenue prospects is in part driven by the recovery of the global semiconductor industry.The industrial cycle for the semiconductor sector is generally three to five years,in line with the operating model of the inventory cycle.In the fourth quarter of 2023,global s

54、emiconductor sales bottomed out compared with the same period in the prior year,and revenue has since been steadily climbing.章節一短期挑戰章節三章節四章節五章節六章節七章節八章節十附錄ShortShort-term term expectationexpectationShort-term challengeShort-term strategyMid-term expectationMid-term challengeMid-term strategyAIESGApp

55、endixExpanding overseas 章節九Digital intelligence2024 China CEO Outlook2024 China CEO Outlook7 7 2024 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,a

56、re member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.In addition,domestic policies have also provided tremendous support for the technology sector.In September 2023,Pr

57、esident Xi Jinping visited Heilongjiang and first proposed the concept of new quality productive forces.New quality productive forces mainly include strategic emerging industries such as information technology,AI,and quantum computing.At the beginning of 2024,the Government Work Report further clari

58、fied the task of vigorously promoting the construction of a modern industrial system and accelerating the development of new quality productive forces,and ranked this task first on the list of the top 10 annual tasks.Since the beginning of 2024,both monetary and fiscal policies have been strengthene

59、d to promote the development of new quality productive forces.Financial policy support for new quality productive forces mainly involves five areas:strengthening top-level design,loans supporting the technology sector,broadening financing channels,promoting cross-border financing,and construction of

60、 technological and innovative financial reform pilot zones.Fiscal policy support focuses on financial support,fiscally subsidised interest rates,and tax and fee reductions,among other areas.Under these favourable policies,cumulative investment in high-tech manufacturing in the first three quarters o

61、f 2024 increased by 9.4%year-on-year,and the purchasing managers index(PMI)of high-tech manufacturing continued to rise throughout the year,remaining above the average level of all manufacturing subsectors.As of September 2024,the production index and new order index for the computer,communication a

62、nd electronic equipment industry and other sectors are on the rise,with product demand quickly climbing,pushing up the revenue expectations of related enterprises.Figure 3Figure 3Chinese CEOs outlook for revenue growth over the next year by sector,Chinese CEOs outlook for revenue growth over the nex

63、t year by sector,%Decrease6%Increase by 5%or more94%TechnologyTechnologySource:KPMG 2024 China CEO OutlookDecrease9%Increase by 0%5%32%Increase by 5%or more59%Industrial manufacturingIndustrial manufacturing章節一短期挑戰章節三章節四章節五章節六章節七章節八章節十ShortShort-term term expectationexpectationShort-term challengeSh

64、ort-term strategyMid-term expectationMid-term challengeMid-term strategyExpanding overseas AIESG附錄Appendix章節九Digital intelligence2024 China CEO Outlook2024 China CEO Outlook8 8 2024 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Ch

65、inese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Intensifying domestic competitio

66、n hinders business developmentDue to the lack of effective domestic demand,certain industries in China have been facing the problem of overcapacity since the beginning of 2024.In the first half of the year,the utilisation rate of nation-wide industrial capacity fell to 74.3%,the lowest since the pan

67、demic.In order to consume the existing capacity,certain industries adopted a low-price strategy to boost sales volumes,which led to a“rat race”competition.In our survey,49%of the surveyed CEOs say that intensified market competition has a significant impact on their enterprises short-term developmen

68、t(Figure 4).For example,as a result of the imbalance in supply and demand in the photovoltaic industry,pricing along the main photovoltaic industry chain continued to fall in the first half of 2024.Certain products were even priced well below their production costs,reflecting that the industry had b

69、een dominated by ruthless competition.To address this issue,the China Photovoltaic Industry Association recently called on enterprises to strengthen industrial self-discipline,engage in market competition in accordance with laws and regulations,and not to sell products or place bids at prices that a

70、re well below costs,with a view to promoting the healthy development of the industry.Figure 4Figure 4External factors that will have the greatest impact on enterprises External factors that will have the greatest impact on enterprises growth over the next year,%growth over the next year,%Source:KPMG

71、 2024 China CEO Outlook1%6%7%8%18%24%35%36%44%46%49%0%20%40%60%Reputational riskSupply chainCyber securityTalentEmerging/disruptive technologiesInsufficient demandChanges in consumer behaviorGeopolitical challengesUncertainty in macroeconomic environmentChanges in government regulatory policiesInten

72、sified market competition章節一短期挑戰章節三章節四章節五章節六章節七章節八章節十附錄Short-term expectationShortShort-term term challengechallengeShort-term strategyMid-term expectationMid-term challengeMid-term strategyAIESGAppendixExpanding overseas 章節九Digital intelligence 2024 KPMG Huazhen LLP,a Peoples Republic of China part

73、nership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limi

74、ted by guarantee.All rights reserved.9 92024 China CEO Outlook2024 China CEO OutlookIn addition,our survey also shows that 45.6%of surveyed CEOs think that changes in regulatory policies also pose challenges to their enterprises short-term development.If we divide macro policies into two categoriess

75、ustaining growth and risk preventionthen,since 2021,Chinas macro policies have been focused on risk prevention.During this period,the government has steadily advanced risk prevention and mitigation efforts in three key areasreal estate,local government debts,and risks of small and medium-sized finan

76、cial institutionswith the aim of preventing the emergence of systemic risk events and ensuring economic and financial stability.Against this backdrop of risk prevention and mitigation,credit and investment expansion by local governments and the real estate industry has slowed down.In addition,since

77、2021,the Chinese government has successively increased the supervision and regulation of the education and training industry,Internet platforms,the financial industry,and energy-intensive industries,among others.In 2024,the China Securities Regulatory Commission(CSRC)has continued to promote the imp

78、lementation of the new National Nine Articles and the 1+N policy for the capital market to strengthen the supervision of the domestic capital market.The introduction of these regulatory policies is conducive to resolving hidden risks and relieving societal pressure,while also promoting the healthy d

79、evelopment of related industries.However,the decision-making of enterprises has been affected to some degree due to uncertainties in the timing and strength of enforcement of these regulatory policies during the implementation process.章節一短期挑戰章節三章節四章節五章節六章節七章節八章節十Short-term expectationShortShort-term

80、 term challengechallengeShort-term strategyMid-term expectationMid-term challengeMid-term strategyExpanding overseas AIESG附錄Appendix章節九Digital intelligence2024 China CEO Outlook2024 China CEO Outlook1010 2024 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limi

81、ted liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.5%7%8

82、%14%17%20%31%31%46%49%52%0%20%40%60%Fulfilling our ESG strategy and commitmentsRisk and complianceRely on external resources,such as M&A to achieve growthUnderstand and implement emerging technologiesAttract and retain the necessary talentDigital transformation of the entire companyBusiness model tr

83、ansformationExpand new marketsOptimize products and services,enhance customer valueDevelop research and innovation to achieve sustainable growthControl costs and improve productivityReducing costs and raising efficiency are regarded as short-term operational prioritiesIn the face of the slowdown in

84、macroeconomic growth and intensified market competition,business leaders operational priorities have shifted to cost control,R&D and innovation,and product and service optimisation,with a view on gaining more market share.Specifically,in the short term,enterprises aim to manage and control operating

85、 costs by reducing production costs and new investments and improving production efficiency.Our survey shows that 51.8%of CEOs are most concerned about controlling production costs over the next year,including raw material and labour costs(Figure 5).Since May 2024,the purchase price index of main ra

86、w materials for manufacturing enterprises has continued to decline.In July,the index dropped below the 50-point mark,reflecting efforts by certain enterprises to squeeze costs.In addition,according to the China Business Conditions Index(BCI)published by the Cheung Kong Graduate School of Business,th

87、e index for prospective labour costs has continued to fall since 2022,reaching 58.6 in September 2024,about one-third lower than the peak of 86.7 in August 2021.According to our survey,26%of the surveyed CEOs say they have plans to reduce headcounts this year(Figure 6).Figure 5Figure 5Top operationa

88、l priorities of Chinese CEOs over the next year,%Top operational priorities of Chinese CEOs over the next year,%Source:KPMG 2024 China CEO Outlook章節一短期挑戰章節三章節四章節五章節六章節七章節八章節十附錄Short-term expectationShort-term challengeShortShort-term term strategystrategyMid-term expectationMid-term challengeMid-ter

89、m strategyAIESGAppendixExpanding overseas 章節九Digital intelligence 2024 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG g

90、lobal organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.11112024 China CEO Outlook2024 China CEO Outlook10%5%6%34%6%9%18%5%6%15%32%20%10%11%0%10%20%30%40%Decrease by more than 20%Decrease by 10%-20%D

91、ecrease by less than 10%Basically flatIncrease by less than 10%Increase by 10%-20%Increase by more than 20%Total number of employeesinvestment planFigure 6Figure 6Corporate Corporate i investmentnvestment plan and total headcount over the next year,%plan and total headcount over the next year,%Sourc

92、e:KPMG 2024 China CEO OutlookIn addition to reducing existing costs,business leaders also have plans to reduce the scale of their new investments,with 21%of the surveyed CEOs intending to do so within a year.For example,due to the current decline in housing demand in China,the liquidity of real esta

93、te enterprises is relatively tight,affecting their investment activities.Since April 2022,Chinas real estate investments have been declining for 30 consecutive months.As the real estate industry chain spans multiple sectors,the slowdown in real estate investment has also affected investment in machi

94、nery,household appliances,and other related industries.It is worth noting that,despite feeling more pressure in respect of the survival of their enterprises,the surveyed CEOs still maintain a positive attitude towards R&D and innovation.49%of them consider the development of new quality productive f

95、orces through R&D and innovation to be their top operational priority for achieving their growth objectives.According to data from the Organization for Economic Co-operation and Development(OECD),from 2012 to 2021,the basic research funds of Chinese enterprises grew from USD 200 million annually to

96、USD 3.98 billion,an increase of nearly 20 times in just 10 years.However,the basic research funds of Chinese enterprises as a percentage of their overall research expenditure are still insufficient.In 2021,the basic research funds of Chinese enterprises as a share of their total R&D expenditure was

97、only 0.8%;meanwhile,the basic research funds of American enterprises amounted to USD 41.71 billion,accounting for 6.7%of their total R&D expenditure;and in Japan,the basic research expenditure of enterprises reached USD 10.48 billion,accounting for 7.5%of their total R&D expenditure.章節一短期挑戰章節三章節四章節五

98、章節六章節七章節八章節十Short-term expectationShort-term challengeShortShort-term term strategystrategyMid-term expectationMid-term challengeMid-term strategyExpanding overseas AIESG附錄Appendix章節九Digital intelligence2024 China CEO Outlook2024 China CEO Outlook1212 2024 KPMG Huazhen LLP,a Peoples Republic of Chin

99、a partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English compan

100、y limited by guarantee.All rights reserved.Compared with other major innovative powers in the world,there is still much room for improvement in the basic research investment of Chinese enterprises.The 20th National Congress of the Communist Party of China clearly pointed out that the country should

101、strengthen basic research,encourage originality and uphold freedom in exploration,while also strengthening the dominant position of enterprises in technological innovation,and enabling technological backbone enterprises to lead and support technological innovation.In recent years,the government has

102、also increased policy support for business enterprises R&D investment.For example,in September 2022,the Ministry of Finance provided tax incentives for business enterprises investments in basic research.Amid intensified external competition and policy support,enterprises are increasingly eager to en

103、gage in R&D and innovation activities,which should further accelerate the development of new quality productive forces.Finally,in order to effectively respond to intensifying domestic competition,45.6%of business leaders are choosing to optimise products and services and improve output quality,with

104、the aim of gaining market share.Currently,enterprises are optimising products and services mainly through three approaches.First,products and services are being actively transformed through customised production and service-oriented processes.Customised production emphasises engaging in production b

105、ased on the specific needs of the market to achieve a high degree of personalisation and differentiation of products;service-oriented transformation means that the provision of product-related value-added services such as lifecycle management and after-sales services has become increasingly importan

106、t.Second,enterprises are actively using emerging technologies such as AI and cloud computing to empower products and improve their technical capabilities.In recent years,the upgrading and iteration of AI technology has accelerated,and the continuous development of this technology has expanded the sc

107、ope of intelligent manufacturing,with people leveraging AI technology to excavate market needs for more products.Third,green and low-carbon transformation has become a key task for the development of intelligent manufacturing.At the policy level,China has proposed the task of striving to increase th

108、e production value of green factories so that they account for more than 40%of the total production value of the manufacturing industry by 2030.To reach this goal,manufacturers will need to actively embed green concepts and green technologies into their products to promote green and low-carbon susta

109、inable development.章節一短期挑戰章節三章節四章節五章節六章節七章節八章節十附錄Short-term expectationShort-term challengeShortShort-term term strategystrategyMid-term expectationMid-term challengeMid-term strategyAIESGAppendixExpanding overseas 章節九Digital intelligence 2024 KPMG Huazhen LLP,a Peoples Republic of China partnership

110、,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by

111、guarantee.All rights reserved.13132024 China CEO Outlook2024 China CEO OutlookProspects for medium-term economic growth rebound with the emergence of new growth momentumWhile the economy faces certain risks and challenges in the short term,as the impact of the contraction of growth momentum from tra

112、ditional sectors fades,prospects for medium and long-term economic growth are trending upwards.Our survey shows that 71%of surveyed CEOs are confident about Chinas economic growth over the next three years,higher than the confidence seen in 2023.In late September 2024,in order to address new economi

113、c challenges,China further strengthened its macro policies.With the dissolution of existing local government debts and the interest rate cut for existing housing loans,consumption and government investment should again become major sources of demand going forward,which may support for medium and lon

114、g-term economic growth alongside the continuous development of new quality productive forces.In addition,as the world gradually enters an interest rate cut cycle,the constraints of monetary policies on the economy will ease,and global economic growth in the medium and long term should stabilise and

115、recover from its current low point.According to the IMFs forecast,global economic growth in 2025 will be the same as in 2024:3.2%.In 2024,the surveyed CEOs confidence in the global economys medium and long-term growth prospects markedly improved,with 71%expressing confidence compared to 60%in 2023(F

116、igure 7).Source:KPMG 2024 Global CEO OutlookFigure 7Figure 7Chinese CEOs confidence in economic growth over the next three years,Chinese CEOs confidence in economic growth over the next three years,%74%71%77%67%79%80%67%71%54%76%48%67%57%77%60%71%0%10%20%30%40%50%60%70%80%90%201720182019202020212022

117、20232024China EconomyGlobal Economy章節一短期挑戰章節三章節四章節五章節六章節七章節八章節十Short-term expectationShort-term challengeShort-term strategyMidMid-term term expectationexpectationMid-term challengeMid-term strategyExpanding overseas AIESG附錄Appendix章節九Digital intelligence2024 China CEO Outlook2024 China CEO Outlook1

118、414 2024 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with

119、 KPMG International Limited,a private English company limited by guarantee.All rights reserved.61%of surveyed CEOs expect their earnings to grow at 2.5%or more over the next three years,higher than the global average.Chinese CEOs optimism about medium and long-term economic growth is also reflected

120、in their earnings outlook.61%of surveyed CEOs expect their earnings to grow at 2.5%or more over the next three years,higher than the global average(Figure 8).From a historical perspective,this years outlook for earnings over the next three years is a significant improvement compared to 2023,and just

121、 below the historical highs seen in 2017 and 2022(Figure 9).The improvement in the earnings outlook is in part due to the gradual clearance of excess production capacity.From 2015 to 2017,China cut production capacity for energy-intensive industries,and these efforts were accompanied by a restoratio

122、n in earnings capacity.For example,although the number of coal mines in China decreased by 1,072 in 2017,the profits of coal companies above the designated size increased by 290.5%year-on-year.Currently,certain industries in China are in the process of clearing production capacity.As this excess cap

123、acity is gradually cleared,the medium and long-term earnings outlook will improve.The other contributor to the improvement in the earnings outlook is policy support.For example,in the middle of 2022,the government issued the Package of Policies and Measures for Effectively Stabilising the Economy,wh

124、ich proposed 33 specific measures across six areas,including fiscal,monetary,consumption and investment,to drive the recovery of enterprises confidence.At the beginning of 2024,the two sessions of the National Peoples Congress(NPC)and the Chinese Peoples Political Consultative Conference(CPPCC)appro

125、ved the issuance of RMB 1 trillion in ultra-long special treasury bonds,and these funds will be used to support investment in the“implementation of major national strategies”and“security capacity-building in key areas,”while supporting consumption and investment in equipment upgrading.With the conti

126、nued strengthening of demand-side policies,the earnings outlook of enterprises has been largely restored.Source:KPMG 2024 Global CEO OutlookFigure 8Figure 8CEOsCEOs whowho areare confidentconfident aboutabout achievingachieving earningsearnings growthgrowth ofof 2 2.5 5%oror aboveabove overover thet

127、he nextnext threethree years,years,%54%61%章節一短期挑戰章節三章節四章節五章節六章節七章節八章節十附錄Short-term expectationShort-term challengeShort-term strategyMidMid-term term expectationexpectationMid-term challengeMid-term strategyAIESGAppendixExpanding overseas 章節九Digital intelligence 2024 KPMG Huazhen LLP,a Peoples Repub

128、lic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private Eng

129、lish company limited by guarantee.All rights reserved.15152024 China CEO Outlook2024 China CEO OutlookFigure 9Figure 9Source:KPMG 2024 China CEO OutlookNote:2017-2020 shows the proportion of CEOs who were confident about achieving earnings growth of 2%or above.Chinese CEOs who are confident about ac

130、hieving earnings growth of 2.5%Chinese CEOs who are confident about achieving earnings growth of 2.5%or above over the next three years,2017or above over the next three years,2017-2024,%2024,%66%39%42%39%46%69%39%61%0%10%20%30%40%50%60%70%80%20172018201920202021202220232024章節一短期挑戰章節三章節四章節五章節六章節七章節八章

131、節十Short-term expectationShort-term challengeShort-term strategyMidMid-term term expectationexpectationMid-term challengeMid-term strategyExpanding overseas AIESG附錄Appendix章節九Digital intelligence2024 China CEO Outlook2024 China CEO Outlook1616 2024 KPMG Huazhen LLP,a Peoples Republic of China partner

132、ship,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited

133、 by guarantee.All rights reserved.Supply chain disruptions,geopolitical uncertainty and technological changes will become the main challenges in the medium termIn the short term,challenges faced by enterprises mainly include intense domestic competition and changes in regulatory policies,while in th

134、e medium and longer term,challenges are more related to the external environment.The surveyed Chinese CEOs say that supply chain issues(22%),geopolitical risks(15%)and emerging/disruptive technology(14%)are the top threats to their enterprises growth over the next three years,significantly higher th

135、an the global average(Figure 10).In particular,the proportion of Chinese CEOs concerned about the supply chain has reached the highest level since the COVID-19 outbreak in 2020(Figure 11).Source:KPMG 2024 Global CEO OutlookFigure 10Figure 10Threats to enterprises growth over the next three years,%Th

136、reats to enterprises growth over the next three years,%China CEO Global CEOSupply chainGeopolitics and political uncertaintyEmerging/disruptive technologyOperational issuesRegulatory concernsCyber securityReputational risk,including misalignment with customer/public sentimentEnvironmental/climate ch

137、angeEconomic decoupling between countries and the resulting pricing pressuresInterest ratesTalentTax0%5%10%15%20%25%22%14%15%12%14%11%9%14%8%8%13%7%7%6%8%4%5%3%4%2%2%1%0%章節一短期挑戰章節三章節四章節五章節六章節七章節八章節十附錄Short-term expectationShort-term challengeShort-term strategyMid-term expectationMidMid-term term ch

138、allengechallengeMid-term strategyAIESGAppendixExpanding overseas 章節九Digital intelligence 2024 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are mem

139、ber firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.17172024 China CEO Outlook2024 China CEO Outlook0246810122021202220232024Supply chainGeopolitics and political uncertain

140、tyEmerging/disruptive technologyFigure 11Figure 11Chinese CEOs ranking of threats to organisations growth over the next Chinese CEOs ranking of threats to organisations growth over the next three years,2021three years,2021-20242024Source:KPMG 2024 Global CEO OutlookFrom a supply chain perspective,en

141、terprises are mainly concerned about three areas.First,global industry chains are being reshaped,and domestic production and manufacturing facilities are relocating overseas.Since 2018,as part of the tide of rising trade protectionism,the United States(US)has been trying to shorten the geographic di

142、stance among the links in its industry chains through nearshoring,friendshoring,and other means.Globalised industry chains have shifted nearby,with some of Chinas import share gradually being transited through Mexico and Vietnam.Other countries have followed suit and relocated parts of their industr

143、y chains to Southeast Asia and other emerging markets to mitigate pressure from geopolitical tensions,among other considerations.Since the second quarter of 2024,the US,Canada,the European Union(EU),Mexico,and other economies have successively imposed additional tariffs on some of Chinas industrial

144、products,which has weakened Chinas price advantages and may accelerate the relocation of production chains.These relocations will significantly reduce the demand for products manufactured by relevant domestic foreign trade enterprises if they fail to open up overseas markets in a relatively short pe

145、riod of time.Second,imports of core technologies and key equipment have been restricted.To fend off risks in key areas,from October 2018,the US began to adopt a“small yard,high fence”strategy against China,attempting to comprehensively block the countrys import of cutting-edge technologies,especiall

146、y integrated circuits,so as to suppress the development of Chinas high-tech industries.According to the Critical and Emerging Technologies List Update released by the National Science and Technology Council in February 2024,the scope of the“small yard”covers 19 major technologies,including advanced

147、computing and engineering materials,among others.Technical bottlenecks that exist in the above fields may restrict the next phase of the construction and development of Chinas new quality productive forces.章節一短期挑戰章節三章節四章節五章節六章節七章節八章節十Short-term expectationShort-term challengeShort-term strategyMid-t

148、erm expectationMidMid-term term challengechallengeMid-term strategyExpanding overseas AIESG附錄Appendix章節九Digital intelligence2024 China CEO Outlook2024 China CEO Outlook1818 2024 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chines

149、e Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Third,since 2022,with the outbreak o

150、f conflicts in Europe and the Middle East,global geopolitical risks have risen sharply,leading to violent fluctuations in commodity prices and potential supply interruptions of key strategic resources such as energy,grain,and key minerals,which threatens the production and operations of enterprises.

151、Geopolitical tensions not only disrupt supply chains,but also exert an adverse impact on national foreign exchange reserves,the overseas assets of enterprises and the security of the global cross-border settlement system.For example,sanctions have been routinely used by many countries as a non-milit

152、ary weapon since 2022.As of 1 May 2024,the US State Department and Treasury Department had imposed sanctions on more than 280 entities and individuals.Specifically,22 entities and individuals in the Chinese Mainland and Hong Kong SAR have been added to the Specially Designated Nationals and Blocked

153、Persons list(SDN List),with any assets they hold under US jurisdiction frozen,which may hamper the further development of these organisations.As for emerging technologies,in addition to worries about technological blockades imposed by developed economies on certain domestic industries,rapidly evolvi

154、ng technologies such as AI are also bringing challenges to enterprises.In recent years,the commercialisation of AI has been significantly accelerated amid the evolution of AI technologies and the expansion of application scenarios.At present,generative AI is being used to expand market demand and im

155、prove production efficiency.It is clear that AI is an increasingly important tool for enterprises that aim to reduce costs and boost efficiency.As the technology matures and its application scenarios expand,enterprises that fail to apply AI in their manufacturing and operating activities will find i

156、t hard to maintain market competitiveness and achieve stable development.章節一短期挑戰章節三章節四章節五章節六章節七章節八章節十附錄Short-term expectationShort-term challengeShort-term strategyMid-term expectationMidMid-term term challengechallengeMid-term strategyAIESGAppendixExpanding overseas 章節九Digital intelligence 2024 KPM

157、G Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG Intern

158、ational Limited,a private English company limited by guarantee.All rights reserved.19192024 China CEO Outlook2024 China CEO OutlookMedium-term business strategies focus on global deployment,technological innovation,and mergers and acquisitionsDue to rising supply chain risks,enterprises are prioriti

159、sing cost management and competitive pricing when devising their medium and long-term business strategies.17%of Chinese CEOs surveyed say that controlling manufacturing costs will be their top operational priority over the next three years,which is higher than the global average of 13%(Figure 12).Go

160、ing forward,Chinas population is expected to continue ageing,and labour and land costs will rise.As a result,expanding overseas is becoming an attractive option for enterprises that aim to control costs.To address challenges around technological reform,16%of CEOs say they will attach great importanc

161、e to the application of generative AI over the next three years.In 2023,15%of Chinese enterprises adopted generative AI.However,according to McKinseys Global AI Survey report,only 9%of them have achieved more than 10%revenue growth through AI enablement,much lower than the figure of 19%reported in l

162、eading countries.In other words,there is still ample space for Chinese enterprises to use AI to increase revenue and drive profits.Going forward,CEOs will actively use generative AI to improve their enterprises profitability and market competitiveness.Digitalisation is also being prioritised as the

163、bedrock of AI development.Through digital transformation,enterprises can improve data connectivity,optimise processes,and raise decision-making efficiency,thus laying a solid foundation for AI applications.14%of CEOs say that a higher level of digitalisation is their top operational priority to achi

164、eve their revenue objectives.章節一短期挑戰章節三章節四章節五章節六章節七章節八章節十Short-term expectationShort-term challengeShort-term strategyMid-term expectationMid-term challengeMidMid-term term strategystrategyExpanding overseas AIESG附錄Appendix章節九Digital intelligence2024 China CEO Outlook2024 China CEO Outlook2020 2024

165、KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG Int

166、ernational Limited,a private English company limited by guarantee.All rights reserved.8%7%6%13%15%10%18%11%13%5%6%6%10%13%14%14%16%17%0%5%10%15%20%Organic growthImproving the customer experienceReconfiguring the supply chainExecution of ESG initiativesEmployee value proposition to attract and retain

167、 the top talentInorganic growthAdvancing digitization and connectivity across the businessUnderstanding and implementing generative AIInflation proofing capital and input costsChina CEOGlobal CEOFigure 12Figure 12Top five operational priorities to achieve growth objectives over the next Top five ope

168、rational priorities to achieve growth objectives over the next three years,%three years,%Source:KPMG 2024 Global CEO OutlookIt is worth noting that 14%of Chinese CEOs surveyed regard inorganic growth strategies as their operational priority,which is higher than the average among global CEOs.In addit

169、ion,over the next three years,50%of Chinese CEOs may seek to merge with or acquire businesses that will have a significant impact on their companys operations,higher than that of global CEOs,and the highest among Chinese CEOs since 2020(Figure 13).The main factor driving this rise is that,in recent

170、years,Chinas state-owned enterprises have taken further measures to strengthen their market value management,and they are focussing more on merger and restructuring opportunities.章節一短期挑戰章節三章節四章節五章節六章節七章節八章節九章節十附錄Short-term expectationShort-term challengeShort-term strategyMid-term expectationMid-ter

171、m challengeMidMid-term term strategystrategyAIDigital intelligenceESGAppendixExpanding overseas 2024 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,

172、are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.21212024 China CEO Outlook2024 China CEO Outlook41%44%40%47%50%32%50%47%51%45%0%10%20%30%40%50%60%202020212022202

173、32024China CEOGlobal CEOEarlier in 2024,the State-owned Assets Supervision and Administration Commission(SASAC)announced that it would further explore the incorporation of market value management into the performance assessment for leaders of central enterprises.Afterwards,the CSRC announced that it

174、 would promote the implementation of this practice.Mergers and acquisitions and restructuring are essential tools for listed companies to optimise resource deployment,refine business structures and manage market value in a sound manner.As of mid-September,147 companies(de-duplicated)had disclosed th

175、e latest progress of their major restructuring projects,exceeding the totals in 2022 and 2023,and state-owned enterprises(including local state-owned enterprises and central enterprises)accounted for the largest share of the total at 44%.On 24 September,the CSRC stated that it would solicit public o

176、pinions on the newly drafted Regulatory Guidelines for Listed Companies No.10-Market Value Management(Exposure Draft)(the Guidelines).The Guidelines clearly state that listed companies should,with a focus on their main business,improve their operational efficiency and profitability,and promote their

177、 investment value using compliant mergers and acquisitions and equity incentives that reflect their actual circumstances.In light of this policy support,more state-owned enterprises may make mergers and acquisitions a strategic priority for future growth.Figure 13Figure 13Percentage of Chinese CEOs

178、seeking for mergers and acquisitions projects Percentage of Chinese CEOs seeking for mergers and acquisitions projects that have a significant impact on their organisations over the next three that have a significant impact on their organisations over the next three years,%years,%Source:KPMG 2024 Gl

179、obal CEO Outlook章節一短期挑戰章節三章節四章節五章節六章節七章節八章節十Short-term expectationShort-term challengeShort-term strategyMid-term expectationMid-term challengeMidMid-term term strategystrategyExpanding overseas AIESG附錄Appendix章節九Digital intelligence2024 China CEO Outlook2024 China CEO Outlook2222 2024 KPMG Huazhen

180、LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Li

181、mited,a private English company limited by guarantee.All rights reserved.Expanding overseas is an imperativeAccording to our survey,going overseas has become an imperative for Chinese enterprises seeking further development,whether for the short-term purpose of alleviating competitive pressure by ac

182、cessing new markets,or to guard against exposure to supply chain disruptions and geopolitical tensions in the medium and long-term.Over the past two decades,Chinese enterprises have expanded overseas in two waves.The first one was sparked by the acceleration of global trade and globalisation after 2

183、008,when Chinese enterprises began opening up to overseas markets.The global share of Chinese enterprises outward FDI stock rose from 1.2%to 5.5%in 2017,with household appliances and other dominant industries taking the lead.As certain domestic industries matured and labour costs rose,and amid press

184、ure from rising protectionism,Chinese enterprises started the second round of expansion overseas in 2018,which mainly involved the establishment of manufacturing facilities abroad.From 2017 to 2023,the global share of Chinese enterprises outward FDI stock rose from 5.5%to 6.6%.According to our surve

185、y,35%of Chinese CEOs say their enterprises have already expanded overseas and are currently engaging in localisation efforts,and 29%are planning to go global and are currently assessing markets and risks.Meanwhile,21%of Chinese CEOs have not made plans to go global but are still paying attention to

186、overseas markets(Figure 14).67%of surveyed Chinese CEOs regard strategic resource deployment as a significant factor driving enterprises to go global(Figure 15).By relocating certain manufacturing facilities abroad,such as in Southeast Asia and Latin America,enterprises can hedge supply chain risks

187、from the rise in global trade protectionism.41%of Chinese CEOs say that overseas branding is one of the main factors driving enterprises to go global,mainly in relation to the rising global demand for new energy and online consumer products following the pandemic,which relevant domestic enterprises

188、have seized as an opportunity to engage in overseas branding.For example,as consumer shopping habits shifted after the pandemic,certain domestic cross-border e-commerce platforms seized the opportunity to rapidly expand internationally,gaining large market shares in Europe and the US.In addition,33%

189、of the CEOs identify the sluggish domestic market as a significant factor driving their expansion overseas.In 2024,some industries have experienced excess capacity due to inadequate effective demand.As a countermeasure,they have had to actively explore overseas markets.According to the semi-annual r

190、eports of listed enterprises in 2024,the proportion of their overseas revenue has reached 11%,1.4 percentage points higher than that for the same period in 2023.章節一短期挑戰章節三章節四章節五章節六章節七章節八章節十附錄Short-term expectationShort-term challengeShort-term strategyMid-term expectationMid-term challengeMid-term s

191、trategyAIESGAppendixExpanding Expanding overseas overseas 章節九Digital intelligence 2024 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member fir

192、ms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.23232024 China CEO Outlook2024 China CEO OutlookHave already gone abroad,under localized operation deployment35%Plan to go abro

193、ad,still evaluating the market and risks29%No plan at present,but keep an eye on overseas market21%Not yet considered,focus on China market15%14%14%16%29%33%41%67%0%20%40%60%80%Access to technology and talent resourcesSupply chain supportingGovernment supports Diversified demand on supply chain Slow

194、 growth in the domestic market Overseas branding buildDeployment on resourcesFigure 14Figure 14Chinese enterprises choices for going overseas,%Chinese enterprises choices for going overseas,%Source:KPMG 2024 China CEO OutlookFigure 15Figure 15Factors driving Chinese enterprises to go global,%Factors

195、 driving Chinese enterprises to go global,%Source:KPMG 2024 China CEO OutlookSince 2018,Chinas outward FDI growth has mainly been driven by two industriesthe manufacturing industry and the wholesale and retail industrywith their proportion of FDI stock in 2023 reaching 9.6%and 4.3%,respectively,whic

196、h was 1.4 and 1.3 percentage points higher than in 2018.According to the survey,69%of the Chinese CEOs of technology enterprises who were interviewed have expanded overseas or have plans to do so,while 67%of CEOs in the consumer goods and retail sector and 64%of CEOs in industrial manufacturing do.(

197、Figure 16).章節一短期挑戰章節三章節四章節五章節六章節七章節八章節十Short-term expectationShort-term challengeShort-term strategyMid-term expectationMid-term challengeMid-term strategyExpanding Expanding overseas overseas AIESG附錄Appendix章節九Digital intelligence2024 China CEO Outlook2024 China CEO Outlook2424 2024 KPMG Huazhen LL

198、P,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limi

199、ted,a private English company limited by guarantee.All rights reserved.36%27%18%18%Industrial Industrial manufacturingmanufacturingHave already gone abroad,under localized operation deploymentPlan to go abroad,still evaluating the market and risksNo plan at present,but keep an eye on overseas market

200、Not yet considered,focus on China market44%25%19%12%TechnologyTechnology47%20%20%13%Consumer goods Consumer goods and retailand retailFigure 16Figure 16Current overseas expansion status of major industries,%Current overseas expansion status of major industries,%Source:KPMG 2024 China CEO OutlookCros

201、s-border e-commerce is developing rapidly and driving increasing investment in the wholesale and retail sector.As overseas shopping habits shifted after the pandemic,certain experienced domestic e-commerce platforms began to expand into overseas markets,and some emerging cross-border e-commerce plat

202、forms also developed rapidly.Over the past five years,the scale of Chinas cross-border e-commerce trade has grown more than tenfold.According to local preliminary statistics,there are more than 120,000 domestic cross-border e-commerce entities,over 1,000 cross-border e-commerce industrial parks,and

203、over 2,500 overseas warehouses that cover a total area of more than 30 million square metres.In the first half of 2024,Chinas cross-border e-commerce trade stood at RMB 1.22 trillion,up 10.5%year-on-year,and 4.4 percentage points higher than the growth of Chinas overall foreign trade in the same per

204、iod.According to the semi-annual reports of listed enterprises for 2024,overseas revenue from cross-border e-commerce platforms as a share of the total overseas revenue of the Internet and wholesale and retail industries increased by 9 percentage points to 34.5%compared with the same period in 2023.

205、The proportion of outward FDI in Chinas manufacturing industry has continued to climb for four consecutive years.In 2023,outward FDI in Chinas manufacturing industry reached USD 27.34 billion,accounting for 15.4%of Chinas total outward FDI,reflecting an increase of 3.2 percentage points over 2018.Ac

206、cording to the financials of listed companies in recent years,within the overseas revenue of the manufacturing sector,the share accounted for by the information technology segment(which includes consumer electronics and semiconductors)and the consumer discretionary segment(which includes automobiles

207、)rose significantly from 2018 to 2023.章節一短期挑戰章節三章節四章節五章節六章節七章節八章節十附錄Short-term expectationShort-term challengeShort-term strategyMid-term expectationMid-term challengeMid-term strategyAIESGAppendixExpanding Expanding overseas overseas 章節九Digital intelligence 2024 KPMG Huazhen LLP,a Peoples Republic

208、of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English

209、 company limited by guarantee.All rights reserved.25252024 China CEO Outlook2024 China CEO OutlookFigure 17Figure 176%6%6%8%10%18%22%31%47%63%0%10%20%30%40%50%60%70%South AmericaAustraliaAfricaEastern EuropeNorthern EuropeJapan and South KoreaMiddle EastWestern EuropeUnited StatesSoutheast AsiaThis

210、growth in the manufacturing industrys outward FDI has been driven by multiple factors.First,from 2008,the pace of the global green transformation accelerated,driving the rapid expansion of demand for clean energy products;and Chinas early planning in the photovoltaic,lithium battery and new energy v

211、ehicle fields had already laid the groundwork for domestic enterprises to expand capacity overseas.Since May 2024,the US,the EU,Canada,and other economies have successively imposed tariffs on Chinas exports of new energy vehicles,which is expected to hasten the overseas expansion of Chinas new energ

212、y vehicle industry chain.Second,due to the expansionary fiscal policies enacted in Europe and the US during the pandemic,the demand for household consumer durable goods in developed countries expanded rapidly.Meanwhile,since 2020,to mitigate risks from the tariffs imposed by the US on most of Chinas

213、 mechanical and electrical products,the countrys semiconductor and consumer electronics industries,among others,began to accelerate their overseas expansions.According to semi-annual reports for 2024,the global semiconductor industry is experiencing a recovery this year.In the first half of 2024,the

214、 overseas revenue of the semiconductor and consumer electronics industries has maintained strong growth momentum;and overseas revenue as a share of the information technology industrys total revenue stood at about 30%,making the industry a current and future leader in overseas expansion.According to

215、 our survey,63%of the surveyed CEOs plan to explore new markets in Southeast Asia,which is more than the share of those looking to explore US markets(47%),markets in Western Europe(31%)and other traditional overseas markets.In addition,the surveyed CEOs also show a degree of interest in emerging mar

216、kets such as the Middle East(22%)and Africa(6%)(Figure 17).Major overseas markets considered by Chinese enterprises,%Major overseas markets considered by Chinese enterprises,%Source:KPMG 2024 China CEO Outlook章節一短期挑戰章節三章節四章節五章節六章節七章節八章節十Short-term expectationShort-term challengeShort-term strategyMi

217、d-term expectationMid-term challengeMid-term strategyExpanding Expanding overseas overseas AIESG附錄Appendix章節九Digital intelligence2024 China CEO Outlook2024 China CEO Outlook2626 2024 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in C

218、hinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.From 2008 to 2018,the overseas

219、markets that Chinese enterprises chose to pursue were mainly developed economies such as Europe and the US.According to FDI stock statistics,the US(3.8%),Singapore(2.5%)and Australia(1.9%)had the largest shares of Chinas outward FDI in 2018(not including Hong Kong SAR).Back then,Chinese enterprises

220、went overseas mainly to promote advantageous products to overseas markets.With higher per capita income and stronger purchasing power,developed economies were the main overseas markets for domestic products.Since 2018,against the backdrop of rising global trade protectionism and increasing domestic

221、labour costs,emerging markets have become attractive destinations for domestic investments due to their abundant and low-cost labour and well-developed light manufacturing capabilities.During the period from 2018 to 2023,the proportion of Chinas investments in the US,the EU,Canada,Australia,and othe

222、r developed economies declined marginally,while the proportion of Chinas outward FDI stock in the Association of Southeast Asian Nations(ASEAN)region rose 0.7 percentage points,making ASEAN the most popular region for enterprises overseas expansion during the period.As for the methods of overseas ex

223、pansion,the survey shows that more than half of the interviewed enterprises choose to cooperate with local overseas agents,while 29%of them completed the entire overseas expansion process on their own(Figure 18).During the first wave of overseas expansion that began in 2008,Chinese enterprises mainl

224、y engaged in cross-border mergers and acquisitions to obtain the sales channels and supply chains of acquirees,and they would then use the acquirees product strength and brand influence to gain market share overseas.For example,during that time,enterprises in the automobile and household appliance i

225、ndustries,among others,opened up market segments in Europe and the US by acquiring high-end foreign brands.Since 2018,many countries enacted regulations to raise the threshold for cross-border mergers and acquisitions.For example,in early 2019,Germany introduced the toughest foreign investment revie

226、w act in history,lowering the review“red line”for non-EU investors from 25%to 10%in infrastructure and core technology fields that are critical to national security.Meanwhile,Southeast Asia,Latin America,and Africa began to demonstrate advantages in labour,resources,and other production factors whil

227、e Chinas domestic market exhibited slower demand,in sharp contrast to the high consumption potential of overseas markets.Since then,an increasing number of enterprises have chosen to go global through greenfield investments,with a view to reducing production costs and exploring overseas markets in t

228、he long term.章節一短期挑戰章節三章節四章節五章節六章節七章節八章節十附錄Short-term expectationShort-term challengeShort-term strategyMid-term expectationMid-term challengeMid-term strategyAIESGAppendixExpanding Expanding overseas overseas 章節九Digital intelligence 2024 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG

229、 Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guara

230、ntee.All rights reserved.27272024 China CEO Outlook2024 China CEO Outlook2%4%6%8%29%51%0%20%40%60%OtherMerge and acquisitionJoint venture Strategic investmentGreenfield investmentCooperation with local underwriting agentsRecently,it has become clear that greenfield investments are the main approach

231、being used by Chinese enterprises to go global.However,newly built greenfield sole proprietorship projects still face many risks and challenges,such as higher initial investment costs and uncertainties in adapting to the business environment of the host country.Therefore,Chinese enterprises are more

232、 inclined to invest in greenfield projects by establishing joint ventures with local partners,which enables them to use the marketing,sales,and network resources of local channel providers,dealers,and government-related platforms,while also lowering risks by reducing the capital and time consumed by

233、 direct investments.With this approach,they are able to effectively share resources,risks,and benefits in a win-win relationship.Figure 18Figure 18Pathways adopted by Chinese enterprises for expanding overseas,%Pathways adopted by Chinese enterprises for expanding overseas,%Source:KPMG 2024 China CE

234、O Outlook章節一短期挑戰章節三章節四章節五章節六章節七章節八章節十Short-term expectationShort-term challengeShort-term strategyMid-term expectationMid-term challengeMid-term strategyExpanding Expanding overseas overseas AIESG附錄Appendix章節九Digital intelligence2024 China CEO Outlook2024 China CEO Outlook2828 2024 KPMG Huazhen LLP,

235、a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limite

236、d,a private English company limited by guarantee.All rights reserved.2%4%8%10%16%20%20%24%24%24%25%27%35%43%0%5%10%15%20%25%30%35%40%45%50%Global business networkUnable to meet the diversified demands of consumersLack of adequate financial supportSupply chain management and logistical challengesLack

237、 of overall planning for going abroadLocalized customization of products and servicesEstablishment of sales channelsMarketing resources and activitiesGeopolitical risksLocalized compliance issueLocal cultural differencesTalent management and international team buildingBrand building and recognitionC

238、hoose the proper local partnerWhen expanding into overseas markets,enterprises face many complex challenges in planning,operations,strategy,and compliance.To bridge cultural gaps and overcome transnational barriers,enterprises often achieve localisation by working with upstream and downstream partne

239、rs in the industry chain to form an ecosystem.The survey results show that the current challenges faced by enterprises going overseas mainly arise in relation to identifying suitable local partners,establishing brand awareness,and managing overseas talent and building teams(Figure 19).Professional s

240、ervice organisations can often provide them with customised solutions for these issues.For example,many CEOs say that professional service organisations can help them develop detailed due diligence and systematic market surveys to gain insight into partners actual operations and the characteristics

241、of target markets,enabling them to achieve localisation by combining production and distribution links and improving supply chain resilience.In addition,CEOs mention that multinational professional service organisations have extensive service experience in the field of talent management and internat

242、ional team building.By refining and cultivating talent echelons that are able to adapt to globalisation strategies,professional service providers can help enterprises carry out full-lifecycle talent management and risk compliance management while supporting their global marketing and business expans

243、ion initiatives.Going forward,transnational professional service organisations will play a vital role throughout the entire overseas expansion process of Chinese enterprises.Figure 19Figure 19Challenges faced by Chinese enterprises when expanding overseas,%Challenges faced by Chinese enterprises whe

244、n expanding overseas,%Source:KPMG 2024 China CEO Outlook章節一短期挑戰章節三章節四章節五章節六章節七章節八章節十附錄Short-term expectationShort-term challengeShort-term strategyMid-term expectationMid-term challengeMid-term strategyAIESGAppendixExpanding Expanding overseas overseas 章節九Digital intelligence 2024 KPMG Huazhen LLP,a

245、 Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited

246、,a private English company limited by guarantee.All rights reserved.29292024 China CEO Outlook2024 China CEO OutlookEmbracing AI has become a realityTechnological improvements in the new generation of AI have dramatically expanded the ways it can be applied in recent years.By empowering industries a

247、nd creating new business models and scenarios,AI has profoundly changed production activities and peoples lifestyles,injecting new momentum into economic and social development.Since 2017,the focus of Chinas AI policies has gradually shifted from the technology itself to its integration and the real

248、 economy,resulting in a boom in the AI industry.According to statistics from the Ministry of Industry and Information Technology(MIIT),at the end of 2023,the scale of Chinas core AI industry reached RMB 578.4 billion,1.6 times higher than the RMB 221.3 billion figure recorded in 2018,demonstrating a

249、 clear trend towards clustering.The number of AI enterprises exceeds 4,500,accounting for about 1/7 of the global total,with the total scale of computational capability ranking second globally.In 2024,the annual Government Work Report proposed for the first time to carry out the AI Plus action plan.

250、AI has become the main force driving a new scientific and technological revolution and the next round of industrial transformation.As a result,embracing AI has become a reality for enterprises.Our survey shows that almost all Chinese CEOs(97%)believe that AI,especially generative AI,will have a tran

251、sformative effect on industries and enterprises,and two-thirds of them believe that transformation will take place within three years(Figure 20).As a frontier area of AI application,the technology industry is likely to take the lead in embracing this transformation,and science and technology enterpr

252、ises are focussing on the development and application of AI technologies in their strategic deployment.They are using AI technologies to improve the intelligence of their products and services,optimise user experience,and explore new business models and market opportunities.In addition,our survey sh

253、ows that private enterprises and small and medium-sized enterprises have responded quickly to seize the opportunities brought by AI.Thanks to their short decision-making chain,flexible market positioning and higher sensitivity to new technologies,small and medium-sized private enterprises are often

254、able to respond to market changes and emerging new technologies by quickly adjusting their strategies and rapidly iterating their products and services.Over the past two years,Chinas small and medium-sized private enterprises have been facing fierce market competition and cost control pressure.They

255、are eager to gain competitive advantages and reduce costs through technological innovation and automated processes,and therefore,they are more willing to try and adopt emerging technologies such as AI.章節一短期挑戰章節三章節四章節五章節六章節七章節八章節十Short-term expectationShort-term challengeShort-term strategyMid-term e

256、xpectationMid-term challengeMid-term strategyExpanding overseas AIAIESG附錄Appendix章節九Digital intelligence2024 China CEO Outlook2024 China CEO Outlook3030 2024 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Ma

257、cau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Less than 3 years,66%More than 3 years,31%Not sure,3%Fig

258、ure 20Figure 20Chinese CEOs expectations about when AI,especially generative AI,will Chinese CEOs expectations about when AI,especially generative AI,will drive significant changes in enterprises and industries,%drive significant changes in enterprises and industries,%Source:KPMG 2024 China CEO Outl

259、ookAlthough AI has a long development history,it is still a new field,and many enterprises are still learning and gaining an understanding of it.As AI efficiency improves and costs fall,we have seen an increasing number of enterprises shift from a wait-and-see approach to taking action,leading to a

260、significant expansion in application.Our survey shows that more than 80%of Chinese CEOs have a clear understanding of how generative AI will disrupt enterprises current business models and create new opportunities,which is higher than the global figure of 76%(Figure 21).In addition,despite softer ec

261、onomic conditions,more than half(57%)of Chinese CEOs still regard generative AI as the top investment priority.According to statistics from the MIIT,in 2023,the proportion of Chinese enterprises adopting generative AI reached 15%,representing a market scale of about RMB 14.4 trillion.Recently,the de

262、velopment of the AI plus service model has accelerated,with industries like technology,finance,health care,and consumer retail pioneering the application of AI.For example,in the financial industry,AI is being used for credit assessments,fraud detection and market trend predictions to improve risk m

263、anagement;in the medical and health industry,AI is being used to perform auxiliary diagnoses and patient monitoring,among other processes;and e-commerce and content platforms are using AI to analyse user behaviour,provide automated customer services and personalised recommendations,and enhance user

264、experience.While the AI plus industry model is still in the preliminary exploratory stage,some cutting-edge application scenarios and concepts have already been developed and put into practice.For example,the Lighthouse Factory”initiative put forward by the World Economic Forum is promoting these ex

265、plorations,showcasing how AI,big data,the Internet of Things,and automation technology can be used to significantly improve production efficiency and promote innovative operating models.57%despite softer economic conditions,of Chinese CEOs still regard generative AI as the top investment priority.章節

266、一短期挑戰章節三章節四章節五章節六章節七章節八章節十附錄Short-term expectationShort-term challengeShort-term strategyMid-term expectationMid-term challengeMid-term strategyAIAIESGAppendixExpanding overseas 章節九Digital intelligence 2024 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limite

267、d liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.3131202

268、4 China CEO Outlook2024 China CEO Outlook76%76%80%81%0%20%40%60%80%100%leadership has a clear view on howgenerative AI will disrupt our currentbusiness models and create newopportunities.Leadership team has clarity on howgenerative AI will benefit ourorganization and create a competitiveadvantage.Ch

269、ina CEOGlobal CEOFigure 21Figure 21How enterprises perceive generative AI according to CEOs,%How enterprises perceive generative AI according to CEOs,%Source:KPMG 2024 Global CEO OutlookAccording to our survey,81%of Chinese CEOs believe that the leadership of their enterprises understands how genera

270、tive AI will benefit the organisation and support the development of competitive advantages(Figure 21).Enterprises expect generative AI to produce a return on investment in five main areas:efficiency improvements,cost savings,service optimisation,innovation,and business growth.AI is an increasingly

271、important tool for enterprises that aim to continuously transform their business and improve their management capabilities.More than three-quarters of Chinese CEOs have high expectations for how AI-enabled enterprises will improve efficiency and productivity(Figure 22).Generative AI can automate rep

272、etitive tasks,which helps improve workflow efficiency,lower error rates,reduce labour costs and optimise resource deployment.These tools also help reduce equipment failures and operating costs through predictive maintenance.Generative AI is particularly useful for scenarios requiring creative output

273、,such as content creation,scheme design and code generation,which helps improve enterprises productivity through enhanced innovation and efficiency.In addition,enterprises can use generative AI to collect and analyse feedback from users,understand user preferences,and provide customised products and

274、 services to meet individual needs.章節一短期挑戰章節三章節四章節五章節六章節七章節八章節十Short-term expectationShort-term challengeShort-term strategyMid-term expectationMid-term challengeMid-term strategyExpanding overseas AIAIESG附錄AppendixLeadership team has clarity on how generative AI will benefit our organization and cr

275、eate a competitive advantageLeadership has a clear view on how generative AI will disrupt our current business models and creative new opportunities 章節九Digital intelligence2024 China CEO Outlook2024 China CEO Outlook3232 2024 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(Chi

276、na)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All righ

277、ts reserved.5%7%10%14%14%23%25%44%45%76%0%20%40%60%80%Risk warning and managementOptimize supply chainEnhance decision-making capacityImprove system/software development efficiencyIncrease companys revenuesEncourage innovationStrengthen communication and connection with customersImprove existing pro

278、ducts and servicesReduce costsImprove efficiency and productivityFigure 22Figure 22Chinese CEOs expectations regarding the benefits of generative AI to Chinese CEOs expectations regarding the benefits of generative AI to enterprises,%enterprises,%Source:KPMG 2024 China CEO OutlookWhen investing in g

279、enerative AI,Chinese CEOs prioritise areas that can bring significant benefits and competitive advantages to their enterprises,such as sales and marketing,information technology,and finance and accounting(Figure 23).For sales and marketing,generative AI can process and analyse massive amounts of dat

280、a to gain insight into consumer behaviour,predict market trends,optimise sales strategies,and improve inquiry-to-sales rates.In addition,generative AI is changing the customer service model.For example,AI chat robots and virtual assistants can provide 24/7 automated customer support,personalised rec

281、ommendations,and instant feedback.In terms of information technology,the application of generative AI in software development,testing,and operations and maintenance will change the way teams work,while also significantly improving productivity,quality,and security.In finance and accounting,generativ

282、e AI is being used to conduct intelligent report generation,automated audit procedures,and intelligent financial analysis.Using these tools,finance and accounting personnel can improve work efficiency and data accuracy while integrating and extensively harvesting financial,operational,and commercial

283、 data to deliver more accurate financial forecasting and decision-making support for companies.章節一短期挑戰章節三章節四章節五章節六章節七章節八章節十附錄Short-term expectationShort-term challengeShort-term strategyMid-term expectationMid-term challengeMid-term strategyAIAIESGAppendixExpanding overseas 章節九Digital intelligence 2

284、024 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG

285、 International Limited,a private English company limited by guarantee.All rights reserved.33332024 China CEO Outlook2024 China CEO Outlook5%6%12%12%15%33%33%58%61%66%0%10%20%30%40%50%60%70%Human resourcesLegal and complianceEngineeringManufacturingRisk managementResearch and developmentStrategyFinan

286、ce and accountingInformation technologySales and marketingFigure 23Figure 23Key functional areas attracting generative AI investments over the next Key functional areas attracting generative AI investments over the next three years,%three years,%Source:KPMG 2024 Global CEO OutlookWe have observed th

287、at while the wide application of AI has brought significant progress and convenience to our work and daily lives,it has also created new problems and challenges.For example,how can AI better assist humans?How can enterprises recruit more AI professionals to meet their needs?Our survey shows that alm

288、ost half of the Chinese CEOs surveyed believe that the biggest challenge for corporate AI operations is the lack of professionals with AI knowledge and skills.The widespread application of AI has triggered a huge demand for AI professionals.According to a report released by the Ministry of Human Res

289、ources and Social Security,the AI talent gap in China exceeds 5 million employees,and the supply and demand ratio is 1:10.Generally,enterprises do not lack experts in singular fieldsthey are in need of high-level professionals with interdisciplinary knowledge and capabilities,which poses great chall

290、enges to recruitment and talent cultivation.To attract and retain talent,enterprises need to implement diversified talent strategies and provide competitive salaries,career development opportunities and innovative work environments.Enterprises can also reach out to universities and research institut

291、ions to jointly incubate the AI professionals that are needed,and launch internship programmes,training opportunities and other projects to cultivate a pool of professionals and lay the foundation for future development.48%of the Chinese CEOssurveyed believe that the biggest challenge for corporate

292、AI operations is the lack of professionals with AI knowledge and skills.章節一短期挑戰章節三章節四章節五章節六章節七章節八章節十Short-term expectationShort-term challengeShort-term strategyMid-term expectationMid-term challengeMid-term strategyExpanding overseas AIAIESG附錄Appendix章節九Digital intelligence2024 China CEO Outlook202

293、4 China CEO Outlook3434 2024 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member f

294、irms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Chinese CEOs believe that integrated generative AI enables enterprises to rethink how they train and develop employees and the skills that are required for entry-level positions.It is w

295、orth noting that only 30%of Chinese CEOs believe that their employees have the skills needed to fully leverage the advantages of generative AI,which is lower than 38%of global CEOs.However,74%of Chinese CEOs believe that their enterprises have the ability to improve their employees generative AI ski

296、lls,higher than 64%of global CEOs.Moreover,due to the ethical and privacy issues that arise in the process of applying AI,enterprises need to provide additional training to their employees that covers ethical,legal and data security issues,among other topics;and they also need to provide training to

297、 improve their personnels technical literacy and ability to identify risks.Figure 24Figure 24Impact of generative AI on the workforce dynamics of organisations,%Impact of generative AI on the workforce dynamics of organisations,%Source:KPMG 2024 Global CEO Outlook80%50%48%30%74%76%57%58%38%64%0%50%1

298、00%Does not affect the number of job positions,but requiresimproving employee skills and reallocating existingresourcesRethink how to train and develop employeesRethink the skills required for entry-level rolesEmployees have the skills to fully leverage the benefits ofgenerative AIEquipped to upskil

299、l employees to fully leverage thebenefits of generative AIChina CEOGlobal CEO章節一短期挑戰章節三章節四章節五章節六章節七章節八章節十附錄Short-term expectationShort-term challengeShort-term strategyMid-term expectationMid-term challengeMid-term strategyAIAIESGAppendixExpanding overseas Does not affect the number of job positions

300、,but requires improving employee skills and reallocating existing resourcesEmployees have the skills to fully leverage the benefits of generative AIEquipped to upskill employees to fully leverage the benefits of generative AI章節九Digital intelligence2024 China CEO Outlook2024 China CEO Outlook3535 202

301、4 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG I

302、nternational Limited,a private English company limited by guarantee.All rights reserved.5%6%22%36%22%10%0%10%20%30%40%No planInitial phaseBasic phaseIntegration phaseOptimization phaseLeading phaseLeveraging the value of data elements to enable digital intelligenceThe digital economy has become one

303、of the fastest growing and most innovative and influential sectors in China,and it is an important engine for cultivating new quality productive forces.In 2023,the scale of Chinas digital economy reached RMB 53.9 trillion,3.8 times higher than in 2012(RMB 11.2 trillion).The vigorous development of t

304、he digital economy is promoting the steady deepening of corporate digitalisation.In recent years,governments at all levels have formulated digital transformation action plans for key industries and sectors,and they have been encouraging enterprises to innovate and accelerate the pace of their digita

305、l transformation by providing financial and technical support,digital financial services,platforms,and training programmes and constructing industrial parks,among other measures.This years survey shows that more than two-thirds of Chinese CEOs have completed digitisation for key business processes,a

306、nd system integration and data connectivity have been achieved to a certain degree(Figure 25).State-owned enterprises and multinational companies usually have more resources and funding,as well as more mature digital transformation strategies,which allow them to carry out digitalisation faster and c

307、omplete their digital transformations sooner.From an industry perspective,the technology and financial sectors inherently rely on data and technology and are at the forefront of digital transformation,especially in respect of cloud computing,big data analysis,mobile payment,online banking,and other

308、fields.Figure 25Figure 25CurrentCurrent digitaldigital transformationtransformation stage,stage,%Source:KPMG 2024 China CEO Outlook章節一短期挑戰章節三章節四章節五章節六章節七章節八章節九章節十Short-term expectationShort-term challengeShort-term strategyMid-term expectationMid-term challengeMid-term strategyExpanding overseas AID

309、 Digital igital intelligenceintelligenceESG附錄Appendix 2024 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organi

310、sation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.36362024 China CEO Outlook2024 China CEO OutlookCEOs plan to invest more in digital transformation this year to maintain their competitiveness50%of 28%45%1

311、4%6%2%5%0%20%40%60%Less than 1%of total revenues1-5%of total revenues5%-10%of total revenues10%-15%of total revenues15%-20%of total revenuesMore than 20%of total revenuesAn enterprises profitability and cash flow directly affect its investment in digital transformation.In the current economy,enterpr

312、ises are adopting a more conservative approach when investing in digital transformation.Our survey shows that 73%of Chinese CEOs currently invest less than 5%of their enterprises annual operating income in digital transformation(Figure 26).Uncertainties in the economic outlook and fluctuations in fi

313、nancial performance in 2024 have caused companies to be more cautious when evaluating investments,especially for digital projects with insignificant short-term returns.In 2024,48%of enterprises have chosen to keep their budgets for digital transformation at the same amount as in the prior year becau

314、se the economic recovery was less than expected and profits declined.However,digital transformation has become a must for most companies.50%of enterprises plan to invest more in digital transformation this year to maintain their competitiveness,especially those in consumer goods,finance,automobiles

315、and the Internet,where competition is fierce,and success is highly dependent on information technology.Figure 26Figure 26AnnualAnnual investmentinvestment in in digitaldigital transformationtransformation projects,projects,%Source:KPMG 2024 China CEO Outlook章節一短期挑戰章節三章節四章節五章節六章節七章節八章節九章節十附錄Short-ter

316、m expectationShort-term challengeShort-term strategyMid-term expectationMid-term challengeMid-term strategyAID Digital igital intelligenceintelligenceESGAppendixExpanding overseas 2024 China CEO Outlook2024 China CEO Outlook3737 2024 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advi

317、sory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.

318、All rights reserved.29%41%44%45%56%71%0%10%20%30%40%50%60%70%80%Global SupplyChainRestructuringCore job skilltransformationThe pressureand dividends ofsustainabledevelopmentThe Importanceof CybersecurityConsumerpreferences areconstantlychangingThe accelerationof technologicalinnovation pace48%40%29%

319、28%0%10%20%30%40%50%60%Economic recovery fallsshort of expectationsDecline in corporateprofitsTalent shortagegeopolitical tensionsNew technologies and changes in consumer preferences are the biggest drivers of corporate digital transformation.Our survey shows that technological innovation,changes in

320、 consumer preferences,network security,and public expectations around sustainable development have pushed enterprises to accelerate digital transformation and adopt the latest digital solutions to maintain or sharpen their competitiveness(Figure 27).The restructuring of global supply chains is requi

321、ring enterprises to use digital technologies to improve the resilience and flexibility of their supply chains and better manage risks.Moreover,changes in the labour market,such as changes in core skills and rising labour costs,may prompt companies to implement digital talent strategies.However,talen

322、t shortages,especially in key positions such as data engineers,data architects and machine learning engineers,may hinder enterprises digital transformation process.Figure 27Figure 27External factors impacting organisations digital strategies/External factors impacting organisations digital strategie

323、s/transformation projects,%transformation projects,%Source:KPMG 2024 China CEO OutlookFactors accelerating corporate digitalisationFactors slowing down corporate digitalisation章節一短期挑戰章節三章節四章節五章節六章節七章節八章節十Short-term expectationShort-term challengeShort-term strategyMid-term expectationMid-term challe

324、ngeMid-term strategyExpanding overseas AIESG附錄Appendix章節九D Digital igital intelligenceintelligence 2024 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnersh

325、ip,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.38382024 China CEO Outlook2024 China CEO Outlook6%19%19%27%28%39%40%45%50%0%20%40%60%Human resourcesInternal m

326、anagement coordination and connection within the organizationIT infrastructureCustomer experience optimizationDigital and intelligent financingProcurement and supply chainProduction efficiency improvementDigital marketingCustomer relationship managementBoosting performance and efficiency are the key

327、 aims of corporate digital transformation.Our survey shows that about 50%of Chinese CEOs are focussing on customer relationship management and digital marketing in their enterprises digital transformations(Figure 28).Companies are analysing customer behaviour,improving customer interaction,and engag

328、ing in multi-channel marketing through digital platforms and tools,which are proving crucial for effectively managing customer relationships,enhancing market responsiveness,and driving performance.In addition,nearly 40%of Chinese CEOs are improving the efficiency of their procurement,supply chain ma

329、nagement and production operations using digital solutions,such as supply chain visualisation tools,inventory management systems and automated quality inspection systems,enabling them to improve productivity,reduce costs and enhance the overall competitiveness of their enterprises.Figure 28Figure 28

330、PrioritiesPriorities in organisations digital transformation,%in organisations digital transformation,%Source:KPMG 2024 China CEO OutlookFrom the perspective of technology,following the launch of the AI Plus”and Data Element X initiatives,the digital transformation of Chinese enterprises has entered

331、 a new stage.Our survey shows that AI and big data will be the key focuses of Chinese enterprises digital technology investments in the next one to two years,marking the transition of companies from digitalisation to digital intelligence and from efficiency-boosting to decision-making(Figure 29).Com

332、pared with traditional automatic process technology,AI technology not only reduces costs and increases efficiency,but also demonstrates unique value in supporting decision-making and promoting business change.In the next one to two years,the digital transformation investment of enterprises will be g

333、uided by data and AI and shift from technical support to creating value,optimising business insight,expanding into new markets and helping leaders make decisions.In addition,enterprises will also integrate robotic process automation(RPA)into their operations to improve productivity and efficiency and invest in advanced network security solutions to protect their assets and customer data.章節一短期挑戰章節三