China has an ambitious method to become a global leader in creativity and technology, and that may potentially bode perfectly for German multinational firm Merck.
The company is probably the leading brands in science and technology and does indeed business across three sectors: health care, lifestyle science and performance supplies.
The latter two sections help to make Chinese companies more competitive, Merck Chairman and CEO Stefan Oschmann told CNBC on Thursday on the sidelines of the Fortune Global Forum in Guangzhou, China.
“For instance, we will work with Chinese start-ups or perhaps larger biotech companies in the manufacturing method and the research method,” he said. “Or we’re making supplies for Chinese electronics makers (and) display manufacturers.”
As a result, Oschmann said, Merck is in a “incredibly interesting place” in the rapidly developing Chinese market.
Earlier this year, industry watchers agreed that China was shedding its graphic as a region that copies tips from the West to become a tech and creativity powerhouse. At least one professional said Chinese companies were more and more innovating in extra hardcore technological areas.
When asked if China was becoming stricter toward foreign companies operating within the mainland, Oschmann said he was seeing “far more assertiveness and that is merely natural given the size of the marketplace and the value of China on the globe economy.”
He added that the Chinese government, and business companions, understand Merck’s value as a partner in helping to upgrade their industries in areas such as biotechnology and electronics.
One common gripe many foreign companies have with regards to doing business in China is around intellectual property theft. But recently, Beijing provides cracked down on intellectual residence rights violations incorporating corporate espionage and counterfeiting of well-known brands.