“The move is a signal of China's firm determination to further open up, improve the business environment and push forward globalization,” Stephane Rinderknech, L'Oreal China CEO, told the Global Times on March 5.

Stephane Rinderknech, L'Oreal China CEO Photo: Courtesy of L'Oreal China/ Global Times

At the threshold of a new chapter of reform and opening-up, reviewing the draft of the Foreign Investment Law during the two sessions to accelerate the legislation process has been widely anticipated by foreign companies.

Stephane Rinderknech said L'Oreal has long been a beneficiary of China's continuous opening-up and improvement in the business environment. Especially in recent years, the company has witnessed the accelerated launch of favorable policies in more areas including tax cuts, administration and delegation of powers streamlining, and effective regulation and market access. The holding of the first China International Import Expo in November 2018 is the best example of this process.

An increasingly open, fair, predictable and favorable business climate protected by legislation will definitely help the company develop with lower costs and higher efficiency. In this way, it can reinforce its focus on research and innovation, quality manufacturing, consumer service, local talent development, sustainability, and accelerating product launches to make more contributions to Chinese consumers and the market, he said.

As the first company to conduct trials of online filing of domestic non-special use cosmetics in the China (Shanghai) Pilot Free Trade Zone, the company has accelerated introduction of products to enrich consumers’ choices and meet their demand for more premium and personalized products, he added.

“We are looking forward to continuous opening-up in more areas and greater scale, like further aligning the tax system with international practice, promoting pilot programs of free trade zones in more cities in China, and exploring more innovative models to review personalized beauty products,” he said.

The company, which entered China in 1997, has moved from a foreign investor to a deeply localized company with local operating capabilities and resources including manufacturing, innovation, management and talent development.

Source: Global Times/People’s Daily

L'Oreal said recently that its sales in China rose by a double-digit amount in 2018, the highest growth rate in the past 14 years.