An Gaobo, President of Merck China: Visionary multinational companies will continue to increase their investment in the Chinese market

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　　Editor's note: I walked into a multinational enterprise in China and listened to the CEO of a foreign enterprise talking about "opportunities for Chinese-style modernization" and explaining "the way of economic globalization".

　　China News Service , October 19th: An

　　China-Singapore Finance Wu Jiaju

　　"Merck's board of directors is unwavering in its investment in China. Merck has been deeply involved in China for nearly a hundred years. It does not engage in short-term, and believes in long-termism." Recently, An Gaobo, President of Merck China, said in an exclusive interview with Zhongxin Finance and Economics.

　　An Gaobo pointed out that with the upgrading and improvement of China's industrial structure, the continuous improvement of local innovation strength, and the sustainable development of the economy, at the same time, China adheres to a high-level policy of opening up to the outside world and accelerates the construction of a new development pattern. The truly forward-looking multinational companies will continue to increase their investment in the Chinese market. Continuously improve the business layout.

The interview transcript is as follows:

Zhongxin Finance and Economics: China's economy has undergone tremendous changes in the past ten years.

How do you view the development of China's economy in the past ten years?

What impressed you the most?

An Gaobo:

I have worked and lived in China for more than 20 years, and I have witnessed China's transformation into a high-tech country.

　　China's total economic output has risen from 53.9 trillion yuan in 2012 to 114.4 trillion yuan in 2021, and its proportion in the world economy has risen from 11.3% to more than 18%, becoming the first driving force for world economic growth.

Decades of extraordinary change, opening up and innovation have demonstrated the resilience and dynamism of the Chinese economy.

　　Today's China is no longer satisfied with being the "world's factory". In the past decade, China has vigorously promoted innovation at a miraculous "China speed", significantly enhanced its scientific and technological strength, and actively embraced digitalization, artificial intelligence or biomedicine, etc. The future trend is to make steady progress towards the goal of a high-tech country.

At present, the scale of China's digital economy ranks second in the world.

The development and application of new technologies such as artificial intelligence, blockchain, quantum communication, intelligent driving, and biopharmaceuticals are at the forefront of the world, and new formats and models such as Internet medical care have become the norm.

　　At the same time, Merck is fortunate to be able to deeply participate in and contribute to the rapid development of the Chinese market, and to innovate and grow together with the Chinese market. It is not only a participant in the development of China's market economy, but also a witness to China's modernization practice.

　　China is an important strategic market and growth engine for Merck Global.

Since the establishment of the first company in Shanghai in 1933, Merck has been rooted in China for nearly 100 years and has a firm localization strategy. So far, Merck has grown into a multinational company in China with more than 20 entities and more than 4,500 employees across the country.

Merck's three major business sectors—medicine and health, life sciences and electronic technology, have now fully invested in Shanghai and the Yangtze River Delta region.

Looking at all of Merck's businesses in China, our total investment in the past ten years has reached approximately RMB 5.5 billion.

Zhongxin Finance and Economics: In

An Gaobo:

In the more than 20 years in China, I have witnessed China's deepening reform and opening up, witnessed the take-off and modernization of China's economy, especially the comprehensive upgrade of infrastructure, and also felt the continuous improvement of business operations. Business environment, including efficient government office efficiency, further deepening of the foreign investment law, general improvement of intellectual property protection awareness, etc.

China is very special and important to me and Merck.

　　An important reason why we are rooted in China is that there is a world-class business environment here - a business atmosphere based on the thinking of serving enterprises and bringing together talents, finance and industry.

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The establishment of our Guangdong Innovation Center has benefited from the "speed of China". It only took about a year from the first meeting with the Guangdong government to the opening of the project. Similarly, we have completed the M Lab™ Shanghai Collaboration Center and Electronic Technology China. The center has benefited a lot.

　　Second, China has developed a complete industrial chain foundation, especially in the high-tech field.

Merck set up its electronic technology business and life science national operation headquarters in Shanghai is a good testimony.

Today, Shanghai has developed into a hub for our communication with Chinese customers. The R&D, production and customer cooperation centers of many Merck businesses are located in Shanghai.

　　Last but not least, China has become the birthplace of an important global innovation center.

Merck and Chinese partners continue to promote new technologies and new applications, and also continuously supply excellent talents for the development and growth of Merck in China and the world.

In 2019, we established our first innovation center in China in Shanghai, and announced the establishment of a RMB 100 million seed fund to help Chinese start-ups.

　　Merck's strategy is highly consistent with the relevant aspects of China's "14th Five-Year Plan", and Merck's main business is also in line with China's strategic emerging industries, constantly improving business environment, perfect industrial chain contacts and innovation engine role It will enable us to better cultivate the Chinese market and work with local partners to jointly promote the development of related industries in China and around the world.

Zhongxin Finance and Economics: What do you think is the attractiveness of the Chinese market for multinational companies?

An Gaobo:

The report of the 20th National Congress of the Communist Party of China emphasized "accelerating the construction of a new development pattern and focusing on promoting high-quality development", especially the policy concept of promoting high-level opening up, and emphasized that it will adhere to the implementation of a wider range, a wider field, and a deeper level. For us, this is undoubtedly very exciting, and it also provides a strong strategic guide for foreign companies to obtain more favorable detailed policy support for their subsequent development in China.

　　With the upgrading and improvement of China's industrial structure, the continuous improvement of local innovation strength, and the continuous economic development, China adheres to a high-level policy of opening up to the outside world and accelerates the construction of a new development pattern.

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From a broader perspective, China is no longer just a huge market full of potential, but also an important factor that affects the global development trend and constitutes the effectiveness of a company's global strategy.

Zhongxin Finance and Economics: As a company with rich experience in the medical and health field, how does Merck view the development prospects of China's medical and health field?

An Gaobo:

We firmly believe that China, as a major pharmaceutical country, will continue to develop vigorously in the future of China's pharmaceutical and health industry, regardless of whether it integrates with the world or innovates locally.

Under the guidance of the spirit of the 20th National Congress of the Communist Party of China and the "Healthy China 2030" Planning Outline, China has put forward higher standards for promoting the construction of a healthy China, improving people's livelihood and well-being, especially improving the quality, accessibility and innovation of medical and health services. Require.

　　Based on an open and innovative environment, and with the help of a series of policies such as accelerated approval, China's pharmaceutical innovation ecology has been gradually improved and optimized, and it is full of vitality, which will bring benefits to patients in China and around the world.

However, in this process, the accessibility and affordability of innovative therapies is a major challenge for Chinese pharmaceutical innovation.

　　Merck has been working closely with China to accelerate the localized production of key drugs, continue to develop new drugs to meet the needs of local patients, and invest in the establishment of research and innovation centers to continuously integrate the advanced technology and manufacturing expertise of Merck and the industry chain .

At the same time, we are also actively working with local partners to provide Chinese patients with more accessible, efficient and convenient medical and health services.

Zhongxin Finance: In May of this year, Merck announced two major investments in life sciences and electronic technology.

Why did Merck choose to invest in these two fields in China?

How do you view the development prospects of these two fields in China?

An Gaobo:

When China's "14th Five-Year Plan" was released, we noticed that Merck's three major business areas are highly consistent with China's current phased development priorities, and are in line with China's innovation-driven development strategy.

Merck actively supports the development of China's biotechnology and electronic technology industries, provides advanced medicines to Chinese hospitals and patients, and contributes to the active creation of "Healthy China, Digital China, and Green China".

　　In the field of electronic technology, from laptops to smartphones, from LCD TVs to various wearable smart devices, China is now not only the world's largest producer of consumer electronics, but also the largest consumer market.

With the new wave of digitization triggered by the COVID-19 outbreak around the world, and China's increase in the construction of digital technology facilities, we will usher in the explosive growth of data and the further rapid integration and development of the electronics industry. The Chinese market is at the cusp of a wave.

　　We believe that it will be a wise move for Merck to further increase its investment in the Chinese market and plan for the development of a new generation of electronic technology in the future.

We also hope to actively participate in and integrate into China's future digital economy and innovation ecology, especially through material innovation to help the development and application of a number of emerging digital technologies such as 5G, artificial intelligence, quantum information, and the Internet of Things.

　　In the field of life sciences, China is the second largest biopharmaceutical market in the world. Driven by factors such as policy support, aging population/chronic diseases, and epidemic challenges, China's biopharmaceutical market has huge potential and will remain a golden race in the future. one of the ways.

Solving tough problems in life sciences is the goal of Merck Life Sciences through deep collaboration with the scientific community.

　　In recent years, Merck Life Sciences has continuously expanded its global strategic layout, strengthened its own supply chain construction in China and the Asia-Pacific region, and actively cooperated closely with local partners and industry experts to effectively promote scientific research, improve drug development and biopharmaceuticals The quality and efficiency of production strive to provide a safe guarantee for obtaining accurate and reliable diagnostic and testing results.

Zhongxin Finance: At present, there are many changes in the global economic situation. Will these affect Merck's business in China?

How do you view the development prospects of China's economy?

An Gaobo:

In 2022, the global economic environment will become increasingly complex. Factors such as escalating geopolitical tensions and the resurgence of the new crown epidemic will put China and its enterprises under enormous pressure.

　　But now China is further accelerating the construction of a new development pattern, focusing on promoting high-quality development and promoting high-level opening up.

We believe that although the world's major economies are generally facing downward economic pressure in the short term, China's sustained development and opening up will inject strong impetus into the recovery and growth of the world economy, and provide substantial impetus for the long-term high-quality development of foreign-funded enterprises in China.

　　At the same time, we have also seen a lot of positive information in a complex environment.

For example, this year marks the 50th anniversary of the establishment of diplomatic relations between China and Germany, and the German government has recently released positive and friendly signals. German Chancellor Scholz said that globalization "makes a lot of prosperity possible", and Germany and the EU must work with other countries including China. Many countries trade, and many multinationals, including Merck, feel supported.

At the same time, the resilience of China's economy and the stable and positive trend in the medium and long term have also made many companies committed to sustainable development willing to work here.

　　Whether it is a country or an enterprise, there will always be waves of instability and change in the long river of development. We need to maintain a long-term vision, firm confidence, and commit to long-term development.

As a global company with a history of 354 years, Merck's long-term trust is built on unchanging commitments and actions. Merck's board of directors is unwavering in its investment

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　　Merck will continue to develop in the three major fields of life science, medical health and electronic technology, and continue to expand the scope of investment incubation based on the deep insight into the Chinese market demand, based on leading technology and oriented to digitalization, health, and green sustainability. And localized innovation efforts, continue to expand the business territory and potential areas in China, and cooperate with local innovative enterprises and government agencies.

　　We look to the future with curiosity, the future of science and technology, and the very future that can be deeply shaped in China.

(Finish)