Big name global manufacturers keen on 2023

Q3 China's top policymakers have pledged greater efforts to attract foreign capital, widen market access, promote further opening-up of modern service industries and ensure a level playing field for both domestic and foreign companies. In this context, what measures do you expect this year? Will you draw up new plans for investment, hiring and business expansion in China?

DING: We are encouraged that China's approach to foreign investment remains positive, with a steadily improved business environment and expanded foreign investor access. We look forward to continuing to be a part of China's even more open market. China is a strategically important long-term market for 3M.

In the first quarter, 3M will set up a $2.5 million thermal runaway barrier production line at its plant in Hefei, Anhui province, to supply more products for new energy vehicle producers in China. TRB material is used in batteries for electric vehicles and effectively enhances batteries' thermal management performance and reduces the risk of batteries overheating. Mass production in China will enable 3M to respond more quickly to growing demand in the local EV market.

YU: The government's policy of a more open, fair and transparent market for business operations sends a strong signal to the international business community that China is committed to opening to the outside world and welcoming MNCs' investment and development in China.

In fact, China is already Honeywell's second-largest single market and the company's largest growth market. We believe that the great potential of the Chinese market will be further released and will help bring about the continuous improvement of people-to-people exchanges, capital flows and technological innovation that will drive steady economic growth over the long run.

In 2023, we will further develop key verticals and invest in growth industries to meet increasing market demand for high-quality products and services in China.

Heinricht: We have built up close relations with local governments in the past years. Timely support from local authorities made it possible for us to build a factory at record speed. Recently, Schott Pharma announced plans to invest in production capacity for pharmaceutical cartridges in China.

During the current fiscal year 2023, Schott plans to increase its investments to 500 million euros ($542.5 million) globally and 55 million euros in China to continue organic growth. With a strengthened production network, we can continue to be a reliable partner for our customers in their search for the perfect solution and supply important specialty glass components and innovations for their products.

ZHANG: We pay close attention to the policies of the Chinese government for supporting the development of foreign companies in the Chinese market and attracting more foreign investment. Continuous optimization of the investment and business environment and deep implementation of the Foreign Investment Law will help create a better development environment for foreign enterprises.

Dassault Systemes will continue to expand its business in the Chinese market. In 2020, we moved our Asia-Pacific headquarters from Japan to Pudong, Shanghai. In recent years, we have been cooperating with local governments, such as Qingdao, Wuhan and Changchun, to establish innovation centers and help develop other local industries.

HOMMA: Panasonic is accelerating its investment in China and plans to invest 50 billion Japanese yen ($382 million) during the three years until 2024 to build 14 new sites in China. Nearly half of the sites have been completed and started operations.

By June 2023, Panasonic plans to move our Japanese rice cooker production line to Hangzhou, Zhejiang province.

Q4 This year marks the 45th anniversary of China's famed reform and opening-up policy. In this context, in which areas do you expect more progress? How is your business likely to benefit?

DING: We welcome China's continuous efforts toward reform and opening-up. 3M has benefited from the steadily improved business environment. This includes significant progress on IP protections, which will facilitate market access for many products. Today, as the world recovers and rebuilds, we need even stronger collaboration among all sectors of society across the globe. And the pandemic has reinforced the power of science to solve tough challenges. As a science company, 3M is using our capabilities to advance worker safety, empower consumers, strengthen health care, and reshape the future of transportation and manufacturing through wider collaboration with all our stakeholders.

YU: Honeywell has a long history in China that dates back to 1935 when it established its first franchise in Shanghai. During former US president Richard Nixon's China visit in 1972, Honeywell UOP was the only company in its field selected and recommended to join economic exchanges between the two countries. Since China's introduction of the reform and opening-up policy, Honeywell's China business has been growing rapidly. Today, all of Honeywell's business groups have established a broad presence in China, with our Asia-Pacific headquarters being in Shanghai since 2003. With the famed policy having been adopted for 45 years, Honeywell will work closely with Chinese partners and customers to create a smarter, safer, healthier and more sustainable future.

Heinricht: In the past two decades, China has become the fastest-growing market for Schott. We have greatly benefited from support of local policymakers, for example, in overcoming difficulties during the pandemic, reducing taxes for innovative tech companies and offering business-friendly services and procedures. In China, our R&D center in Suzhou has further developed our glass to fit the needs of Chinese smartphone brands, such as Xiaomi and Vivo, and enabled them to launch innovative foldable smartphones in recent years.

ZHANG: As stated in the report to the 20th National Congress of the Communist Party of China, the Chinese government will continue to adhere to the principle of "deepening reform and opening-up", especially at the institutional level, to ensure that multinational enterprises enjoy equal treatment and an optimum business environment in the Chinese market. The new round of high-level opening-up measures pushed forward by China demonstrates the inclusiveness of the Chinese economy, and we have seen more opportunities for cooperation, innovation and growth with Chinese partners.

HOMMA: Panasonic has witnessed China's reform and opening-up, and always regards solving Chinese social issues as our own responsibility. In light of China's national conditions, we will continue to make contributions to China's modernization drive in three major business areas — health care and elder care, new energy vehicle components and intelligent manufacturing. Our business in China has reached 110 billion yuan ($16.3 billion) a year, accounting for 28 percent of Panasonic's global business scale. China has become the second-largest market next to Japan and has served as a very important market for Panasonic.

Q5 As China continues to pursue high-quality development along a Chinese path to modernization, what is your vision for your company's business in the country? What business opportunities do you foresee emerging as part of this process?

DING: China's strong commitments to green and high-quality development bring us more opportunities. We are excited about opportunities to support China's digital upgrade and green transition by working closely with government bodies, enterprises and research institutes. Today in China, for example, our adhesives and films with low volatile organic compound emissions are being used to build more efficient high-speed and subway trains — with many more opportunities in front of us. China is a vital market for 3M.

As we have done for decades, we will continue to expand our capabilities and support the evolution of the Chinese economy into the future.

YU: China's pledge to achieve carbon neutrality by 2060 is a major milestone in the fight against global climate change and a key element in the country's pursuit of high-quality development. Honeywell is uniquely positioned to shape a more sustainable future by continuously developing sustainable technologies that provide our Chinese customers with ready-now solutions to meet their energy and environmental needs. In addition, Honeywell has been continuously expanding its presence, especially in emerging markets in central and western China, which represent one of the country's growth engines in the next decades.

Heinricht: We believe Schott can still make contributions to technological progress and economic growth in China, especially in high-tech sectors such as microchip production, space and astronomy, medical and life sciences, among many others. In the past, foreign investments in China used to focus on low-cost manufacturing, but now foreign and Chinese partners work together on high value-added products and services. Such collaborations will provide a strong impetus for China's long-term growth.

Besides technological progress, we also aim to contribute to China's climate goals. At Schott, we have one of the most ambitious goals in the specialty glass industry — to become carbon neutral by 2030. We switched to using renewable energy resources to cover our global electricity needs in 2022, which has helped us reduce our carbon footprint by 60 percent.

ZHANG: China has always been an active player in practicing sustainable development and has put forward its carbon peak and neutrality goals. With the upgrading of industries and the introduction of advanced technologies including digitalization, virtual twins, big data analytics, machine learning and artificial intelligence, the challenges or changes faced by enterprises in the process of achieving carbon neutrality also bring new opportunities for their development over the long run.

Dassault Systemes promises to achieve net zero emissions by 2040 and help achieve global sustainable development with virtual twins. In addition to integrating sustainability capabilities into all our operations, we are also providing software technology to our customers to enable and support their transformation to zero carbon emissions.

HOMMA: Since 1978, Konosuke Matsushita, the founder of Panasonic, promised to provide assistance to China's modernization drive. Panasonic has always carried out its business with the original intention of "contributing to China's modernization".The harmonious coexistence with nature, the target of peaking carbon dioxide emissions by 2030 and achieving carbon neutrality by 2060, as well as improving housing, developing new energy vehicles and elder care services proposed by the Central Economic Work Conference are highly consistent with Panasonic's key business layout in China.