J&J optimistic about China's healthcare market
Alex Gorsky, Chairman and Chief Executive Officer of Johnson & Johnson [Photo provided to chinadaily.com.cn]
Q: What do you think of China's economic growth target at around 6.5% for 2017 amid the sluggish recovery of the global economy? What business opportunities do you see from sectors such as services, manufacturing and mining, which will be open wider to foreign investment?
A: We believe that the macro trends remain favorable for the long-term outlook of China's healthcare industry. Innovation plays the key role in driving long-term economic growth in China and globally. J&J is uniquely positioned to support an innovation-driven economy, to translate technological breakthroughs into tangible industrial outputs. J&J energizes the local innovation ecosystem by offering deep science, business model and market access capabilities that connect the region's innovations with the areas of greatest need. We are supporting the Healthy China 2030 Plan to develop healthcare capabilities and promote preventive care, strengthened health services and developing health-related industries.
Q: How do you assess the role of the Chinese market in your global business strategy and layout? What are your views on China's efforts and more preferential policies to further attract foreign investment? Do you plan to increase investment or expand your presence in the Chinese market this year?
A: We are guided by ‘Our Credo' values to serve patients and consumers everywhere there are unmet medical needs. The best part of my job and most rewarding part of my job is knowing what we do fundamentally helps people live longer, healthier and happier lives. The needs and wants of the people guide our investment in China as in the US, and more than 60 other countries. J&J has deep roots in China, and has continued to support the development of an innovation-driven economic growth model. Building on our 30-year presence in China, J&J is advancing a Healthy Society initiative in support of the nation's opportunity to lead the world to a healthier future.
Q: What business opportunities do you see as China promotes the Belt and Road Initiative? Have you participated in or do you plan to participate in any projects under the initiative? How do you think infrastructure investment can contribute to global growth?
A: We applaud the Chinese government's vision for advancing development through this initiative. We believe this forward-thinking initiative will be help Chinese companies to be more innovative, thereby advancing economic growth. Innovation plays a central role in driving long-term economic growth anywhere on earth. Innovation promotes growth through several channels. It prompts capital investment, supports a growing, healthier and better-educated labor force, raises firms' productivity and spurs profound structural transformation of industry. Leading institutions have forecast that, by 2025, innovation will contribute 2 to 3 percentage points to China's GDP growth, accounting for 35 to 50 percent of total GDP growth.
Q: China will continue to carry out supply-side reforms this year. What do these reforms mean for your business and how will you adjust your business strategy in China accordingly？
A: We appreciate the Chinese government's efforts on supply-side reform, which calls for innovation-driven development enlarging the supply of high-quality products and services. We believe what we have been doing in China is in alignment with the concept of 'supply-side structural reform.' J&J energizes the local innovation ecosystem by offering deep science, business model and market access capabilities to connect the region's innovators with the areas of greatest need. J&J has a legacy of translating technological innovation and medical science breakthroughs into industrial outputs that address the needs of patients and consumers wherever we do business.
Q: What is your opinion of China's effort to upgrade its manufacturing capabilities and boost innovation? Will China's innovation-driven campaign spur the vitality and competitiveness of the economy?
A: We believe that innovation is the most important ingredient in creating new growth, so we are very optimistic about China's economic prospects. We believe that the macro trends -- a large population, urbanization, growing middle class, demand for healthier lifestyles and care choices -- remain favorable for the long-term outlook of China's healthcare industry. We appreciate the Chinese government's efforts to promote innovation and are eager to support the building of an innovation-driven economy in China.