Editor's Note: As China steps up efforts to boost domestic demand and drive consumption-led growth, multinational corporations are uniquely positioned to seize the opportunities presented by this transformative period. China Daily examines how these companies are aligning with China's new round of high-standard opening-up policies, embracing emerging tech innovation trends, and expanding their presence in a market that increasingly values high-quality development and upgraded consumption.

Q1 Driving domestic consumption is a top priority for China's economic growth this year. With the country placing greater emphasis on consumption-led development, how is your company adapting its products, services, or localization strategies to meet evolving domestic demand and shifting consumer preferences?

CHEN: China is in a transformative era, marked by opportunities driven by consumption-led development. As China will continue to represent more than half of the world's chemical production, this offers significant growth opportunities for Syensqo as a specialty company.

To meet the evolving domestic demand and to seize opportunities, we decided to develop Syensqo's new regional strategy, which emphasizes localization and partnership with local players. We have framed the strategy to enable a sharpened regional focus to design and deliver for China, with faster decision-making, more local empowerment and higher responsiveness to local customer demands. We will look for partnerships and strategic alliances, which will enable us to adopt a more "China-for-China" model for select businesses.

With our China headquarters in Shanghai, six industrial sites across the country, and a major research and investment center in Shanghai, which is the largest R&I center in Asia that works with all Syensqo end-markets, we are confident about shifting consumer preferences and contributing to consumption-led development with our local customers.

XIA: China's consumption upgrade is not only expanding market volume, but also elevating industry standards. As a global chemical company headquartered in Germany, Evonik's products serve as foundational enablers across diverse sectors, ultimately reaching consumers and benefiting from the expansion of market capacity.

We see extensive opportunities in rising demand for high-quality raw materials across sectors like healthcare, cosmetics, advanced manufacturing, and green mobility. For instance, our advanced materials for electric vehicle batteries enhance performance and safety, while bio-based active ingredients for cosmetics align with consumers' growing focus on safety, sustainability, and premium quality.

Localization remains central to our strategy. We have established joint development laboratories and R&D strategic cooperation in China in sectors such as battery materials, oil additives, and personal care products. These collaborations foster win-win outcomes by accelerating innovation and market application, driving value for both Evonik and domestic industries.

MACHADO: China's focus on domestic consumption benefits not only its economy, but also global industries like ours. At Suzano, we're responding by intensifying our focus on quality and sustainability — exactly what Chinese consumers now demand. This means we provide products that first, offer better functional properties for daily life, and second, meet growing expectations for environmental responsibility. Our Shanghai innovability hub embodies this dual approach, developing innovative bio-based materials with minimal carbon footprint. We're seeing particular success with our fully FSC-certified pulp products that enable downstream manufacturers to create more sustainable and premium tissue products. This aligns perfectly with Chinese consumers' increasing preference for eco-friendly options.

ZHAO: As a global pharmaceutical company, Astellas has been committed to the "in China, for China" strategy and wholeheartedly dedicated to providing high-quality innovative medicines and services to patients since entering the Chinese mainland in 1994. China has become one of the prioritized markets of Astellas, which has been included into the most early stage of Astellas clinical R&D. For instance, the world's first CLDN18.2-targeted therapy has achieved simultaneous development and approval in China, offering a new treatment option for China's gastric cancer patients.

Q2 "China Travel" and "Shopping in China" have become buzzwords among international visitors, fueled by China's unilateral visa-free policies for multiple countries and a new initiative allowing eligible travelers to receive instant tax refunds. How is your business planning to innovate and capture the momentum from this trend? Additionally, how do you view emerging opportunities in areas such as green technology, the low-altitude economy, smart manufacturing, and experiential services?

CHEN: Syensqo sees opportunities in green technology. The market demand for new frontiers of growth, such as electrification, lightweighting, advanced connectivity, more efficient resource utilization, which includes green hydrogen, higher quality of life, and more sustainable sourcing — have brought new opportunities for economic development and corporate development. With the development of green technology, I believe we will be able to see the country becoming a more circular economy, with performance excellence and environmental responsibility going hand in hand. The low-altitude economy is an emerging industry in global competition, with great development potential in China. We've seen that some companies have established research and development centers in China, dedicated to the design of electric aircraft and eVTOL. Compared to the traditional aviation market, the low-altitude economy's aircraft now extensively use new energy as the power source. This will allow companies like Syensqo to contribute by offering high-performance composite materials to lighten the aircraft structure and provide smarter and more efficient battery solutions.

XIA: The rise of "China Travel" reflects the growing dynamism of China's consumer market. While Evonik's products primarily serve industrial customers, we are well-positioned to support the industries benefiting from this trend. Looking ahead, green technologies are one of the key focus areas and align with our new innovation strategy, which focuses on bio-based solutions, energy transition, and the circular economy. For example, our bio-based surfactants enhance sustainability in personal and household care products, while our membrane technologies enable efficient green hydrogen production. In the emerging low-altitude economy, we are developing lightweight, durable materials for drones and urban air mobility vehicles, leveraging our expertise in aerospace composites. Ultimately, China's focus on high-tech, high-value industries creates a symbiotic relationship between consumption upgrades and industrial innovation. Evonik is committed to being a partner in this journey, leveraging our material science leadership to turn emerging trends into tangible progress.

MACHADO: China's expanded visa-free policies amplify its global appeal. I'm especially excited about the trial implementation of a 30-day visa-free entry policy for five Latin American countries including Brazil. While the policy was just announced, we anticipate it will significantly ease cultural and professional exchanges between our regions. At Suzano, we're particularly optimistic about how this could facilitate more seamless collaboration between our Brazilian experts and China-based teams in the future. As to emerging opportunities in AI and technology, we are deploying a local team to help us better leverage China's strength by incorporating Chinese technology into our operations in China and across other regions. For example, we aim to explore how drones could be used in smart forestry, coupled with AI, to further enhance the productivity of our plantations in Brazil.

ZHAO: These buzzwords reflect China's firm determination in furthering its high-standard opening-up that fosters a favorable business climate for multinational companies like Astellas. As a global pharmaceutical company that entered the Chinese mainland in 1994, Astellas has been a beneficiary of China's reform and opening-up, particularly intensified reforms in its regulatory framework such as the accelerated review and approval system for innovative drugs. We have, therefore, not only accelerated to address unmet medical needs in China with our innovative solutions, but also increased our investment in China with upgraded corporate structure and strategy in the country. With regard to the healthcare industry, Astellas is bolstered by China's emerging opportunities like green technology and AI, alongside increased medical needs for high-quality innovative solutions, and we are optimistic about our long-term and sustainable development in China.

Q3 AI and digitalization are rapidly transforming industries across the globe. How are your China operations incorporating these technologies to boost efficiency, improve customer experiences, or unlock new revenue streams in light of the country's push for "new quality productive forces"?

CHEN: China has evolved from a leader in capacity to a leader in capacity and innovation. AI will play an important role in accelerating the transformation.

At Syensqo, we have a digital plan that relies strongly on the adoption of artificial intelligence as one of the levels to increase productivity, innovate more and identify new ideas. We see tremendous opportunities for using AI to advance innovation. AI enables engineers in the labs and in the plant to look at bigger and more complex scientific or mathematical problems, and to bring up solutions which are more universal and have a bigger impact.

It's absolutely clear to us that, more and more, we need to have AI as a partner for our researchers. It is not a replacement, but a partner for our researchers. And this is accelerating strongly in Syensqo China research and innovation center where we have utilized AI to create modular tools for analysis, testing, quality control and product solutions optimization. We are investing in an Al laboratory in the research and innovation center in Shanghai.

XIA: We see opportunities from AI integration across various facets of our operations. We are incorporating AI to refine our R&D processes, optimize supply chain logistics, and enhance customer service experiences. Our digital tools, like the energy management system DEnMS, utilize smart sensors and AI analytics to monitor energy metrics across 80 percent of our Chinese production sites, driving energy efficiency and cost reduction while supporting China's dual-carbon goals.

For customer experiences, platforms like COATINO for the coating and ink industries provide formulators with tailored AI-driven tools and resources, facilitating efficient and informed decision-making. Internally, our secure GPT-based AI tools allow employees to automate daily tasks, boosting productivity while safeguarding intellectual property.

MACHADO: AI technology is transforming industries globally, and Suzano is already exploring the integration of AI into our operations to enhance efficiency, optimize supply chains, and improve customer engagement. For instance, Suzano developed Tetrys, which is an AI tool to determine the right seedling clones to be planted in every specific region where we operate, to ensure higher productivity, less use of inputs and chemicals, as well as protect the forest from pests and diseases.

We also use geospatial intelligence products for yield prediction, water resource and risk management, carbon measurement and verification, forest certification, and supply chain optimization and traceability. But there is so much more yet to be explored and China has a lot to offer. China's rapid advancements in AI and other breakthrough technologies are impressive. We are keen to learn from China and bring the technologies that China has been developing to our operations not only in China, but also in other regions.

ZHAO: Astellas is leveraging artificial intelligence and digital technologies to optimize R&D and patient services, adhering to a "patient-centric" philosophy. With AI, we could immediately reduce the search time by up to 90 percent compared to the previous process. We have also been able to identify highly active compounds more quickly by repeating the process of using the AI activity prediction model to design compounds in the short term.

In China, we have launched a website of Claudin 18.2 pathological center for medical education to enhance pathologists' diagnostic capabilities. Recently, Astellas China, in collaboration with JD Health, officially launched the "Astellas Pharma JD Flagship Store," marking a significant step for Astellas China's digital progress.

Q4 China is stepping up efforts to promote high-end manufacturing, the digital economy, and upgraded services. In this context, is your company planning to increase investments, establish new partnerships, or expand R&D capabilities in China? What are the core objectives of your long-term strategy in the Chinese market?

CHEN: As the Chinese chemicals market is projected to continue its growth over the next 8-10 years, Syensqo sees opportunities in contributing to the high-quality development of China with green initiative as a major driver. We will continue investing in clean energy infrastructure and research and development, which enable us to provide innovative sustainable solutions that help industries lower emissions through electrification, lightweighting, advanced connectivity, resource efficiency, improving quality of life and sustainable sourcing. There will be plenty of opportunities to grow for an innovative company in China as we have a strong partnership pipeline in active discussions with local companies, which will enable Syensqo to maximize our R&I capabilities and localize the supply chain. We believe our business operations, with a more focused strategy targeting the local region, will bring us more opportunities and lead to faster and more impactful decarbonization along the Chinese path to promote high-end manufacturing, the digital economy, and upgraded services.

XIA: China remains a cornerstone of Evonik's global growth, and we are proactively expanding our footprint with a particular focus on sustainability across sectors such as e-mobility, renewable energy, and healthcare. These efforts align with China's ambitions toward high-end manufacturing and an enhanced digital economy. Notable projects for production capacities include our specialty-grade hydrogen peroxide plant in Sichuan province's Leshan, which supports industries such as solar panels and semiconductors, as well as the specialty amines production expansion in Jiangsu province's Nanjing, which caters to construction, automotive, and furniture sectors.

Key initiatives in R&D include establishing a medical device solutions center in Shanghai, serving as our largest hub for Asia, and opening innovation centers like the Asia Skin Research Center for personal care industry, high-performance material application center for EV industry, and Hydrogen Competency Center for green hydrogen. Through these strategic expansions and partnerships, Evonik aims to play a significant role in supporting China's progress toward high-quality industrial and economic development.

MACHADO: Our China investments follow four clear pillars. First, customer-focused investments to enhance their production capabilities with our bio-based materials. Second, R&D investments through projects at our Shanghai Innovability Hub, aiming to expand market applications and improve product sustainability. Third, developing Chinese suppliers — we're systematically identifying high-quality manufacturers to join our global supply chain, leveraging China's strong equipment manufacturing base. Fourth, financial ecosystem engagement, building on our landmark Panda Bond issuance to explore new sustainable financing tools. Each pillar reflects our long-term commitment to China and belief in mutual growth opportunities. The supplier development is especially strategic — we've found Chinese manufacturers often offer both technological sophistication and competitive pricing. Similarly, China's dynamic financial markets enable innovative instruments to support our green investments. These parallel efforts — strengthening local partnerships while integrating China into our global operations — demonstrate how we're growing with China's economy while contributing to its high-quality development goals.

ZHAO: Having deeply cultivated the Chinese mainland market for over 30 years, Astellas is committed to long-term development in China, by strengthening local collaborations and accelerating the introduction of innovative products to China. In 2021, Astellas China completed an organizational upgrade, establishing our regional headquarters in Beijing. Astellas has continually deepened its strategic partnerships with local partners, such as Baheal and Elpiscience. Recently, Astellas announced a strategic cooperation with Shanghai Pharma, further expanding its local collaboration ecosystem.