Editor's Note:

As the 18th National Congress of the Communist Party of China, which opened on Nov 8, continues in Beijing, China Daily asked a number of top executives from international companies to give their impressions of the event and their expectations for the country. We asked five questions, and the answers we were given showed great confidence in China and its business environment under the country's new leadership, set to be elected at the congress.

And, while growth in China is slower than what we have historically seen, we believe it will still outpace the growth of developed economies. This does not change Greater China's position as an important part of Dow's strategy. However, the addition of new capacity to support growth will always be managed to deliver the product supply when needed, as is the case in all other global markets.

There continues to be demand for advanced solutions and products in China, and Dow is well-positioned to deliver these through our exposure to diverse end markets, as well as exposure to resilient and varied growth sectors including packaging, water, automotive, agriculture and electronics.

Dow continues to move ahead with growth initiatives in China, and we continue to carefully evaluate timing of these investments to match market needs. However, the broad direction remains unchanged. Domestic demand in China is closely linked to economic and social reforms, and we hope to see significant progress during the period of the 12th Five-Year Plan (2011-15).

We have seen a significant slowdown in demand in 2012. We do expect a mild improvement in 2013 but think this will be only gradual, and this assumes no further global economic "shocks" which we cannot rule out.

The chemical industry reflects the broad economic base of the country, as we are a key supplier to many key industries - a number of which remain quite challenged. For the chemical industry to achieve its full potential, we need to see a broad-based economic recovery versus one more narrowly driven by government-sponsored infrastructure projects.

We believe the major priority should be a smooth transition of leadership, and a strong commitment to implementation of the 12th Five-Year Plan together with ongoing economic and social reforms.

We believe that the emphasis on driving "quality" of economic growth versus just "quantity" is a key principle which should continue to be emphasized.

The commitment to greater innovation and nurturing value-added industries will benefit Dow and many other multinational businesses to do business in China.

-----Peter Sykes

president of The Dow Chemical Co Greater China

China's economy is stabilizing, and will hopefully progress through the crisis toward stronger growth, driven by huge domestic demand. For the next decade, the Chinese economy will surely sail ahead quickly yet steadily and reach the shore of a brighter future.

I'm happy to see that some promising markets in China are growing rapidly with the support of an "invisible hand", such as healthcare, new energy, automobile and environmental protection. 3M has set foot in all these areas and has unbounded confidence in the Chinese economy.

"Geographic expansion" is one of the key strategic pillars for 3M in the next five years, which is designed based on our business performance and our perspectives to local markets.

3M is a company driven by innovation. Our investment in innovation is the cornerstone for business in the future. We will consistently invest in research and development, with $120 million in the next five years.

If you ask aCEOof any multinational company which is the most important country besides their home nation, it must be China. At 3M, we are here in China and for China.

The third-quarter profit of 3M was up 6.7 percent as margins widen. In China, we are expecting growth of more than 10 percent this year, a little bit slower than for the past 10 years. A diversified business strategy gives us an edge over our peers.

We are dedicated to capacity expansion in China, and our compound annual growth rate is expected to reach 15 percent to 20 percent in the next five years.

Each coin has two sides; diversity is a case in point. We gained tremendous benefits from our diversified business portfolios, but sometimes it may weaken your brand proposition. You can't describe 3M in a single word nor count out our 69,000 products one by one.

I'm not a savant on politics but what I can tell you is that China's economy is at the stage of a soft landing.

I'm confident China's economy will pick up in the first or second quarter next year, with the new leadership and recently announced government investment plans.

We hope the new leadership can further encourage wholly owned foreign enterprises to invest in China, with favorable policies, and allow foreign direct investment in those State-owned sectors that were closed to us previously.

----- Kenneth Yu

president of 3M China Region and CEO of 3M China

China is, and will continue to be, one of the world's most important growth engines. The GDP growth rate is only one of the growth indicators. We believe China is heading in the right direction by balancing the quality of growth better.

In this year's global economy, to keep growing in the range of between 6 percent and 8 percent is healthy and already the highest rate in the world. For a life sciences and materials sciences company like DSM, China will continue to be the center of our strategy for many years to come.

China is in an important phase of its development, with an improved legal and social system to benefit people's living standards. In this way, the country is creating more favorable domestic markets.

With growing needs for high-quality products and solutions on nutrition, health and new materials, China has become an even more important market for us and we will continue to expand our investment in the country to serve local needs.

Many companies might face bigger challenges this year in terms of business performance, which is a reflection of the external business environment, but we still have strong confidence in the next five years of business and in our ability to achieve profitable growth overall.

The entire chemical industry in China is facing a great challenge of transforming from excessive capacity expansion to a green and sustainable development approach. We have to focus even more on achieving a balance between people, the planet and profit together, and that requires more cross-boundary cooperation between governments, local and multinational companies and non-governmental organizations.

Our biggest concerns relate to research and development and technological development, and we have seen examples where people don't respect intellectual property rights, and companies which don't pay enough attention to technological development.

We expect the new leadership to focus more on innovations and technological development rather than capital investment.

To achieve sustainable development, Chinese companies are encouraged to report to their stakeholders not only their financial achievements but also their accomplishments in terms of environmental and social performance.

-----Jiang Weiming

president of Royal DSM China and corporate vice-president of DSM

PayPal will remain committed to China, one of our most important and fastest-growing markets worldwide. Despite the current economic slowdown, PayPal still sees huge potential and opportunities in China.

Within our own PayPal Chinese SME (small and medium-sized enterprise) Export Survey Report, we found that although up to 79 percent of export-related Chinese SMEs believe the global economy will slow down or stay the same, seven out of 10 export-focused Chinese SMEs still expect to grow their sales in the next three months.

In fact, according to the report, e-commerce exports via PayPal's global payment platform from Greater China to overseas markets saw big double-digit growth, from 23 percent to 96 percent, from July 1, 2011 to June 30, 2012. By contrast, China's overseas shipments only increased by 7.8 percent in the first seven months of 2012, according to China's General Administration of Customs.

PayPal believes cross-border e-commerce will be a successful formula for China's SME exporters, especially when its overall export growth has experienced a decline over the past quarters.

With traditional foreign trading models reaping increasingly lower profits for merchants, cross-border e-commerce is being seen as having great potential for growth, and has opened numerous new opportunities for local merchants to extend their reach beyond the China market.

Being a global e-commerce and payment leader, PayPal is helping Chinese merchants, most of which are SMEs, sell to 117 million active PayPal users in 190 markets worldwide conveniently and safely and grow their online business around the globe.

Since entering the China market in 2005, PayPal has grown in Shanghai, Beijing, Shenzhen, Chongqing, Guangzhou and Hangzhou and opened its first regional operations center, based in Shanghai.

PayPal will remain committed to growing our business and expanding our investment in China.

In China, we are focusing on cross-border e-commerce. There are millions of export-oriented SMEs in China and cross-border e-commerce can provide them with a profitable channel to sell to overseas markets. We are deeply committed to enabling them to sustainably grow their online export business in a faster and safer way, sharing with them our 14 years of experience in enabling secure payments between millions of sellers and buyers on a healthy global e-commerce platform.

Looking forward, we are dedicated to bringing more global online payment best practice to China and exploring new business opportunities here.

In recent years, the growth of the global e-commerce market has made cross-border e-commerce a rising force in China's foreign trade sector, offering millions of enterprises with a brand-new business model to expand beyond the domestic market, compete globally and experience a leap in profitability.

PayPal believes cross-border e-commerce will be a silver bullet for China's exporters.

We are pleased to see the government has indicated its commitment to improving the overall business and investment environment.

We always believe that a transparent and open market, where participants are judged by merit and capability, not other restrictive measurement, will greatly enable all participants to maximize their potential and ultimately contribute to China's sustainable economic growth.

We would like to see the government continue its policy of opening up the market, with clear measurement in creating a favorable investment environment, and encouraging foreign participation in the areas of e-commerce and e-payment. We believe the role of government should be more than regulating the market, but facilitating and promoting foreign investment in the marketplace, too.

----- Alan Tien

General manager of PayPal China

Yes, we believe that China will continue to grow quickly in the coming decades. Although ChineseGDPfor Q3 is at a three-year low of 7.4 percent, it is still in line with expectations. For the first nine months of 2012, GDP has risen 7.7 percent and it appears as if China will meet the 7.5 percent target of 2012, as stated by the government. After 9.2 percent growth in 2011, the first two years of the decade are averaging 8.5 percent. If we assume 7 percent growth for the decade, China may become the biggest economic zone in the world by 2026.

China's lowered GDP is the result of many issues -- fast growth over past decades; the expected economic model upgrade; impacts from recent global financial crisis; and the backlog time required to consume the 4 trillionRMBplan of 2009. It is now believed that China's economy has bottomed out and will gradually recover, starting in the fourth quarter. New efforts are under way by the government not only to promote more investments in strategic industries, but also to reform the country's marketing mechanism, including liberation of interest rates and release of more market-entry constraints to non-state owned entities.

A stronger China GDP will fuel Agilent's growth. As the leading measurement company in the world, Agilent provides measurement equipment and solutions to a wide range of customers in diversified industries. Agilent has invested in China since the 1980s, and the country has remained a critical part of the company's strategy. With the ongoing development of the China market, China is now Agilent's second largest market. We are optimistic about China's long-term growth and maintain our commitment to develop business here.

We have seen some challenges in China in 2012, but we believe these are temporary and we are confident in China's long-term growth. With the consistent growth of China's economy over the past 30 years, it will be critical for China to focus on promoting technology and converting its economic model. Labor costs will increase in China's coastal areas and it will be necessary for the government to encourage the high-value modern services industries. However, for the middle and western areas of the country, labor costs are still low and China is transitioning more labor-intensive industries there. Because of its expansive market, China has the ability to introduce phased-in economic reform, upgrading the industry in coastal areas, while supporting stable incomes from traditional industries in middle and western areas. With more investments in the developing areas in China, the domestic consumption will be stronger.

Agilent has consistently invested in China with our long-term strategy and confidence in the China economy. Though labor costs are increasing, there is still a big gap to find the best talent in the labor market –people who are well-educated, with good experience and an understanding of the China market. Agilent's goal here is to attract and retain these employees.

Agilent continues to focus its efforts on R&D investment in coastal areas while investing in manufacturing in Chengdu,Sichuan province. We are expanding our sales presence to more cities and will move into the western areas to be closer to customers and capitalize on the opportunities. We believe there is no lack of opportunity in the country.

Agilent is uniquely positioned to serve high-tech sectors, including the seven SEIs (Strategic Emerging Industry) that have been identified as drivers of China's quality economic growth. Our customers in Food Safety, Environmental Protection, Biotechnology, Diagnostics and Genomics, Telecommunications, and Electronics have continued to invest in building world-class test Labs and R&D facilities, which offer large market opportunities for Test and Measurement equipment suppliers. We have seen strong market performance across all industries that we are in for the past decade, including 2012.

Because China is committed to upgrading its industrial structure, pushing for quality economic growth, and eventually raising the standard of living, we believe that the Chinese Government will invest more in future years to boost those industries. This will create promising market and investment opportunities for multinational companies such as Agilent. Our conservative forecast for the growth of the high-tech cluster in China is at high double digits throughout next five to 10 years.

Rather than a "concern" it may be more a "challenge"; it is the availability of high-quality talent.

As our China business has grown, along with customer expectations, we are in need of the best talent. Highly qualified people, with working experience in a global organization, are not easy to source in the market. It takes years to develop them, and then retention becomes the next challenge.

"Deepening Reform" is a well-known slogan in China. We believe it is not just a slogan, but will result in concerted actions.

Market economyreform has led China to become "an economic miracle" in the world in the past 30 years. Going forward, balancing an open market with reasonable government control is key to continuing this economic growth.

China has already become a major player in the world economy. We expect China can play an even more important role in the recovery of the world economy and in resolving worldwide issues.

----- Huo Feng

President of Greater China, Agilent Technologies

The slowing growth pace spares room for economic rebalance and I believe the entire economy will keep on growing steadily in the next few years.

As an emerging market, in 2011 Bosch China contributes around 10 percent revenue to Bosch Group. Considering huge market potential, the government encouraging policies and favourable investment environment in China, Bosch has full confidence of China market to remain as Bosch's third biggest market globally and largest market in Asia by strengthening "local for local" strategy.

Bosch came to China not for its cheap labor cost in the first place, we are here for the huge market and potential. Following 'Local for local' strategy, Bosch will still matitain an annual investment of around 3 billion yuan in China not only in coastal area where our business first set up, but also the western regions where Chinese fast growing economy indicates and China's government agenda lies in.

Some examples In 2012 could be shared: aligned with China's 'Go West' strategy, Bosch Chassis Systems Control, Power Tools and also Packaging Technology all open new plants in chengdu. In Qingdao, Bosch invest some 1.6 billion yuan for establishing Bosch's second manufacturing site of diesel technologies in China. And recently, Bosch opens a new plant and R&D center in Changsha with 700 million yuan investment.

Generally, the Chinese economy is slowing down this year and of course, this affects some of our business as well. But we are confident that the overall economic growth will maintain a moderate growth rate in China in the next few years. In this condition, we are expecting to outperform the market and industry growth.

This year in automotive industry, Passenger Car market enters into single-digit growth era and Commercial Vehicle market is experiencing a particularly sharp drop in demand. This affects our business division related to commercial vehicle market in particular.

Talents are always what we concern most in a market. Professional talents are the fortune of a company and also the momentum for company's sustainable development in a local market.

As a diversified B2B company, Bosch China not only focus on business management talents, but also endeavours to cultivate high-skilled industrial workers to cope with increasing labour need from Bosch's business development in China.

Based on Germany's "dual-system" mode of occupational education and its syllabus, Bosch China launched several "Apprentice Occupational Education" programs aiming to cultivating excellent "blue-collar" talents in cities like Beijing, Suzhou and Nanjing. Besides, Bosch also commits to support several vocational schools in poverty-stricken areas via BCCC's (Bosch China Charity Centre) effort in charitable ways.

We think sufficient and effective communications between business players and government authorities, e.g. SA FE, Tax authority, customs, etc, will help foreign business players to better understand policies and process, and thus help business operations.

Nowadays, governments and industries are making a combined effort to save energy and reduce emissions while driving steady growth. There are regulations and plans in emission reduction and environment come into effective in recent years, which shows government's determinations.

For example, CN4 regulation is going to be releases in next July. However, beyond the regulation itself, we would highly appreciate strict implementation and monitoring according to these regulations and laws. We also hope the new leadership will consider the incentive program to the diesel passenger cars to help achieve the task of reducing the energy consumption.

----- Yudong Chen

President of Bosch (China) Investment Ltd

I think the Chinese economy has entered a stage of strategic restructuring, which means that while it used to depend on export and investment, growth is now driven by domestic consumption dictated mainly by people's livelihood needs. Satisfying these livelihood needs, including education, services and healthcare, is crucial to promoting social stability and harmony.

The Chinese economy will grow at a slower rate, but still at a rate exceeding 7 percent, making it the second largest economy. Healthcare reform in China has made considerable progress over the past three years, as health insurance now covers more than 95 percent of the population and reform is accelerating at county-level hospitals, and now the reform is entering the crucial stage.

Urbanization is speeding up in China, people are making more money, the Chinese population is aging, chronic diseases are becoming more prevalent, and people are paying more attention to healthcare. It is for all of these reasons that BD China will play an increasingly prominent role in BD's global strategy and that China will remain one of the most important markets for BD in the next five years.

It is true that labor and operation costs are increasing in China, and that domestic consumption is slowing down in many industries compared to several years ago. Infrastructure construction, real estate and upstream industries, in particular, have been hit, while inconsistent performance has been reported for fast-moving consumer goods, automobiles, energy and even luxury goods. The only exceptions are the healthcare industry and tourism which are on a steady climb.

For precisely these reasons, we believe that the healthcare market in China is still full of opportunities, in light of which BD Global will not postpone or cancel any investment in China in the short run. On the contrary, BD started building a new manufacturing site in the Suzhou Industrial Park in May of this year.

With an accumulated investment of 200 million yuan and initial investment of 80 million yuan, it will be BD's third manufacturing site in China. We also plan to set up our R&D center in China in 2013 to develop products that will better meet local needs.

We expect China to contribute even more in the above three areas in the next five years. Compared to that in Europe and the US, the medical devices industry in China accounts for a small percentage of total healthcare spending and therefore has great growth potentials.

Moreover, under the healthcare reform, we are seeing increasing investment in the infrastructure of healthcare institutions and other progress that I just referred to. So I believe that the medical devices industry should be able to maintain a growth rate of above 15 percent in the next five years. We are expanding our marketing team in China, building a nationwide distribution network, and investing in new plants and R&D centers.

The lack of transparency in new product registration and market access. Government protection of domestic enterprises.

For example, in diagnostics, there are no good standards for the diagnosis of many diseases, and as a result, many diagnoses right now are differentiated by their costs, and end up being inaccurate, delayed and inconvenient and eventually affecting the patients' quality of life and adding to the country's healthcare costs.

So I think the priority for the medical devices industry is to work with the government and academic community to improve standards in every relevant field and enhance the overall healthcare quality.

----- James Deng

vice-president of BD and general manager of Greater China

member of BD World Wide Operating Committee