'Dual circulation' to boost growth (II)

A1: In the chemical industry, the storm triggered by the pandemic in 2020 was further worsened by other threats, including the decline in oil demand and production. However, in China, shortly after the COVID-19 outbreak, Clariant initiated our China emergency management system.

In order to ensure the supply of raw materials for downstream customers, especially for epidemic prevention and control, public utility operation and people's livelihoods, many Clariant plants resumed production for emergency supplies as early as during the Spring Festival. With support from authorities at all levels, these plants have then fully resumed production ever since mid-to-late February last year.

Our successful emergency recovery was reflected in our financial performance. Clariant's sales in China increased 27 percent in the third quarter and 10 percent over the first nine months in 2020 compared with the same time in 2019. This made China the highest growth region in the group.

A2: With the implementation of the recent "dual circulation" economic model, more growth opportunities will be presented in the domestic market. Clariant will develop in accordance with the plan and go ahead with our strategic projects that are already in the pipelines, with a clear focus to produce "in China for China" for all our core specialty chemical businesses like catalysts as well as chemicals for personal care and natural resources.

In addition, China's recent five-year plans also shares the idea of resource conservation and environmental protection with the chemical industry. Clariant fully understands the goals and needs of China's high-quality growth outlook. We also have strong innovative resources that are continuously strengthening our local capability for tapping into this demand.

Clariant believes that our future will be decided in Asia, especially in China.

A4: COVID-19 had a huge impact on the global economy and the stability of supply chains was especially thrown into chaos. Compared with other countries, China has been the role model in the war against COVID-19 by getting ahead in bringing back normal economic activities. Clariant appreciates the effort from the Chinese government and the people here, who are the foundation for business stabilization and continuity. We are glad to see China becoming a stable supply base globally.

In addition to safeguarding the lives of its people during the pandemic, people's livelihoods are also of utmost importance for China's development and also the most relevant topic for every one of us. Clariant has been putting great effort on sustainability and green chemistry for many years, and this is one of the key strategies for our company's development.

A5: Among the five elements of the new development philosophy, innovative development, green development and open development are already embedded in Clariant's corporate strategy. Clariant is investing more than 3 percent of its revenue every year on innovation, and the figure for R&D for some of the business units like catalysts, for example, is even double that number. Clariant's dedicated China vision to actively support the high-quality development of China with our sustainable and innovative solutions is already fully in line with the new development needs of the country.

A7: During the 14th Five-Year Plan, the petrochemical and chemical industry will continue to carry out its role in further capitalizing on innovation and coordination on green development by further opening-up, sharing and adhering to the basic state policy of resource conservation and environmental protection.

China's 2035 long-term development goal will also emphasize the importance of sci-tech development. Undoubtedly, innovation is an important carrier for China on its path to a powerful economic body. For multinational corporations like Clariant, we will continuously strengthen our local innovation capability to support China's development. We will continue to partner with local institutes, as we have recently with Tianjin University, for developing specific cutting-edge technologies. We will also invest in local innovation capabilities to better fit into China's market development trend.