Corning poised to invest US$500mil to expand presence in China
Beijing: US-based materials science company Corning Inc plans to invest another US$500mil in China this year, reinforcing its long-standing commitment to what it calls its most important overseas market, despite ongoing geopolitical and economic headwinds.
'This year marks the milestone of Corning being in China for 45 years, so we are going to expand our capability and also upgrade our technology,' Lin Chunmei, vice-president of Corning Inc, said during a recent exclusive interview with China Daily. 'Our strategy is very simple – just keep investing in our leading technology capabilities in China.'
Since entering the Chinese market in the 1980s, Corning has invested more than US$9bil in the country.
Today, it operates 21 manufacturing plants, a research and development centre and three technology centres, employing nearly 6,000 people across the country.
Despite headwinds such as weaker global demand and trade disputes, Lin, who is also president and general manager of Corning Greater China, said she expects the company to achieve steady growth in China this year, voicing strong confidence and optimism about China's long-term prospects.
'China is no longer a country of just cheap labour. It has very sophisticated talent and a complete infrastructure,' Lin said. 'I think China now has much more power and strength to go through challenges than before.'
While acknowledging the short-term challenges posed by trade frictions between the United States and China, Lin argued that economic logic would ultimately prevail. 'This kind of trade war is a lose-lose. China will get hurt, but the others will hurt too,' she said.
'At the end of the day, business is business. We need to be rational to make the most logical decisions that benefit both. Eventually, I think that will be the solution.'
This year, China is putting a priority on fostering new high-quality productive forces and boosting technological innovation in its economic agenda.
According to the Government Work Report, China will strive to develop new productive forces in light of local conditions and accelerate the development of a modernised industrial system.
This will require the fostering of emerging industries and industries of the future, such as bio-manufacturing, quantum technology and embodied artificial intelligence (AI).
'Developing new productive forces will be key to boosting China's long-term economic growth potential, with AI – in which the United States and China are seeking to gain a competitive edge – set for intensified development,' said Li Chao, chief economist at Zheshang Securities.
'Future industries could be a particular focus and we anticipate new industrial plans to outline their growth trajectories.'
Now, Corning is capitalising on key trends, including China's AI boom, data centre expansion and environmental policy upgrades – areas where the company's speciality glass, ceramics and expertise in optical physics are in high demand.
'AI is very important to us because customers need better connection,' Lin said.
'It has enhanced our optical communications business globally – in the US and also in China. We are actually upgrading our fibre capabilities, making more premium fibre in China, and we also have a plan to increase our capability to support the demand for data centres.'
The company is also targeting growth in China's auto sector, the world's largest in terms of both sales and manufacturing capability.
Corning provides advanced glass and emission control products for the country's increasingly tech-forward and environmentally-conscious vehicles.
'China-made cars are very cool, not only their engines but also user-friendly designs.
'Our auto glass really makes it very user-friendly and visually appealing. That's an investment area we continue to expand in,' Lin said.
'To us, 'grow with China' is not a slogan – it's what we have seen in the past,' Lin said.
'The next China is still China. I believe in it. China still has a lot of strong momentum and strengths to keep growing.' — China Daily/ANN
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