Multinational consumer plays keen on China

A1 I've lived in China for 10 years, and I've seen and been impressed by so many developments in my time here. One of the many key factors that has struck me about China's progress is the country's spirit of agility. The world's political and economic environment continues to constantly change and evolve rapidly and the market and people here respond quickly and proactively to varying circumstances and different situations. For example, China has modeled how quickly markets can recover from the pandemic and emerge stronger, demonstrating the resilience of the Chinese economy.

At Diageo China, we often use the expression, "China Speed". We always strive to be agile and flexible in terms of strategy and execution, and this spirit is China-homegrown.

A2 We see encouraging long-term growth trends in the market and an exciting future ahead. We remain committed to growing our business footprint in China and aim to meet the growing demand of Chinese consumers by supporting the development of China's beverage alcohol and hospitality industry.

At Diageo, we believe that high-quality development is sustainable development that emphasizes doing business the right way for longer term progress that also contributes value to our customers, consumers and communities.

We do see developments and reform that aim to enhance our sector. For example, China is revising its whisky standard. Diageo, along with the Foreign Spirit Producer Association, appreciates the opportunity to participate in the process, discuss and contribute ideas, as we share the same objective of developing a future-proof product standard fit for China.

A3 From our decades of experience in China, we see that Chinese consumers' spending power is growing faster than anywhere else in the world. With growing disposable incomes, Chinese consumers are leading trends and becoming more sophisticated and demanding. For instance, we have seen a growing desire among some Chinese consumers to buy a cask of whisky instead of a bottle. This was unthinkable just a few years ago. Looking into the future, I hope we can further explore even more opportunities to grow as well as contribute to this dynamic market, working together with our partners to further stimulate economic development and the agility of business growth in the market and industry.

A4 We believe the trend of premiumization, where consumers value quality and drink better, not more, will endure. We are confident in our diverse portfolio being able to cater to every occasion and consumer－from baijiu to Scotch to premium beer.

Our company is sustained through innovation, and we are constantly looking to create premium and new experiences for Chinese consumers. To attract more consumers to know, learn and appreciate whisky, introducing authentic and premium whisky products to the market and continuously innovating and tailoring products for the Chinese market sits at the heart of our strategy.

A5 With numerous measures like simplified approvals, optimized services and reduced barriers, China has continued to construct a robust business environment for global investors. These measures have boosted system integration and innovation, accelerated the release of policy dividends, realized efficient interdepartmental collaboration and created a high-quality, legalized, international and convenient business environment.