Nestlé CEO Laurent Freixe praised China's new consumption-boosting action plan as "the best news for the consumer goods industry" and see China as "a prime location" for initating innovation.
The plan was issued last week by the General Office of the Communist Party of China Central Committee and the General Office of the State Council, aiming to vigorously boost consumption, stimulate domestic demand across the board, and increase spending power by raising earnings and reducing financial burdens.
It is the latest effort by the world's second-largest economy to make domestic demand the main engine and anchor of economic growth.
During an exclusive interview with China Global Television Network (CGTN) on the sidelines of China Development Forum 2025, Freixe said China's consumption-boosting action plan presents a significant opportunity for the consumer goods industry, especially for Nestlé as a market leader.
"I think it is great news for the industry. China is a huge consumer market and has a lot of potential supporting consumption. Certainly the best news for the consumer goods industry. We are the leaders in this industry. So we will take advantage of that great opportunity that the government package will be offering to our industry," said Freixe.
Nestlé, the Swiss food giant, has been present in China for nearly 40 years. China currently stands as Nestlé's second-largest market globally, generating over 40 billion yuan in annual revenue.
Since 2020, the company's new investment in the Chinese market has exceeded 2 billion yuan and it plans to further increase investment in pet food, coffee, and infant formula.
Freixe underscored China's dynamic consumer landscape and its openness to innovation.
"So exciting about China, the size of the consumer market, the fact that the consumer is very open to innovation, new flavors, new products. So that's exciting. But it's also demanding because we have to move at the pace of the Chinese consumer. We see China as a prime location for developing new products, new services and taking advantage end to end, from farm to fork, of AI technology," he said.
Nestlé CEO lauds China's pro-consumption plan as "best news" for consumer goods industry
U.S. stocks sank on Thursday as an escalating conflict in the Middle East and a renewed surge in oil prices weighed heavily on Wall Street.
The Dow Jones Industrial Average fell 1.61 percent to 47,954.74. The S and P 500 sank 0.56 percent to 6,830.71. The Nasdaq Composite Index shed 0.26 percent to 22,748.99.
Eight of the 11 primary S and P 500 sectors ended in the red, with consumer staples and materials leading the laggards by dropping 2.43 percent and 2.27 percent, respectively. Energy and technology led the gainers by adding 0.59 percent and 0.39 percent, respectively.
Oil prices jumped significantly after Iran announced it had struck an oil tanker with a missile. U.S. benchmark West Texas Intermediate crude futures for April delivery surged 8.51 percent to settle over 81 U.S. dollars per barrel, reaching their highest level since July 2024. International benchmark Brent crude futures for May delivery advanced 4.93 percent, trading above 85 dollars per barrel. These sharp upward movements in energy markets drove major swings across equities throughout the trading session.
As Iran is the fourth-largest producer in the Organization of the Petroleum Exporting Countries, concerns are mounting that the conflict's impact on production capabilities could have wide-ranging effects across global commodities. The soaring energy prices have also sparked fears among investors that persistent inflationary pressures might force the Federal Reserve to re-evaluate its anticipated interest rate cuts in an already volatile market environment.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note climbed to near 4.14 percent, up from Wednesday's close of approximately 4.1 percent. The yield, which heavily influences consumer borrowing costs across the broader economy, has risen consecutively every day this week after ending the previous week at 3.95 percent.
In corporate developments, Advanced Micro Devices lost 1.3 percent following a report that the U.S. government drafted rules restricting AI chip shipments without its approval.
Conversely, telecommunications equipment provider Ciena dropped 12.88 percent, and StubHub retreated 12.39 percent. Costco Wholesale, which is scheduled to report its quarterly results after the market closes, fell 2.4 percent during regular trading hours.
On the economic calendar, Friday features a highly anticipated monthly jobs report, offering investors another read on the labor market's health.
U.S. stocks sink as Middle East tensions trigger oil price surge
