Many international chemical companies believe that China is crucial for their future as a market, a manufacturing and supply base, a source of talent and innovation. Chinese chemical companies are clearly aware that the Chinese market has a great attraction to foreign chemical companies, so they know that this may give them an advantage in negotiations to achieve localization of demand, including research and development capabilities, advanced technologies, new generation technology licensing, innovative manufacturing processes, or a combination of the two. When considering China's strategy, executives need to assess whether they can find the right chemical reactions in the Chinese market, what they can bring to the Communist Party and use them as their business advantages.
At this webinar, we will review how international chemical companies can seize opportunities and innovations in the fast-growing Chinese market to gain competitive advantage. We will also discuss their intellectual property considerations and strategies. The webinar will focus on the following aspects of the chemical industry and provide some practical suggestions:
Overview of recent market trends and business transactions
Key intellectual property considerations and concerns for acquisition, protection and localization innovation
IP risk management is seeking business opportunities through investment, joint venture or merger and acquisition transactions
China is both a challenge and an opportunity for international enterprises. It is very important for international chemical companies to develop and implement effective Chinese intellectual property strategy.
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It is used interchangeably in the fiberglass pipe industry.
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The GRP pipe shown below was used in a variety of projects during the last five years.
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As our interviewees can see, the current situation of the chemical market can be summarized in three aspects: state-owned chemical companies are becoming more and more complex, multinational companies are generally operating in an unfair competitive environment, and the Chinese government is using its power to shape domestic industries.Executives say the sophistication of state-owned chemical companies lies first and foremost in sales and distribution: their skills are less technically complex, but they are catching up quickly.
Interestingly, only one executive believes that as SOEs become more capitalist and more interested in financial performance, competition will become fairer as they integrate into a more regulated global market.
In terms of competitive environment, state-owned enterprises have obvious advantages in obtaining government, capital, preferential license and supervision, and environmental control.Respondents said inflation - especially wages - was the biggest macroeconomic risk to profits.
The overall strategy of multinational chemical companies to deal with macroeconomic risks is to have in-depth understanding of customers, make costs more flexible, increase the number of localizations, and develop a broader portfolio to minimize the impact of changes in individual businesses or product lines.
The risk mitigation strategy of MNCs is a mixture of tactical measures, compliance and "corporate citizenship" actions, including the following methods:Show the government how the products support the five-year plan.Keep a low profile and don't confront the state-owned enterprises with political background, especially the smaller ones.Lobbying and managing relationships with government agencies.Affect industry standards and norms.Keep in touch with the local, not just at the provincial or national level.
