Big name global manufacturers keen on 2023

Editor's Note: China Daily is publishing interviews with CEOs of major foreign enterprises to gauge their outlook for the Chinese economy, their operations in China and their business plans for 2023.

Q1 Given the backdrop of a feared global economic recession, threats to global supply chains and the deep impact of the COVID-19 pandemic, what's your outlook for China's economy and your company's operations in China in 2023?

DING: China's economy has shown its resilience and sound long-term fundamentals amid multiple challenges. We look forward to seeing China's overall recovery as the country rapidly emerges from the pandemic. 3M continues to have confidence in the Chinese market. China has been and will continue to be a strategic market for 3M, where we've achieved growth for nearly 40 years. 3M is committed to our business in China and will continue to invest in local manufacturing, R&D capabilities and our local talent, thus continuing to be a part of China's even more open market.

YU: The expected solid growth in China this year will underpin global economic recovery. The country's initiatives in areas of industrial digitalization and low-carbon development will bring more opportunities to companies such as Honeywell, which focuses on ready-now solutions in sustainability and digitalization. In 2023, Honeywell will continuously give full play to its strengths in digital transformation and low-carbon technologies to enable the sustainability goals of more Chinese customers.

Heinricht: We maintain a positive outlook for 2023, although we still face global challenges, such as increasing energy and raw material costs. Globally, we have set a growth target of 5 to 8 percent for the current fiscal year. In China, we will push ahead to expand our production and continue supplying the local market with reliable products. China is one of the fastest-growing countries and remains a focus market for future growth, as part of Schott's global strategy. In recent years, our company has achieved record-breaking financial results in China. More specifically, during the 2022 fiscal year, Schott was able to grow by 10 percent globally and by 4 percent in China, despite the difficult global environment.

ZHANG: In spite of the impact of the COVID-19 pandemic and international turbulence, China's economy has still demonstrated strong resilience and great potential. In 2023, as China enters the post-contagion era, its economy will continue to develop with high quality. The global economy is undergoing various challenges, but this drives the development of the digital economy. More innovative technical solutions are needed in all industries to meet global challenges. Many industries in China are accelerating digital transformation, and they are increasing the recognition and investment in digitalization. This is the "China opportunity" that Dassault Systemes sees. In 2023, Dassault Systemes will expand its business in more industries and regions and will focus on verticals to create industrial ecosystem chains connecting upstream and downstream segments in key industries, and empower more Chinese enterprises with technical innovations, thus helping them succeed in the digital transformation.

HOMMA: In 2023, the Chinese market is likely to suffer from insufficient consumption, including in the real estate sector. Panasonic also faces such challenges. We are delighted to see a surge in the movement of people during the Spring Festival holiday, and that life has returned to the normal hustle and bustle. It is hoped that in 2023, with the appropriate guidance of government policies, China's consumption market will continue to grow and lead the global economy to rebound.

Q2 Which business segment (s) of your company do you expect to see high growth in China this year? What are the new trends and interesting business opportunities in the Chinese market that your company might be keen to tap? How will you align your business strategies with such trends?

DING: We see many growth opportunities in China across our leading businesses — including industries like electronics, automotive, health care, air quality and safety. As a longtime leader in sustainability, we are also excited about opportunities from China's focus on green development, a priority of China's long-range strategic plan. Sustainability is incorporated into every new product 3M makes. In China, for example, we have Thinsulate featherless insulation made from 100 percent recycled plastic bottles and used as a down alternative in clothing. As we have done for decades, we will continue to help support the evolution of China's economy into a greener future.

YU: With our core business perfectly aligned with Chinese market demand, including digitalization and sustainability, we pay close attention to developing key verticals and continue to invest in growth industries, which enables us to drive "indigenous innovation" tailored to local customer needs. About 60 percent of Honeywell's new product research and development investment is directed toward products that improve environmental and social outcomes for customers. With an increasing number of market players in China joining efforts to meet the country's "dual carbon" goals, we seek to join Chinese partners and customers to create a more sustainable future.

Heinricht: Schott Pharma is a significant contributor to our success. The subsidiary produces pre-filled syringes made of glass and polymers, cartridges and vials that are used to safely store and administer medications. During the last fiscal year, Schott established a stand-alone company for its pharma business to take even greater advantage of the dynamic developments in the pharmaceutical market and allow the group to explore new strategic opportunities. In modern lithography machines for computer chip manufacturing, silicon wafers and exposure masks have to be positioned precisely in order to produce the finest structures for the most powerful microchips. We also see promising opportunities for our high-quality fiber optic light guides, for example, for robotic surgery.

ZHANG: Last year, Dassault Systemes achieved a breakthrough and rapid growth in 12 industries. For example, the company implemented a liquor production line project in the packaging consumer goods industry. In the construction field, new generation weather radar in Wuhan, Hubei province, became the first "paperless "building in China. In 2023, we expect that the industries in which Dassault Systemes has advantages will maintain a high growth level, like automobiles, aviation and industrial equipment in the manufacturing industry. At the same time, we will deepen cooperation and empowerment in critical new industries, as well as expand regional markets to drive the realization of business objectives. In addition, Dassault Systemes has been paying close attention to the needs of small and medium-sized enterprises for digital transformation and we will provide high-quality local services to them.

HOMMA: We aim to surpass China's GDP growth rate and are working on it. I believe that the Chinese market has incomparable advantages. It is dynamic and full of vitality. For example, demand for smart refrigerators, dryers and dishwashers has increased after the easing of COVID-19-related measures. People use smartphones and are willing to accept new technologies. There is a social atmosphere and soil that respects innovation and allows failure, as well as a large number of technical personnel. I believe these will bring out opportunities for foreign enterprises to develop in China.