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China instills confidence for growth

By WANG KEJU | China Daily | Updated: 2025-03-26 09:59
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China has instilled global enterprises with greater confidence as the world's second-largest economy has placed a high premium on technological innovation and opening-up at a time when the world is grappling with a confluence of challenges, said a senior executive.

"We see that the Chinese government's sustained emphasis is on transforming the country toward high-quality growth driven by new quality productive forces," Marc Horn, president of Merck China, told China Daily during the recently concluded China Development Forum 2025.

China has been focused on driving innovation through open collaboration, bringing in foreign direct investments and creating a playing field where multinational firms can bring their global expertise to China while also learning from the innovations coming out of the country, Horn said.

"What is so unique about China's innovation ecosystem is the speed at which customer-focused technological solutions are being commercialized and scaled up, thanks to a well-integrated network of local partners along the industrial chain," Horn said.

The recent success of Chinese artificial intelligence startup Deep-Seek, which has captured global attention, is just one example of the country's thriving tech companies that are poised to shape the digital and AI landscape, Horn noted.

"We believe that AI will have a big impact on our R&D, innovation and production processes," Horn said. "If you're trying to find the best potential combination of many chemicals and molecules to generate a new product, that's where AI can help us a lot."

Over the past decade, Merck has deeply integrated itself into the country's innovation ecosystem through partnerships and investments, establishing manufacturing, technical services and R&D facilities mainly in Shanghai, Beijing and Jiangsu province.

"When we talk about investment now, it's not only about traditional capital expenditures. What we really try to do is to invest in people, talent and local partnerships, tapping into the wealth of knowledge and creativity within China," Horn said.

China's ongoing efforts to advance high-standard opening-up and foster a more enabling business climate have also anchored the confidence of global firms like Merck amid rising external uncertainties.

Regardless of how the international landscape may evolve, China will unwaveringly push forward with high-standard opening-up, and create a world-class, market-oriented and law-based business environment, said Han Wenxiu, executive deputy director of the Office of the Central Commission for Financial and Economic Affairs.

"Fair and equitable competition" is most important for foreign companies to have success, Horn said. "We really appreciate what the government has been doing over the last couple of years."

"China is now looking at opening-up in sectors such as telecommunication, healthcare and hospitals. I do think that will encourage more companies to come to China and collaborate with local companies," he said.

Marc Horn
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