PPG confident investing in China market

Industrial material giant sees greater potential unleashed by beneficial moves

China's remarkable economic resilience and efficient policies will support the nation in shaking off the current COVID-19 impact and add more impetus to global recovery, according to a senior executive of PPG, the world's second-largest paints, coatings and specialty materials company.

Raymond Siu, chief financial officer and interim president of the US-based company's arm in the Asia-Pacific region, commented that China, as the world's largest manufacturer, continues to lead with the most comprehensive and resilient supply chain system, and represents huge growth opportunities as the second-largest consumer market.

"The more multinationals know about and integrate their operations into the Chinese economy, the more confidence they will have in China's long-term growth and prosperity," he said.

According to a recent State Council executive meeting, the country called for removing obstacles and improving supportive measures to fully leverage policy effects on the economy. He also pledged measures to further stabilize foreign trade and investment and promote the opening-up of the country.

Siu believes China has adequate policy instruments and conditions to withstand risks, stabilize the market and unleash greater development potential, creating more opportunities for domestic and foreign enterprises alike.

"Certainly, the pandemic has increased the level of near-term economic uncertainty. But we strongly believe China will continue a higher-level opening-up to further encourage all stakeholders to focus on and invest in the Chinese market," he said.

Despite facing multiple challenges in utilizing foreign investment, including COVID-19 disruptions and geopolitical issues, foreign direct investment into China, in actual use, expanded 22.6 percent from a year ago to $87.77 billion during the first five months, said the Ministry of Commerce.

Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation in Beijing, said China's incomparable economic potential is a key factor in attracting foreign investment, and its efforts and progress in better coordinating domestic epidemic control and economic development have also shown foreign investors its willingness to improve the business climate and provide them with stable and enabling investment environment.

Siu said China has been one of the most important markets for PPG, which first invested in China in the late 1980s. The company will continue to invest in China while seeking to upgrade its research and development and production capabilities that address the needs of both China and global markets, he said.

With its China headquarters located in Shanghai, PPG currently operates 16 manufacturing plants and five R&D centers on the Chinese mainland, with around 4,000 employees.

In 2021, PPG started building a global innovation center in Tianjin to focus on technology development and innovation not only for the China market but also for the Asia-Pacific and PPG operations around the globe.

With a total investment of $80 million, the facility in Tianjin is the only innovation center outside of PPG's global headquarters and is expected to be operational in 2023.

The company is also setting up its Battery Pack Application Center in China focusing on electric vehicle battery technology innovation.

"Here in China, there are complete industrial chains, rich human resources, available infrastructure facilities and a huge domestic market, meaning there are significant growth opportunities," Siu said.

"As China continues to open up to the outside world, foreign companies are expected to have more business opportunities, and thus benefit from a growing Chinese consumer market," he added.