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World CEOs optimistic about China's economic outlook

chinadaily.com.cn | Updated: 2020-03-04 06:40
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Holly Lei, President of Covestro China [Photo provided to chinadaily.com.cn]

Holly Lei, President of Covestro China

Governments of different levels have been providing prompt support to multinational companies such as Covestro, allowing us to continue production as normal, since our operations requires continuous production. For example, the 28 measures introduced by the Shanghai government to aid the battle against COVID-19 have helped to ease the pressure of packaging materials and logistics, both of which are essential to us in order to fulfill our customers' needs. Covestro has also been designated by Shanghai authorities as a producer of epidemic prevention materials, and this has allowed us to continue producing key materials such as polycarbonate, which can be used to make protective goggles.

The epidemic is an added challenge to an already difficult market, marked by geopolitical and macroeconomic uncertainties. However, we still foresee long-term demand for high-tech plastics, which are critical to sustainable development for China and the world. For example, the current trend in China of upgrading industries and consumption and the shift to a circular economy will require more sustainable and innovative materials and solutions. Continued urbanization and the aging population in China promise substantial business opportunities, especially those related to domestic consumption. The country's pursuit of green development, innovation and further opening-up are also aligned with our business strategy. This pursuit also underscores its economic resilience and ensures its continued contribution to global economic growth.

China is our home market. We continue to demonstrate our commitment to China by investing in areas that can contribute to sustainability and innovation. Our confidence and commitment to the China market, which accounts for a fifth of Covestro's sales, remains unchanged. The impact of the viral outbreak will hopefully only be short-term given the strong measures the Chinese government has taken to combat the virus. We would expect the economy to bounce back quickly, seeing how the government has unveiled a suite of policies to bolster business vitality.

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