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"One of the great functions of the CIIE is its spillover effect. Every year we participate in the exhibition, we have a deeper understanding of the Chinese market, and then launch new products tailored for China, and then bring them to all parts of the world. This allows our innovation capabilities to blossom in China and bear fruit globally."

With 100 days left before the 7th CIIE (China International Import Expo), Ding Hongyu, 3M's global senior vice president and president of China, told Caixin that China remains one of 3M's most important markets in the world, "whether last year or this year. The performance of the Chinese market is very bright. We will increase the growth rate a little bit every month and are always optimistic about China's future development."

As a full-time participant of the CIIE, 3M is a witness and beneficiary of the spillover effect of the CIIE. It is also continuously increasing its investment in China and continuously exporting innovative solutions to the world. There are many such multinational companies.

Behind the continued increase in investment in China

Ding Hongyu said that at the fifth CIIE in 2022, 3M completed the project to expand the Shanghai Jinshan factory, and started the civil engineering of the project in less than a year. The investment in the entire production line is expected to be 400 million to 500 million yuan, and it is expected to be put into production at the end of this year or early next year. This is also the largest capital increase in the past 10 years.

At the same time, they set up a global R&D center in Shanghai nearly 20 years ago, and will also invest an additional US$1 billion in the field of global sustainable development. "These investments will eventually be allocated according to the situation of the production base, and China has one of the group's largest production bases in the world and has always played an important role." He pointed out that being based in China and serving China is inseparable from Chinese R&D. From Made in China to Created in China, R&D plays a key role.

Such speed, scale, and the trend of increasing reliance on R&D and innovation are the epitome of 3M's increased investment in China with the help of the CIIE.

Henkel Group, also a veteran of the CIIE, will expand its booth area for the second time this year. Anna, President of Henkel Greater China, said that Henkel will continue to deepen its presence in the Chinese market, continuously increase investment in R&D and high-end product production in China, and strengthen cooperation with local industries.

In the past five years, Henkel has successively built the Asia R&D Center for Consumer Products, the South China Electronic Adhesives Application Center, and opened the PuGuan Hairdressing College in China. At the same time, another R&D center and a new factory are under construction, and its footprint in China continues to expand.

At the beginning of this year, Henkel Consumer Products Asia R&D Center was completed and put into use in Shanghai. With an investment of about RMB 100 million, the center will serve as the largest R&D center for Henkel consumer brands in Asia, attracting top scientific talents and enhancing Henkel's local R&D capabilities in the two major business categories of hair care and detergents and household care. At the same time, Henkel invested about RMB 500 million in the Henkel Shanghai Innovation Experience Center in Zhangjiang, Shanghai, which is currently under expansion. After completion, it will become its second largest adhesive technology innovation center in the world, providing support for customers in China and the Asia-Pacific region.

From "first-time customers" to "returning customers" to "regular customers", Boston Scientific China Vice President Dabo said that since participating in the exhibition, Boston Scientific has successively realized "exhibits into commodities", and a total of 16 innovative products have been approved in China to meet the diversified diagnosis and treatment needs of Chinese patients. At present, Boston Scientific's first production and manufacturing base in China is under intensive construction in Lingang, Shanghai. The medical devices produced here will be supplied to the local market more promptly and stably. This year, they will focus on the trends of accelerated aging in China and the high incidence of major diseases, bringing more than 80 innovative products to the 600-square-meter booth, and will set up an independent exhibition area for neuromodulation for the first time at the booth, bringing implantable deep brain stimulation systems and a series of products for pain treatment.

Ossur, an Icelandic company, is an innovator in the prosthetics and orthotics industry, focusing on intelligent bionic products. Zhu Jinghao, president of Ossur Asia, told Caixin that since its debut at the CIIE in 2019, their revenue in China has increased by more than 30% in the past few years. This year, they will continue to launch new products that are first released globally. The Greater China regional headquarters currently established in Shanghai is preparing to be upgraded to the Asia headquarters.

As the largest exhibitor in the daily chemical consumer goods industry, L'Oréal has launched nearly 20 new international brands and hundreds of new products at the CIIE. Benefiting from the continuous release of the "spillover effect", L'Oréal is a witness to the "further" transformation into a "hot product" and a participant who "further" becomes an investor. Among them, the group's first intelligent operation center was officially put into operation in Suzhou in April this year; in May, an innovative technology company that was invited to settle in the innovation incubation area of ​​the CIIE last year has signed a strategic cooperation memorandum with the project partner Oriental Beauty Valley and officially started to deploy its business in China.

At the opening ceremony of the 6th CIIE, Premier Li Qiang shared three "CIIE stories" with Chinese and foreign guests. One of them was that in 2018, an American essential oil company came to the CIIE with a trial mentality, but unexpectedly received an order of 380 million yuan, and the purchase amount has since climbed to 1 billion yuan. As the protagonist of this story, doTERRA released the "Official Map of China's Strategic Procurement of Botanicals" for the first time at the 100-day countdown to the CIIE. The company's first overseas R&D center established since the 5th CIIE has also landed in Shanghai, greatly shortening the process of developing new products in China and meeting the needs of the Chinese market more efficiently.

McIlroy, president of doTERRA China, said that the performance in China is recovering rapidly. For example, in the second quarter of this year, the company's sales performance increased by 28% compared with the first quarter. This once again solidified the goal set by doTERRA to become the world's number one market in China by 2030. They increased their investment in the seventh CIIE, expanding the booth area from 200 square meters to 300 square meters, and the number of exhibits and the number of first-time new products will set new records.

Amid the complex and severe global economic trends, China faces many challenges in attracting foreign investment. Against this backdrop, Shanghai remains one of the most popular destinations for global investors. In the first half of this year, 3,007 foreign-invested enterprises were newly established in Shanghai, up 18.3% year-on-year. The city has newly recognized 29 regional headquarters of multinational corporations and 14 foreign-invested R&D centers, with a total of 985 and 575 respectively.

"Moving" at the CIIE to resonate with the same frequency

"Only by resonating with China's economy and society can enterprises achieve better development," said Ding Hongyu. "In the 1990s, our business focus was related to infrastructure. After 2000, we participated in the vigorous development of China's manufacturing industry. Now that China is vigorously developing sustainability, new energy, new materials, etc., we have also made timely adjustments."

As an important window for multinational companies to observe the Chinese market, 3M, which has increased its layout in China, especially its R&D investment, has also staged a vivid example of constantly "moving" at the CIIE. "The CIIE is a comprehensive display platform, and any company and business can find a suitable exhibition area." He said that this year, they will be stationed in the new materials exhibition area established for the first time at the CIIE, focusing on the theme of sustainability, and bringing a number of innovative products and solutions that are first launched in the world and China. In the past six years of the CIIE, they have appeared in the consumer electronics and home appliances exhibition area, the technology and life exhibition area, the medical equipment and pharmaceutical health exhibition area (public health and epidemic prevention area), the technology equipment exhibition area, the energy low-carbon and environmental protection technology area, etc., and with diversified products, they have demonstrated the company's annual focus adjustment in China.

Rooting in China, serving China, and even exporting Chinese innovative solutions to the world are 3M's long-term strategies in China. "Currently, about 75% of the production capacity of our seven factories in China is sold in the Chinese market, and some products are also exported." At the same time, they are also exporting more sustainable innovative solutions from China to Southeast Asia, Europe, and South America as Chinese companies "go global".

In addition to sustainability, health care under the trend of aging is also a hot topic in China and even the world. The "14th Five-Year Plan" for Shanghai Medical Security proposes to support the high-level, distinctive and diversified development of social medical institutions. In May this year, the Shanghai Municipal Health Commission issued two documents on social medical institutions in succession, further affirming that social medical institutions are an important measure to enhance the supply capacity of medical services and meet the diversified health needs of the people.

On July 26, Shanghai Xiehua Brain Hospital, funded by Asia Pacific Medical Group under Bain Capital, was officially opened. This project with a construction area of ​​55,000 square meters and a total investment of 1.2 billion yuan has 300 beds and 10 high-standard operating rooms, which can meet the needs of various complex operations in the field of neurosurgery and support the hospital to carry out clinical and scientific research in related fields. This is the first self-built hospital in China by Bain Capital as a social capital, and it is also the hospital with the largest investment amount so far.