Editor's Note: This year marks a critical milestone as China concludes its 14th Five-Year Plan. To help in assessing the success of the process, we have asked multinational executives to share with our readers their insights about their business achievements in the past few years and further expectations in the years to come.
Q1 What are your expectations for the two sessions? Do you expect any specific policy measures for further deepening reforms and expanding high-level opening-up? What more should China do to create a more enabling business environment for foreign investors?
XIA: Evonik is one of the world's leading specialty chemicals companies and we have been doing business in China for more than 90 years. China's unwavering focus on opening-up has reinforced our confidence in the market. As we look forward to the two sessions — the annual gatherings of the National People's Congress and the Chinese People's Political Consultative Conference — we anticipate it will further solidify China's commitment to high-level opening-up and institutional reforms. In particular, we noticed that the recently released plan for stabilizing foreign investment has set a clear roadmap, and we expect the two sessions to prioritize its implementation through complementary policies. With China's steadfast focus on high-level opening-up, we look forward to contributing to this journey through innovation and sustainable partnerships.
MACHADO: The two sessions are a critical platform for shaping China's economic, social and development policies and there are high expectations for the sessions as the world faces multiple challenges in different dimensions. Suzano has been committed to China for more than 40 years, over which time we increased our trade, volume, operations and investments — both in China and with Chinese stakeholders. Particularly over the past three years, Suzano significantly increased its investments and presence in China, which is translated into different dimensions. Suzano is particularly interested in measures that promote sustainable development, green manufacturing and the circular economy. We are keen to see measures that can further boost demand and consumer confidence, which are important engines for the growth of our industry and others in China.
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OTRANTO: China's economic development has made it a key player in the global economy, which will continue to shape global economic growth and technological innovation in the years to come. In the two sessions, we expect to see policy measures that reflect China's strategic priorities for the year ahead, including support for the private sector, technological advancement and fiscal stimulus to navigate current challenges and promote sustainable growth.
DING: China's robust supply chain, favorable policies, dynamic innovation ecosystem and vast market potential provide significant advantages for our local operations here, much like for other multinational companies. We also look forward to a more open platform to strengthen supply chain collaborations and academia-industry partnerships. As a global company deeply rooted in China for over 40 years, 3M is committed to co-developing localized solutions that address challenges together with industry stakeholders, aligning our global capabilities with China's evolving priorities.
Q2 "New quality productive forces" is widely seen as key to helping China achieve industrial upgrade and "high-quality development". How can your company help cultivate such forces in China?
XIA: Innovation and green transformation are at the heart of China's high-quality development. With Evonik's latest innovative and sustainable solutions, we are helping to promote a green and low-carbon economy and contribute expertise to industrial upgrade. We have been enhancing product supply and reducing time-to-market, and continuously strengthening our R&D capabilities in specific technologies to support strategic emerging industries including electric vehicles, renewable energy and healthcare. We have established joint development laboratories and R&D strategic cooperation in China in sectors such as high-performance materials, oil additives and personal care products. These partnerships bring win-win results for both Evonik and domestic industries by driving innovation and accelerating market application.
MACHADO: Our pursuit of sustainable development through innovation well echoes the "new quality productive forces". We are committed to supporting China's industrial upgrade and high-quality development, with a focus on providing high-quality, renewable products that can serve multiple different industries, ranging from paper, packaging, hygiene, textile, fashion, energy and others, enabling downstream industries to innovate and grow with a lower carbon footprint. Some examples are our Ecolig lignin for the elastomer industry, the use of cellulosic fiber in the textile industry, replacing long fibers with Suzano's hardwood fibers in tissues, hygiene, packaging, paper, and fiber cement. These all enable the replacement of fossil-based materials, resulting in a lower final carbon footprint from end products.
OTRANTO: Fortescue and China share a strong track record of innovation, which is the basis for a continued beneficial partnership in the future. The biggest opportunity we see is working together to build a fully integrated green metal supply chain between Australia and China. This has the potential to provide massive economic and environmental value to both our countries by bringing together green sustainable mining, large-scale renewable power and green hydrogen to produce green iron metal.
DING: China's economy is at a crucial stage of high-quality development, with its manufacturing sector rapidly transforming. Material science, 3M's core competency, is the cornerstone that enables new technologies, business models and industries, and plays a key role in overcoming technological bottlenecks and fostering new productive forces. For over four decades, 3M has grown alongside China's economic development, continuously advancing R&D in materials and application solutions to help industries reduce costs and enhance efficiency. Looking ahead, 3M will strengthen local R&D and expand collaborative innovation with industry partners to provide expertise and solutions.
Q3 DeepSeek has been a buzzword and surprised the world starting this year. AI technology has been deeply integrated with various industries around the world. What opportunities do you foresee for your business from AI technology? What's your view on China's ability to sustain innovation in breakthrough technologies in the coming years?
XIA: China's unique combination of extensive market scale and advanced digital infrastructure equips it to spearhead the AI-industrial revolution. At Evonik, we recognize that AI technology is revolutionizing industries worldwide. We see opportunities from AI integration across various facets of our operations, business development, customer service and even R&D. For example, Evonik has collaborated with IBM Research Europe and the MIT-IBM Watson AI Lab to explore how AI can help accelerate the development and optimization process of materials. This innovation dramatically shortens the time required to discover and commercialize new materials or improve its performance, reducing development cycles from over a decade to just a few months.
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. Just as an example, Suzano developed Tetrys, an AI algorithm to determine the right seedling clones to be planted in every specific region where we operate. But there is so much more yet to be explored and China has a lot to offer. The country's focus and investments on innovation, coupled with its vast talent pool, position it as a global leader in technological innovation. We are excited to collaborate with local partners and contribute to China's innovation ecosystem. We are also 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.
OTRANTO: AI is one of the most transformative innovations that is reshaping industries worldwide — and now we're also seeing it revolutionize the mining sector. There's no doubt that it holds enormous potential to change the way we do business at Fortescue. By embracing AI, we are driving efficiency across our business, using data to predict outcomes and optimize performance. This means we're now able to track every step of our supply chain — from the extraction process right through to delivery at the final point of sale.
DING: The rapid advancement of AI technology not only aligns with society's growing anticipation of its applications, but also supports 3M's ongoing transformation and upgrading. We continuously integrate cutting-edge technologies to enable smarter and more efficient manufacturing. For example, our plant in the Shanghai Chemical Industry Park uses a self-developed digital platform to optimize energy management, and harnesses AI technologies to further enhance energy efficiency, reducing carbon footprints while improving operational performance. We are confident in the future of technological innovation in China, supported by strong R&D ecosystems and favorable policy frameworks. 3M will continue to deepen our local innovations and collaborations in China, co-driving high-quality, innovation-driven growth with partners across industries.
Q4 Driving domestic consumption is one of the top priorities for China to spur economic growth this year. How do you see China's potential to drive a consumption-led impetus for the economy? How will that affect your company's profitability this year?
XIA: China's shift toward a consumption-led economic model presents a multilayered opportunity and is redefining the entire value chain, emphasizing not just scale but value. By integrating our innovations into premium, green and digital ecosystems, Evonik is poised to turn policy-driven demand into sustainable profitability. We are dedicated to being both beneficiaries and enablers of China's trajectory toward high-quality consumption growth. The increasing demand from China's rising middle-income group for high-quality products — such as functional cosmetics, sports equipment and healthcare — necessitates the use of advanced materials provided by Evonik, such as bio-based ingredients, high-performance polymers and advanced bio materials. Green consumption transition such as green mobility has been boosting demand for EV battery materials, high performance lightweight materials, as well as energy-efficient and environmentally friendly additives for tires and interiors.
MACHADO: China has a vast and growing middle-income group, highly educated workforce, a robust research, development and innovation ecosystem and a critical manufacturing base. You couple those with top universities and high investments in education, science and technology — and policies and measures aimed at long-term development and prosperity — and you have a recipe for high-quality development. Given all the elements mentioned earlier, I see all the reasons to be confident that China will achieve its objectives. China's focus on driving domestic consumption is a strategic move and that will benefit the whole economy, not only in China but way beyond its borders, including the industry Suzano operates in.
OTRANTO: The government's targeted fiscal policies and incentive programs to stimulate consumer spending will likely push domestic consumption upward. There's also growing consumer interest in green, sustainable products which could see significant growth — green iron metal being just one example. China is well placed to encourage consumption growth, which will likely positively impact steel demand and iron ore consumption. In terms of Fortescue's profitability, we have longstanding relationships with our customers in China and our product is in strong demand. Our focus remains on the things that we can control — safety, production and cost — and in these aspects, Fortescue is positioned very strongly.
DING: China's recent implementation of a robust stimulus policy package, which includes targeted measures to boost consumer spending, will create significant opportunities for global businesses seeking to tap into the vast market and support the shift toward a consumption-driven growth model. I think our consumer business will benefit directly from the initiatives of consumption-led impetus. Moreover, our expertise in advanced materials science enables us to support diverse industries, benefitting from the expansion and upgrading of consumer demand in China. As a firm believer in the "local for local" approach, more than 85 percent of products 3M produces in China are consumed within the country. Through innovations in materials science, we aim to meet the evolving needs of Chinese consumers, aligning with public expectations for a smarter and more sustainable lifestyle.
Q5 As China continues to pursue high-quality development along a Chinese path to modernization, what opportunities do you anticipate for your business as this process gains more traction? Will you increase investment in China in the coming years? How will you further expand your footprint in China?
XIA: China's unique modernization path, emphasizing innovation, sustainability and inclusive growth, is a field that the chemical industry can contribute to. Evonik wants to grow with the Chinese market and we are increasing our local footprint to better serve the market, with a focus on strategic industries such as e-mobility, renewable energy and healthcare. In 2025, we are expecting to see expansion in production capacity and investment in innovations for our local footprint in China, including a new specialty-grade hydrogen peroxide plant in Leshan, Sichuan province, which will complete and commence operations in November, serving sectors such as solar panels, semiconductors and food packaging. The expansion of specialty amine production at the Nanjing plant will also be completed in 2025.
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MACHADO: China's pursuit of high-quality development and modernization presents significant opportunities for Suzano. We are particularly excited about growing demand for sustainable and renewable products in sectors like packaging, textiles, hygiene, construction and paper. As part of our long-term commitment to China, we plan to increase our investments in China and in our Chinese customers and partners, aiming to further boost demand for our bio-based products and support acceleration to a greener and lower carbon economy. We are also investing efforts in developing Chinese suppliers and further integrating them into our supply chains. Finally, our measures aimed at further facilitating cross-border investments, financial flows and opening-up capital markets will support and accelerate Suzano's investments in China.
OTRANTO: We see an enormous opportunity to work with China on decarbonizing the steel industry through the development of green iron metal solutions. We're in discussions with Chinese steelmakers to explore green iron technologies as well as working with Chinese renewable manufacturers. These collaborations are focused on finding ways to reduce the carbon footprint of steel production — a significant goal given China's large role in global steelmaking.
DING: China's pursuit of high-quality development presents significant opportunities for multinational companies like 3M. We are consistently working to position 3M to capitalize on emerging trends and focus on end-markets where we can succeed. Investments in sectors such as automotives, energy and electronics all represent key growth areas for 3M. China is a strategically important long-term market for 3M, and we are confident in the opportunities it presents. We will continue to invest and expand our presence in the Chinese market, looking forward to further supporting the evolution of China's economy toward a healthier future, as we have done for over four decades.
