'Dual circulation' to boost growth (I)

A1: For Michelin, the Chinese market has always been an important growth engine, and it has become particularly important during the pandemic. Michelin China's business has gone through three stages: a short-term downturn, rapid recovery and sustainable growth last year.

There are several major reasons behind it: Our business has proven to be quite resilient. From the main business tires, we are gradually moving toward connected services and solutions, high-tech materials, hydrogen mobility, and Michelin experience business. We are also embracing digitalization to cope with the ever-changing market and seize more opportunities.

We are full of confidence in 2021 and beyond.

A2: Foreign companies are important players in dual circulation. Deeply rooted in China for more than 30 years, Michelin has established deep connections with the Chinese market, the mobility industry stakeholders and Chinese consumers. Michelin is an international brand, but we are Chinese company in China, serving the Chinese market, satisfying consumers' rapidly evolving demands with high-quality product and service. Foreign companies are also great beneficiaries of the dual circulation. Promoting external circulation means that China will further open up and optimize the business environment.

A3: We have deepest feelings about "safeguarding the operations of market entities". The vitality of market entities is the foundation of entire economy. The government's efforts have ensured the stability of the industrial chain and supply chain, and provided external impetus for Michelin's business development.

A4: The Chinese economy has achieved growth for two consecutive quarters, and the speed continues to accelerate. The resilience and stability of the Chinese economy are of great significance to enterprises.

The resilience of the Chinese economy paves the way for recovery. From the first sign of the pandemic, we focused our actions on two absolute priorities: to protect the health and safety of every Michelin employee and to ensure business continuity, which are in line with the country's direction. Thanks to a stable and safe external environment, Michelin was able to restart production at factories in China on February 10 and resume business growth in April last year.

The stability of China's economy can boost confidence. Michelin China proactively explores new businesses, searches for new partners and detects new opportunities. And it has been recruiting talents to prepare for a high-quality and high-speed development.

A5: The "new development stage" is an accurate judgment based on the current environment, market and people. The new development stage calls for high-quality development. China's view of development has moved from quantity to quality, which places new requirements for companies on keeping pace with such transformation. Michelin will endeavor to bring science-based and technology-focused products and services to Chinese market.

Reform and innovation are the fundamental driving force. We believe that there will be more reforms and opening-up policies that will encourage and protect innovation. Michelin is delighted to see this new development trend, and will strive more for innovation.

A6: China focuses on high-quality development and innovation, which fits Michelin's strategy well. Michelin has been in the China market for three decades, and we are upbeat about our growth here in the next three and many more decades. We are committed to contributing to China's high-quality growth in the coming decades, as we leverage our expertise and innovation capabilities to further promote sustainable mobility in this country. We are also committed to minimizing our impact to environment with our carbon neutral strategy.

A7: In the 14th Five-Year Plan (2021-25) and 2035 long-term development goals, I have repeatedly seen the word: "people". People is regarded as the most important criterion for the success of development. For example, development is for the people, development depends on the people, and the fruits of development are shared by the people, with the aim to promote common prosperity.

As part of our sustainable strategy, everything Michelin does must meet "three inseparable criteria — people, profit and planet". We share the same philosophy. Our development is by people and for people.

I'm also touched by the key direction – the high-quality growth. This is also in line with Michelin's development strategy. As an innovation-driven company, we are more confident in achieving high-quality and sustainable development in China.