What business leaders are watching at CIIE: Part II
Jan Rinnert, Heraeus CEO
What are the highlights of your exhibits at the China International Import Expo? Are you launching any new products, technologies or solutions?
Heraeus is a leading international technology company based in Germany. We will focus on high quality sustainable solutions for the Chinese market and exhibit products for electric-mobility, renewable energy, circular economy in precious metals, and environment solutions. Especially air treatment is a major topic for us at the CIIE. We aim to be an effective partner in tackling air pollution problems with Heraeus solution of UV and catalyst technology that can help China industrial customers effectively, without the need of chemicals or high temperatures. We even equipped the system with digitalization tools, which enables our customers to monitor real time air quality as well. At CIIE, we want to test if online measurement adds more value to our customers and authorities alike. If customer interest is strong, we will set up a startup in China.
In terms of deals, what do you expect from the CIIE? Whom are you targeting?
As the first expo of its kind, I see the event as a good sign to strengthen trade liberalization and economic globalization. This development is particularly important as China wants to upgrade its industrial value chain within its national strategy in the coming decade. As a logic consequence, there will be an even stronger need for high-quality and highly innovative products and services.
Therefore when it comes to innovation – besides our variety of existing and potential Chinese customers –, we expect to get in touch with Chinese startups, entrepreneurs and universities. Especially Chinese startups are some of the world's leading technology innovators. Co-operating with these young entrepreneurs has an enormous potential for creativity and business development for us.
Do you think the CIIE could eventually help drive the development or upgrade of the industry your company is in, and your company's strategy in China?
Yes, of course. Let me give you one example. Heraeus is a strong partner for the fast growing electronics industry in China. Telecommunications, particularly in mobile use, is a growing trend as well as the nationwide expansion of 5G. We are supplying various materials and technologies for 5G technology. By doing this, we already have become the largest manufacturer for contact materials for the semiconductor industry in China.
As you can see, we expect great opportunities in the upcoming years. Thus we believe the trade show will get us a lot of inspirations to further fine-tune our roadmap for China that leads to more successful and sustainable growth.
What's your view on China's pledge to further open up its markets to foreign companies? How would that benefit your business? Any specific examples?
I welcome China's pledge to further open the markets to foreign companies. International studies have shown that great innovation, excellence and growth can only develop in a diverse and creative environment. This is not only true on a company level, but also on a national even global level. Therefore foreign direct investments into China might give a meaningful impact to the country's development. Only in the last four years we have increased our investments into China by five times. A prominent example is the most modern precious metals factory we just opened in Nanjing in September this year. We would even like to do more in all our businesses, especially into acquisitions or start-ups to expand our business and innovation capabilities in China.
What is your forecast for China's economy in the next three years? What key issues will you be watching for?
I expect China to continue to grow strongly. Growth rates around 6.5 percent still mean a doubling of the country's economy in ten years. Basis of this growth are various strategic initiatives China's government has put in place, for example the Road and Belt Initiative. But I also expect a lot from China's national plans to increase the quality in its value chain. There is still enormous potential for China's Start-up community and for economic growth through the development of digital transformation as such to bring more innovations from China to the market.
Ongoing trade disputes and limited market access for direct foreign investments might reduce the full impact on these initiatives. Still, China will stay one of Heraeus' core-business countries in the future.
