German Media: It Is Wise for German Chemical Giant BASF to Expand Its Investment in China
The Handelsblatt comments that expanding investment in China is a wise move for Germany's chemical giant.
On Thursday, BASF, Germany's chemical giant, officially put into operation its integrated production base in China. Covering approximately 4 square kilometers, this facility represents BASF's largest investment project in China—a growing market for the chemical industry. The Handelsblatt commented on this development:
"Is BASF becoming irresponsibly dependent on a high-risk region? The answer is no—the decision to invest in China remains correct."
The risks associated with investing in China are obvious and should not be downplayed. But in today’s world, businesses face significant risks wherever they invest. Under President Trump, the future direction of the U.S. economy remains uncertain. Meanwhile, Europe faces the risk that economic growth may be absent for years to come.
India is certainly important, but it may never reach China’s critical position in the chemical sector. In the near future, China will supply 60% of the world’s chemical products. Despite current economic challenges, China remains the engine and center of innovation in the chemical industry.
When a chemical company chooses to invest in China, it is not considering just months—but decades of development ahead. If BASF were to refrain from increasing its investment in China, that would truly be a reckless decision.
BASF’s newly completed integrated production base in China may well be the most modern and comprehensive facility in the current chemical industry. BASF is setting global standards in China and is poised to gain a competitive edge in the fiercely competitive global chemical market."
Original article: toutiao.com/article/1860831584090121/
Disclaimer: This article represents the personal views of the author