A1 Over the past 70 years since its founding, the People's Republic of China has achieved great economic, technological, and cultural progress. Among them all, the biggest change is the incredible improvement in people's living standards, which is reflected in the increasing purchasing power of the public.

Fonterra entered the Chinese mainland market more than 40 years ago, and established an integrated business that covers grass to glass, encompassing consumer brands, food service, farms and ingredients. We are dedicated to bringing high-quality New Zealand dairy nutrition and farming technologies to China, and utilizing our world-class experience in food safety and quality to develop China's dairy industry for generations to come.

A2 Fonterra China adopts a value-add strategy, which means we aim to provide higher-value products to consumers, rather than just commodities. With higher living standards in China, Chinese consumers are pursuing more high-quality products over low-price ones. Our China business strategy reflects these macroeconomic and consumption trends.

Fonterra has established an integrated business that covers all parts of the dairy supply chain, from grass to glass, and encompassing consumer brands, food service, farms and ingredients.

A3 We welcome the Foreign Investment Law as it will help create a better environment for multinational companies' development in China. Fair competition will help enterprises to compete fairly and fully, and contribute to the Chinese economy without worries, which will fundamentally boost market confidence.

Fonterra has benefited from China's ongoing opening-up policy. After being on the Chinese mainland for more than 40 years, Fonterra has developed into a large-scale business with 1,700 employees across the country. An open and legitimate business environment will help us thrive and contribute further to China's future growth.

A4 With rising living conditions and a desire for better lives, Chinese consumers are developing a taste for healthy food, like dairy. Fonterra is committed to providing Chinese consumers with trusted and high-quality dairy nutrition.

The upgrade from nondairy substitutes to natural dairy ingredients in the food service industry is a great example of these trends. We're seeing more bakeries and tea houses turning to butter and cream to create tastier and healthier products.

A5 We appreciate the government's efforts in this area as this will benefit our development in China. A more efficient working environment will surely boost the dynamic of the economy and help grow businesses like ours. Fonterra is committed to supporting the sustainable development of China's dairy industry through our advanced techniques and management.