Storyline: Foreign companies digitalize, localize their strategies in China [Voice_over] Foreign companies in China are adjusting their strategies toward a more localized direction amid economic uncertainties worldwide. The so-called “China-for-China” strategy has been widely adopted by many market players. Chen Tong takes a closer look. This is the biggest factory among construction material producer Sika’s 16 plants in China. With an annual production value of 260 million yuan, this factory only has 42 people — and only 15 of them are production workers. Digitalization is embedded in nearly every aspect of the firm’s operations—from automotive production to monitoring water and electricity usage, to sales. This integration is key to the factory’s efficiency. [Sound_bite] Florent Tarascon, Industrial Director, Sika BFM China: "We definitely see some challenges. There is definitely a downturn that we see concretely in sales. So we have to be very smart in managing the costs of the production facilities." [Voice_over] Sika is a global company headquartered in Switzerland. It has been in China for decades. But one of the key players helping the firm to digitalize is a Chinese internet conglomerate. Tencent Smart Retail has supported the smart transformation for around 1,000 companies, with its cloud infrastructure, AI and big data analytics capabilities. [Sound_bite] Wang Jiali, Senior Account Manager, Tencent Smart Retail and Lifestyle Services: "According to our observations, foreign companies are deepening and accelerating cooperation with the Chinese digitalization ecosystem, in order to connect, know and serve the clients." [Voice_over] And foreign companies’ digital transition in China also shows its commitment to the China market. [Sound_bite] Florent Tarascon, Industrial Director, Sika BFM China: "I think the China market is important for any companies in the world. We have to be there and we've been there since 30 years. We still believe this market is a competitive market, but it has a lot of room for innovations." [Voice_over] In the first four months of the year, over 12,600 new foreign firms were established in China. While China’s market remains attractive, rising economic uncertainties have prompted a broader range of foreign companies to adopt a 'China for China' strategy. [Restrictions : No access Chinese mainland]