News Information

Optimize the layout of industrial and supply chains

This year's Government Work Report proposed to expand high-level opening up to the outside world and actively stabilize foreign trade and foreign investment. Cross-border cooperation has become one of the important ways to stabilize foreign trade. This year, chemical enterprises have been accelerating the optimization of their international cooperation layout in the industrial chain and supply chain, and cross-border mergers and acquisitions have been booming.

Cross-border and cross-industry mergers and acquisitions are on the rise

At present, an increasing number of chemical enterprises are participating in international market competition. Many of them have initiated cross-border and cross-industry mergers and acquisitions this year.

On March 10th, Amike, a company mainly engaged in biomedical materials, issued an announcement. Based on strategic planning and business development needs, its subsidiary Amike Hong Kong and Shurui Hong Kong jointly established Amike International, planning to invest 190 million US dollars in cash to acquire 85% of the equity of South Korea's REGEN Biotech, Inc. Amike stated that this transaction is a key move for the company to launch its internationalization strategy. The announcement shows that the target company is the first in South Korea and the third in the world to obtain the product registration certificate for polylactic acid dermal fillers.

On March 5th, Rainbow North America, a subsidiary of Runfeng Co., LTD., announced the establishment of a new production center in Champagne, Illinois. This strategic investment marks an important progress for the company in creating a full-chain supply chain solution for leading crop protection brands in North America. Tom Lyons, the general manager of Rainbow North America, said, "This move demonstrates our commitment to strengthening the supply chain of the crop protection industry in North America." By enhancing production capacity and logistics efficiency, we will assist our partners in achieving growth in an increasingly complex and urgently updated supply chain ecosystem.

Recently, Tiandingfeng, a wholly-owned subsidiary of Oriental Yuhong, officially announced that it will invest in building a base fabric production, research and development, and logistics base in Canada. This project is jointly invested and constructed by Tiandingfeng and its partners, aiming to further optimize the international industrial layout and enhance the company's full-chain service capabilities in the North American and European markets. Haitian Water Group Co., Ltd. also issued an announcement stating that it plans to purchase the relevant assets of the photovoltaic silver paste division of the German Heraeus Group through a newly established wholly-owned subsidiary. This marks that Haitian Co., Ltd. will cross over from water supply and drainage and waste-to-energy business into the photovoltaic silver paste industry.

Build the "Invest in China" brand

Building the "Invest in China" brand is a specific deployment made by China for stabilizing foreign investment. It is an important measure to innovate investment attraction methods and broaden investment attraction channels, and also provides a rare opportunity for foreign enterprises to achieve their own leapfrog development.

On March 7th, global coatings giant Jotun Coatings signed an investment intention letter for a high-performance coatings project with Zhangjiagang Free Trade Zone, planning to invest 200 million US dollars to build a project with an annual production capacity of 200,000 tons of high-performance coatings. Jotun Coatings stated that this investment will provide solid support for Jotun Group to consolidate its leading position in the industry, facilitate the agglomeration and development of the coatings industry in Zhangjiagang Free Trade Zone, and inject new impetus into Zhangjiagang's efforts to build an advanced polymer materials industrial innovation cluster worth hundreds of billions of yuan.

On March 4th, Shanghai Henkel, a subsidiary of German consumer goods giant Henkel, announced that it had completed the acquisition of Suzhou Bok Biotechnology Co., LTD. Ma Muyang, the head of production Operations and supply chain for Henkel Consumer Brands in Asia, said, "This acquisition is an important strategic move for Henkel to deepen regional development and strengthen its supply chain." China holds an important position in the production layout. He pointed out that after the acquisition of Suzhou Bok, it will further promote the development of Henkel's consumer goods business in China, ensuring that it can meet the constantly changing market demands with greater flexibility and efficiency.

From these trends, it is not difficult to notice a common tendency - many forward-looking foreign enterprises are leveraging the industrial chain advantages of "Made in China" to increase investment and expand production in China at a rapid pace, promoting the quality improvement and upgrading of their own production capacity and R&D levels. Data shows that in 2024, 59,000 new foreign-invested enterprises were established in China, an increase of 9.9% year-on-year. "Going to China" is becoming a consensus among an increasing number of foreign enterprises.

The open policy is inspiring

Foreign investment is an important force in participating in the modernization drive with Chinese characteristics and promoting the common prosperity and development of China's economy and the world economy. This year's National Two Sessions continued to send out clear signals of expanding high-level opening up to the outside world, and also became a hot topic among many executives of multinational companies.

Zhou Xiaolan, Executive Vice President of Bayer's Prescription Drugs Division and President of Bayer China, said, "This year's Government Work Report proposed to expand high-level opening up to the outside world, and the '2025 Action Plan for Stabilizing Foreign Investment' was also recently released. All these have made us fully feel the policy benefits for the development of our business in China." On March 3rd, Bayer launched the Bayer Yizhuang Open Innovation Center located in the Beijing Economic-Technological Development Area. This is the first innovation center that Bayer Healthcare has set up in China. In recent years, China has introduced measures such as easing market access, strengthening intellectual property protection, optimizing the business environment, and promoting talent exchanges, which have opened up broader space for Bayer's development in China. We are very optimistic about the development potential of the Chinese market and will continuously deepen local cooperation and keep promoting innovation in China. Zhou Xiaolan said.

Zhou Tao, President of DSM Firmenich China, said that this year's National Two Sessions have sent out a clear signal of vigorously boosting consumption and developing new quality productivity in accordance with local conditions. The Chinese government's continuous activation of the consumer market and promotion of the integration of technological innovation and industrial innovation have provided DSM - Firmenich with a broader space for business development in China. In 2025, the company plans to continue to increase its investment in China to further meet the growing demands of Chinese customers and the consumer market.

This year's "Report on the Work of the Government" once again emphasizes the significance of opening up to the outside world. A series of specific measures will promote China to further expand high-level opening up. The implementation of relevant policies and measures will provide a broader space and a more positive environment for foreign-funded enterprises to invest and operate in the Chinese market. Ji Dejiang, president of Ritt Consulting Greater China, said.