European firms look to deepen ties with China

Major European pharmaceutical and cosmetics companies are looking to deepen their partnerships in China ahead of a major trade fair, as recent China-European Union trade consultations underscore both sides' commitment to addressing market access issues through dialogue.

In the joint statement following ministerial-level trade talks in Beijing last month, the two sides agreed to continue dialogue on medical devices, cosmetics and pharmaceutical regulatory frameworks, to address the existing and future market access barriers.

It said the EU welcomes China's efforts to increase imports of medical devices, including through an event dedicated to European healthcare companies at the 9th China International Import Expo, or CIIE, in Shanghai from Thursday to Tuesday.

Launched in 2018, the CIIE was designed to expand China's imports and share its vast market opportunities with businesses around the world, and through the years it has evolved into a platform for companies to engage with policymakers, local partners, and global industry leaders.

At a recent news conference regarding the CIIE, Vice-Minister of Commerce Yan Dong said the exhibition area will exceed 440,000 square meters for the first time, and companies from the United States, Germany, the United Kingdom, and France will lead the pack in terms of exhibition space.

Executives from Bayer, L'Oreal, and Merck Healthcare were upbeat about the expo and said their long-term strategies in China are increasingly shaped not only by the scale of the market, but also by its growing innovation capabilities and the potential for partnerships to generate benefits beyond national borders.

Andre Musto, managing director and general manager of Merck Healthcare China, said the CIIE was more than a showcase for new products.

"We look forward to leveraging the CIIE to deepen our engagement with government authorities and partners, and to work together to improve patient outcomes," he said.

The company plans to highlight collaborations with Chinese healthcare organizations and digital platforms, including Alibaba Health and JD Health, as well as work with medical professionals and the China Alliance for Rare Diseases.

These initiatives aim to improve public health education, strengthen rare disease diagnosis and treatment, expand access to healthcare services and advance precision medicine, Musto said.

It also plans to showcase 16 marketed products covering cardiovascular and metabolic diseases, oncology, rare diseases, and fertility, alongside updates on innovation in fertility and desmoid tumors, or noncancerous growths.

"Bringing innovative medicines from research to patients requires the collective efforts of all stakeholders across the healthcare value chain," he said.

For Bayer, the German life sciences company with more than 140 years of operations in China, the country has evolved from a major market into an increasingly important contributor to global innovation.

"For many years, companies looked to China primarily as a large and fast-growing market. Today, it is increasingly contributing to global innovation," said Stefan Oelrich, member of the management board of Bayer AG.

Also the head of Bayer's pharmaceuticals division, Oelrich said the pace of scientific progress in China, its strong scientific capabilities and the development of its biotechnology sector are creating new opportunities for the company, and Bayer remains committed to supporting healthcare innovation in China.

Important opportunity

"Our participation in the China International Import Expo for the ninth consecutive year reflects that commitment and provides an important opportunity to strengthen healthcare partnerships," said Oelrich, adding that there is considerable scope for China-EU cooperation in pharmaceuticals and healthcare.

"Healthcare challenges are global, and increasingly so is innovation," he said. "In healthcare, collaboration is not a zero-sum game. Patients everywhere benefit when innovation succeeds, wherever it originates."

He said that Bayer sees growing potential for innovations originating in China to contribute to its global research and development pipeline, particularly in areas such as cardiovascular disease, oncology, neurology and cell therapies.

Cosmetics giant L'Oreal sees China as a market where sustained local engagement and collaboration can support future growth.

"The CIIE is much more than just an exhibition. It's one of the initiatives where the group has invested and engaged the most. Every year, we bring the best of beauty to China and to Chinese consumers, and we are creating the future of beauty," said Vincent Boinay, president of L'Oreal North Asia and CEO of L'Oreal China. The company has made active preparations for its ninth consecutive participation in the expo alongside the Hongqiao International Economic Forum.

"It offers a valuable opportunity to exchange ideas with global leaders on topics such as consumption, innovation, sustainability and international cooperation," said Boinay.

He Qi in Shanghai contributed to this story.