Editor's Note: China Daily is publishing interviews with CEOs of major foreign enterprises to gauge their outlook for the Chinese economy, their operations in China and their business plans for 2023.

Q1 Given the backdrop of a feared global economic recession, threats to global supply chains and the deep impact of the COVID-19 pandemic, what's your outlook for China's economy and your company's operations in China in 2023?

POIROT: Many economists have expressed optimism for China's economic outlook, predicting that there will be a rebound from the second quarter or second half of this year. Air Liquide has maintained solid growth in China amid multiple global challenges — such as an economic slowdown, supply chain disruptions, energy and climate crises — while guaranteeing stable supplies of essential products to customers in all sectors. In 2022, we put several new production facilities into operation in Tianjin, Shanghai, Chongqing and the provinces of Zhejiang, Sichuan, Jiangsu and Shandong to increase future supply. With the revival of the market, we remain confident in our operations in China for 2023.

XIA: With the updated COVID-19 policies, China is quickly rebounding from the pandemic. It is expected that China's economy will achieve an overall recovery and improvement in 2023. The boost from China's reopening will also inject impetus into the global economy and bring confidence to the business community worldwide. China is the world's largest producer and consumer of specialty chemicals. Evonik wants to grow with the Chinese market; therefore, we are increasing our local footprint to better serve the market by continuously expanding our local innovation and production capabilities.

XIE: The optimization of the COVID-19 measures could set the stage for an earlier-than-expected recovery of China's economy. It is almost a consensus that China's economy will embrace an overall recovery in 2023. Recent market consensus for China's GDP growth this year is between 5.0 percent and 5.7 percent. Our outlook for the country's economy remains positive, as China is the only country in the world that has all the industrial categories listed in the UN industrial classification and is the world's largest producer of over 220 types of industrial products. It enjoys complete and stable industrial and supply chains. Even in the very tough last year, China's economy showed remarkable resilience.

AGARWAL: In the first nine months of 2022, Henkel delivered a strong business performance globally. China is the third-largest market for Henkel and the Chinese economy continues to show resilience. Locally, we are proud of the contributions made to the overall growth of our business.

Over the years, China has been providing significant support for global industrial and supply chains, creating a stable and sound environment for growth for multinationals like Henkel.

Looking at 2023, we believe in the potential, resilience and long-term sustainability of the Chinese economy. Moving forward, we will continue to invest in China to accelerate impactful local innovations and strengthen end-to-end capabilities, combining our global experience in sustainability to support our customers and consumers in China.

MACCORMAC: We expect to see recovery in the aviation sector in China over the coming months, and we are confident that our industry will benefit significantly from the new policies in 2023.Aviation connects people and businesses around the world and is essential to support growth globally. We have already seen a recovery in international travel elsewhere in the world as countries have lifted travel restrictions. As we enter 2023, when China is poised to reconnect internationally, we are confident we will see a strong recovery in China as well.

Q2 Which business segment (s) of your company do you expect to see high growth in China this year? What are the new trends and interesting business opportunities in the Chinese market that your company might be keen to tap? How will you align your business strategies with such trends?

POIROT: Aligned with our long-term business strategy, we will look at opportunities and explore growth in the areas of hydrogen energy, electronics, high-tech manufacturing and medical care. We will further promote the development of the entire industrial chain of the local hydrogen energy industry, actively share Air Liquide's expertise in hydrogen production, transportation and storage technologies, and support local new forces in clean mobility. By deeply engaging in the local supply chain, especially in the Yangtze River Delta region and the Guangdong-Hong Kong-Macao Greater Bay Area, we support advanced semiconductor manufacturers with required advanced precursors to develop our business in the field of electronics.

XIA: China's dual-carbon goals have unleashed market demand for sustainable materials and low-carbon technologies, which brings huge opportunities to companies like Evonik. Evonik is committed to providing its latest sustainable solutions to the market and strengthening partnerships with local customers. We are enhancing local innovation capabilities with specific technologies to support strategic industries such as e-mobility, renewable energy and environmental protection, among others. We are also continuously optimizing our processes and technologies for production so as to minimize our impact on the environment.

XIE: We believe China's steel demand will stay resilient in the long term, supported by the country's sound economic fundamentals. Driven by the dual carbon goals, usage of steel structures in construction in China is expected to increase. As for raw materials, we see important business opportunities in an increasing demand for high-grade ores, blast furnace direct charge products and direct reduction feed that is driven by steelmaking decarbonization. We also see opportunities from the rapid growth of China's new energy vehicle sector. We are advancing the development of our robust pipeline of projects to enable growth in nickel to meet the needs of the growing NEV sector and to grasp the once-in-a-lifetime opportunity brought by energy transition.

AGARWAL: China is focusing on achieving higher-quality growth in a more efficient and sustainable manner, which will further foster innovation and sustainability, thus providing more opportunities for companies like Henkel. Our commitment to sustainability aligns with China's national agenda of a green economy. In China, one-third of our production sites use 100 percent green electricity.

In the coming years, Henkel will continue investing in China to further support our consumers with impactful and sustainable innovations in sectors where we see strong future demand. These include industrial sectors such as new energy vehicles, new materials, consumer electronics, telecommunications, new infrastructure, additive manufacturing and consumer segments such as hair dyes and home cleaning products.

MACCORMAC: The civil aviation market will no doubt see a strong recovery. Apart from that, we see huge potential in the growth of more sustainable power solutions — which is a focus for Rolls-Royce. We are constantly improving fuel efficiency in our products as well as compatibility with sustainable fuels, while exploring alternative energies. For example, in recent months, we tested our civil aero engine and power generation engine using hydrogen fuel. As China sets its dual carbon goals, the sustainable power solutions provided by Rolls-Royce will see growing market demand.

Q3 China's top policymakers have pledged greater efforts to attract foreign capital, widen market access, promote further opening-up of modern service industries and ensure a level playing field for both domestic and foreign companies. In this context, what measures do you expect this year? Will you draw up new plans for investment, hiring and business expansion in China?

POIROT: China's government officials have reiterated the country's commitment to prioritizing development and market-oriented reform. I expect that the measures taken would cover fronts like formulating preferential industrial and technological policies, expanding domestic demand, leveraging international innovation capabilities, encouraging low-carbon and sustainable industries, and driving the integrated development of key regions such as the Beijing-Tianjin-Hebei region.

In 2022, despite many challenges, Air Liquide delivered solid growth in China and made another record number of investment decisions. We will take advantage of the business opportunities arising from these measures and continue to expand our partnerships with local stakeholders in the sectors of new energy, medical care, electronics, high-tech and innovation.

XIA: We welcome China's further opening-up of its market and look forward to initiatives that widen market access and promote closer international cooperation. We believe cooperation will lead to more innovation, bringing growth and shared prosperity. Evonik has been advocating close collaboration along the value chain so as to develop solutions at a faster pace. For example, at our first global lithium-ion battery center, which opened last year in Shanghai, we are able to run joint development programs with local customers to support the fast-growing battery and electric vehicle industry. Expansion of the center is already on the plan.

XIE: As an exhibitor at the China International Import Expo for five consecutive years, Vale is firmly convinced of China's determination to consistently promote high-standard opening-up. We think it's very admirable for China to share market opportunities with the rest of the world, which fully demonstrates China's role and responsibility as the world's second-largest economy. Holding a long-term commitment to the China market, we will continue to put China at the center of our business strategy.

AGARWAL: These measures will deliver broad and ongoing opportunities for Henkel, which has long been committed to the Chinese market, allowing us to attract and develop talent both locally and globally. Our new inspiration center in Shanghai, which will be the second-largest Henkel facility of its kind in the world, and the new R&D center in Shanghai focusing on consumer brands, which is scheduled to open this year, are two recent examples of our commitment to the market where Henkel's strong local innovation team will bring leading technologies and solutions that support rapidly evolving industries for China and the world.

MACCORMAC: In 2022, we established Beijing Aero Engine Services Co Ltd, a new 50/50 joint venture with Air China, which will provide maintenance, repair and overhaul for Rolls-Royce Trent 700, Trent XWB-84 and Trent 1000 aero engines. This joint venture is an important part of Rolls-Royce's strategy for China in terms of giving customers the best level of service, improving the cost-competitiveness of our business and generating incremental MRO capacity as shop visits grow. When the company reaches its full capacity, which is expected to be in the mid-2030s, up to 800 new jobs will be created locally.

Q4 This year marks the 45th anniversary of China's famed reform and opening-up policy. In this context, in which areas do you expect more progress? How is your business likely to benefit?

POIROT: China has achieved rapid economic and social developments and has reiterated its commitment to a higher-quality and mutually beneficial opening-up strategy to the outside world. With China's determination to share opportunities in its vast market, I expect to see broader and deeper international cooperation. With the new catalog of encouraged industries for foreign investment coming into full effect, the industry landscape will see new changes with more investment in advanced manufacturing sectors, including electronics, automaking, shipbuilding and pharmaceuticals, to which we supply essential molecules and systems. We'll also take part in optimizing the regional distribution of resources and upgrading industrial transformation by expanding cooperation in the central and western regions to contribute to a more balanced development.

XIA: Opening-up brings win-win results for both domestic industries and foreign players. Bringing our global expertise and experience to the Chinese market, Evonik gets closer to local customers and becomes more competitive in the global market. As China embarks on a journey of green and high-quality transformation, opening-up at a higher level is essential. We look forward to policies that help deepen cooperation in technological innovation, industrial consolidation, and in key industries like advanced manufacturing, high-tech and environmental protection. This will not only propel growth, but also create new value over the long term.

XIE: As a long-term partner of China for 50 years, Vale is very proud to have witnessed the entire process of China's reform and opening-up that started in 1978 as both a beneficiary and a contributor. On the one hand, we have supplied China with more than 2.8 billion tons of high-quality iron ore products, which have contributed to the economic development of the country. On the other hand, China has been our largest market since 2006 and the destination of more than 50 percent of our iron ore products since 2014. The growth of Vale has been closely connected with the development of China, especially after the country started its famed reform and opening-up.

AGARWAL: Henkel's business footprint is deep in China and the large domestic market plays an important role in our global operations. Starting with importing products to the Chinese market more than 50 years ago, today, Henkel is innovating in China, for China, while providing international markets with sustainable innovations created in China. We have witnessed the nation's reform and opening-up, growing alongside the country and making continuous investments that have supported the development of the local industry and workforce. Moving forward, we look forward to initiatives that build an even stronger business environment across different categories and further promote international cooperation.

MACCORMAC: China is a vitally important market for us and it will only be more important in the future. Our relationship with China has gone far beyond selling products and equipment, and has extended into supply chain and people development. We are fully committed to the Chinese market with a growing footprint and increased investment over the years.

Q5 As China continues to pursue high-quality development along a Chinese path to modernization, what is your vision for your company's business in the country? What business opportunities do you foresee emerging as part of this process?

POIROT: Being present in China for over three decades, Air Liquide has been part of the country's modernization journey. In the context of China's pursuit of further modernization, we'll continue to see the Chinese market expanding and the Chinese people's demand increasing for high-quality goods and services, which is a great attraction for global enterprises. In line with this path, Air Liquide China is committed to strengthening partnerships in high-end sectors, such as electronics, quantum computing, IoT, artificial intelligence and space. Moreover, we will continue to scale up our low-carbon and renewable electricity sourcing, optimize our supply chain, improve the efficiency of production units and implement innovative carbon capture technology.

XIA: Green transformation has become one of the key elements in China's high-quality development. Sustainability is also at the core of Evonik's strategy globally and in China. Therefore, we are committed to taking an active part in this transformation and seeking deeper cooperation with local partners. We will continue to provide the latest innovative and sustainable solutions to the market. We look forward to venturing further to promote the green and low-carbon economy and contributing our share to China's high-quality development.

XIE: China is in pursuit of high-quality development with the decarbonization of its steel industry. Vale is fostering pioneering iron solutions to support our Chinese clients on this journey. Apart from offering high-grade iron ores, we are promoting the development of new products and low-carbon technologies, such as Green Briquettes for both blast furnaces and direct reduction furnaces, which allows for an over-10-percent emissions reduction. We have been in discussions with some potential Chinese partners for participation in mega-hubs. We seek to continue being the most reliable raw material supplier to China and embrace a carbon-neutral green future together with China.

AGARWAL: China's focus on achieving higher-quality growth in a more efficient and sustainable manner will further foster innovation and sustainability, providing more opportunities for Henkel. In recent years, the growing purchasing power of Chinese consumers and rising aspirations for a better life have required companies like Henkel to continuously introduce innovative products that offer superior experiences. Our strong local innovation and production capabilities established in the past decades enable us to empower our customers in broad industries to capture new opportunities and deliver high-quality products.

MACCORMAC: Rolls-Royce has been part of China's growth story for 60 years, since we delivered our first engine to power China's civil aviation in 1963. Our business in China is built on this strong foundation, and our relationship has evolved into multifaceted and mutually beneficial partnerships.

As we look into future development, China has set "dual carbon goals" for the industries we operate in. Rolls-Royce is well positioned to support this pledge. We are determined to use our position as a global power group to play a role in creating a resilient, inclusive, net-zero carbon future. We look forward to working with Chinese partners on this path.