What business leaders are watching at CIIE: Part I
What are the highlights of your exhibits at the China International Import Expo? Are you launching any new products, technologies or solutions?
In terms of performance materials, Merck has display solutions, surface solutions and semiconductors solutions. We will introduce our advanced performance materials used in electronics, smart device and automobiles.
For the life sciences industry, Merck will present research, process and applied solutions and products, including Crispr (gene editing technology), lab water systems, cell counting and sterile sampling equipment, as well as a virtual reality system for customers to experience Merck's latest life science products and solutions.
In terms of deals, what do you expect from the CIIE? Whom are you targeting?
Merck decided to participate in CIIE for three reasons. The first is to showcase leading products and technologies from all our businesses - healthcare, life science and performance materials.
The second is to strengthen relationships and dialogue with our Chinese partners. We value our partnerships with Chinese customers and the government and see the Expo as an opportunity to deepen and broaden those relationships.
Thirdly, Merck is a company with a deep tradition in innovation. We've had many break-through products in our 350-year history. We launched our innovation hubs in February this year in China. The expo is a great platform to look for innovation partners, ideas and cross-sector opportunities that will ultimately lead to more breakthroughs for China.
Do you think the CIIE could eventually help drive the development or upgrade of the industry your company is in, and your company's strategy in China?
Industry upgrades are happening in every sector we are in. CIIE is not only a stage for companies to demonstrate products and technologies but also a platform for partners to build dialogues. It will help create understanding and shape future industry development.
CIIE also comes at a really good time when we are in face of confusion about world trade. China is an important country for Merck, we're very committed to the country and look forward to further growth and opportunities to come.
What's your view on China's pledge to further open up its markets to foreign companies? How would that benefit your business? Any specific examples?
For Merck, China's opening-up has been transformative, creating tremendous demand and new opportunities across all our businesses.
Take for example the pharmaceutical industry: urbanization, an aging population, and increased healthcare awareness have combined to create a surge of healthcare demand. At the same time China is becoming more open to new ideas and investors. These factors lead to China's demand for new medicines, new solutions and new ways of thinking.
China aims to become the world' largest producer of displays and semiconductors. This ambition has positive implications for our Performance Materials business. Chinese manufacturers use our materials to give them a competitive edge in the world market. We are growing solidly along with our partners in all these areas.
Our life science business is also seeing strong growth, driven by China's transformation from labor-intensive manufacturing to an innovation-driven economy. This shift is pushing investment dollars – both for Merck and industrywide – into research and R&D, which is great for our life science business.
What is your forecast for China's economy in the next three years? What key issues will you be watching for?
As a company operating in China for 85 years, Merck has great confidence in China's economy in the future.
According to the "13th Five-Year" plan (2016-2020), China has strong needs in areas of healthcare, high quality food and drugs and solutions on environment protection where Merck can contribute with our products and innovations.
Moreover, China is to transform from labor/manufacturing intensive development to innovation driven economy. This trend created a lot of investment on research, which leads to the fast development of our Life Science business here. Our commitment to China will not be changed in the foreseeable future and we will keep investing in every sector.
We are also excited about what we're seeing in terms of Chinese innovation: from e-commerce to biosimilars development, it's having a big impact on our strategy. That is why we decided to open Merck innovation hubs in China.
