China's vast market, rapid innovation and resilient economic outlook are reinforcing its position as one of the top strategic priorities for Panasonic Holdings Corp, with the company planning to step up investment in areas such as artificial intelligence, elderly care and smart manufacturing, a senior executive said.

Tetsuro Homma, executive vice-president of Panasonic Holdings Corp and group chief executive for China and Northeast Asia, said China has evolved from a manufacturing base into a global innovation hub and a "training ground" for multinational companies, citing its fast digitalization, complete industrial chain and strong talent pool as key drivers underpinning long-term growth opportunities.

"China's market has incomparable advantages in innovation speed, market scale, the pace of intelligent transformation, its ability to absorb and apply new technologies, talent resources and supply chains," Homma said. "Amid intense competition, the Chinese market has become a 'training ground' for multinational companies to enhance their competitiveness."

For Panasonic, China has become far more than a production base or consumer market. "China is not only a major market and manufacturing powerhouse, but also an innovation powerhouse and a nation of engineers," he said, adding that the country is now "a global source of innovation and the main arena of competition".

Homma said China's economic resilience continues to reinforce the confidence of multinational corporations operating in the country.

"Achieving the 5 percent annual growth target in 2025 amid a complex and volatile external environment, China sends a clear, firm and positive signal to the world, demonstrating the strong resilience and stability of China's economy," he said. "It has also strengthened the confidence of foreign companies to develop in China for the long term, and we are continuing to increase investment with concrete actions."

China has already become one of Panasonic's most important global pillars. The company generates close to 100 billion yuan ($14.5 billion) in annual revenue in China, accounting for about a quarter of its global business and contributing roughly 30 percent of its profits.

"China is one of Panasonic's largest overseas business bases and one of its most important strategic markets," Homma said. "Looking ahead, Panasonic will continue to deepen its presence in China and co-create with China, striving to achieve high-quality and sustainable growth in the Chinese market."

Despite a slowdown in consumer spending in China in recent years, Panasonic said it has maintained growth momentum in industrial segments tied to emerging technologies.

"Although consumer spending in China sees a moderate momentum, Panasonic has achieved two consecutive years of business growth in components and industrial equipment that empower industries such as artificial intelligence, semiconductors and new energy," Homma said. "This gives us full confidence in China's economic development this year and in the future."

Citing China's push to expand domestic demand and upgrade consumption, he said that presents significant opportunities, particularly in areas such as healthcare, elderly care and smart homes, which align closely with Panasonic's business focus on healthy and intelligent living solutions.

"We will actively participate in China's efforts to boost consumption, helping release domestic demand potential with high-quality products and services and growing together with the Chinese market," he said.

According to the annual Government Work Report, China will take the expansion of domestic demand as a priority this year. Meanwhile, the country will advance and expand the "AI Plus" initiative.

As AI is emerging as another key growth driver, Homma said China's "AI Plus" initiative is reshaping both consumer and industrial ecosystems, from smart home applications to rising demand for upstream components and materials driven by expanding AI infrastructure.

Looking ahead, Panasonic plans to deepen its presence in sectors aligned with China's economic transformation, focusing on consumption-driven industries such as healthcare, elderly care and smart living spaces, and industrial opportunities created by new quality productive forces.

"What makes China distinct is not only its scale, but also its diversity and capacity to generate innovative products and business models that are increasingly different from other markets," said Denis Depoux, global managing director at German management consultancy Roland Berger. "For multinational companies, China remains pivotal."