Core Viewpoint - The establishment of Henkel's second largest global innovation center in Shanghai highlights the city's growing importance as a hub for technological innovation and high-end manufacturing, driven by government support and a favorable business environment [3][5]. Group 1: Innovation and Investment - Henkel's new innovation center in Shanghai represents an investment of approximately 500 million RMB and spans 33,000 square meters, focusing on adhesive, sealant, and functional coating technologies [5]. - The center aims to cater to the Asia-Pacific region, with China identified as a key market due to its rapid advancements in high-end manufacturing and sustainability trends [5][6]. - Data from the Ministry of Commerce indicates a year-on-year increase of 11.4% in newly established foreign-invested enterprises in China from January to July 2025, with over half of German companies planning to increase investments in China within two years [5]. Group 2: Speed and Scope of Innovation - The rapid pace of innovation in China has impressed Henkel's leadership, with examples such as the reduced time frame for new energy vehicle development, now taking only 12 to 15 months from R&D to production [6]. - Chinese companies are increasingly engaging in cross-industry innovation, necessitating a more integrated approach to innovation that spans multiple sectors [6]. - Henkel's diverse business areas cover over 800 application scenarios, allowing for extensive opportunities for innovation through collaborative efforts across different fields [6]. Group 3: International Collaboration - The unique demands and rapid iteration in the Chinese market are driving global technology innovation, fostering collaboration between foreign enterprises and local partners [8]. - German companies are eager to participate in China's innovation landscape, leveraging their technology and expertise to contribute to local development [8][9]. - Henkel aims to leverage its local experience to support Chinese companies in their international expansion, promoting "Chinese innovation" on the global stage [9].

Core Insights - Over half of German companies plan to increase investments in China within the next two years, indicating a strong confidence in the Chinese market [2][4] - Henkel has established its second-largest global innovation center in Shanghai, focusing on adhesive technology, which highlights the importance of technological innovation in enhancing productivity [1][2] - The rapid pace of innovation in China, particularly in sectors like electric vehicles, is reshaping industries and driving cross-industry collaboration [3][4] Investment Trends - The establishment of Henkel's innovation center in Shanghai represents a significant investment of approximately 500 million RMB, covering an area of 33,000 square meters and employing over 500 scientists and technical experts [2] - Data from the Ministry of Commerce indicates a year-on-year increase of 11.4% in newly established foreign-invested enterprises in China from January to July 2025, reflecting a robust foreign investment climate [2] Innovation Landscape - The innovation experience center in Shanghai aims to cater to the Asia-Pacific region, which is recognized as one of the most dynamic and diverse markets globally, with China being a key player [2][3] - The trend of platform-based and cross-industry innovation is emerging, as leading Chinese companies are increasingly integrating various sectors to enhance their innovation capabilities [3] Collaboration and Global Impact - The unique demands and rapid iteration of the Chinese market are driving global technology innovation, fostering collaboration between foreign enterprises and local partners [4][5] - Henkel aims to leverage its local experience to support Chinese companies in their international expansion, promoting "Chinese innovation" on the global stage [5]

Group 1: Investment and Expansion - Henkel's President for Greater China emphasized the company's commitment to increasing investment in China, leveraging the China International Import Expo to connect resources along the supply chain and accelerate local innovation [1] - The acquisition of Suzhou Bock factory and the initiation of the Henkel Kunpeng factory in Yantai, with a total investment of approximately 900 million RMB, highlight Henkel's strategic expansion in the industrial sector [1] - The German company Voith announced an additional investment of 500 million RMB to expand its production base for chassis suspension components in Suzhou, marking its fourth investment in China [1] Group 2: Green Economy and Sustainability - Schneider Electric's executive highlighted the global trend towards digitalization and green low-carbon initiatives, with the company operating 21 "zero-carbon factories" out of 30 in China, showcasing its commitment to sustainability [2] - The Wuxi factory of Schneider Electric has achieved a 90% reduction in Scope 1 and 2 carbon emissions and a 65% reduction in Scope 3 emissions, earning the title of "Sustainable Lighthouse Factory" from the World Economic Forum [2] - ExxonMobil's Huizhou ethylene project, with a total investment of 10 billion USD, officially commenced production, utilizing green technology to reduce nitrogen oxide emissions by 50% and greenhouse gas emissions by 35% [2] Group 3: Industry Innovation and Standards - Lubrizol's Asia Pacific Vice President noted that China is not only a source of technological innovation but also a key player in global standard-setting, particularly with the advancement of the "National 7" emission standards [3] - Danfoss's China President stated that the ongoing industrial transformation in China is creating new development opportunities for various industries focused on green solutions, with strong growth expected in data centers, semiconductors, shipping, and energy storage in 2024 [3]