Merck sees perfect elixir in China mkt

Merck, a Germany-based science and technology giant, sees growing opportunities for long-term growth and innovation collaboration in China, its top executive in the country said, highlighting China's economic resilience and growing role as a source of global innovation.

"China's market not only absorbs innovation, but accelerates it," Rogier Janssens, president of Merck China, said in an exclusive interview with China Daily.

Janssens said first-half economic data reinforced Merck's confidence in China's long-term prospects, pointing to solid momentum in high-end manufacturing and resilient trade in high-value-added products.

China's GDP grew 4.7 percent year-on-year in the first half to 69.57 trillion yuan ($10.3 trillion), while value-added output of high-tech manufacturing rose 13.3 percent, according to data released by the National Bureau of Statistics in mid-July.

"The strength of the numbers did not surprise me. To gauge China's economic resilience, one must look beyond headline GDP figures and identify where growth originates."

New growth drivers, represented by high-end manufacturing, the digital economy and modern services, contributed more than 40 percent of the country's economic growth during the period, the NBS said.

"In a market of this scale and competitiveness, good ideas do not merely endure — they become world-class," Janssens said.

The momentum is particularly evident in innovative medicines, which, together with AI-related products and robotics, make up China's "next new three" — high-value products representing a new stage in the country's export upgrading.

Chinese companies completed 81 innovative drug out-licensing deals in the first half, with their combined potential value reaching about $110 billion — a record high and equivalent to around 80 percent of the total deal value for all of 2025, said the National Medical Products Administration.

An April report by Deloitte said China had evolved from playing a supporting role in the global biopharmaceutical ecosystem into an innovation leader, with the shift underpinned by regulatory reforms, top-tier talent, cost advantages and a large, diverse patient population.

China now has the world's second-largest biopharmaceutical sector and accounts for about 31 percent of the global innovative drug pipeline, the report said.

"China is no longer merely a destination for global innovation; it has become a significant source of it," Janssens said.

He attributed the shift to the country's pool of scientific talent, complete industrial chains and closer collaboration among companies, universities and research institutions, which enable discoveries to move more rapidly from the laboratory to commercial-scale production.

For Merck, this means going beyond bringing technologies into China to jointly develop solutions with Chinese partners for both domestic and global markets.

China's expanding semiconductor sector is also generating demand for advanced materials, a core area of Merck's electronics business, Janssens said, describing the country's industrial ecosystem as "unmatched".

The country's manufacturing breadth, depth, infrastructure and improving services for foreign investors further strengthen its appeal, he said, adding, "China is not only competitive, but essential."

These advantages underpin Merck's long-term confidence in China, Janssens said. The company has invested nearly 7 billion yuan in China over the past 10 years, which is now its second-largest market globally.

Recent investments include the expansion of high-purity reagent production capacity in Nantong, Jiangsu province, and the upgrade of its M Lab Collaboration Center in Shanghai.

For Janssens, Merck's approach captures the essence of "China Opportunity 2.0": China is not only a major market for multinational companies, but also a shared growth platform where they can work with local partners to develop solutions for both domestic and overseas' markets.

After more than 93 years in China, Merck sees growing alignment between the country's development priorities, global business needs and its own capabilities, Janssens said, adding, "We are not observers; we are growing together with China."

Contact the writers at zhangchenxu@chinadaily.com.cn