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BASF pushes EU to reach investment agreement with China
Time: 2019-11-27 Source: Internet Read: 1188 times
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Wenzhou Junchuan Machinery Equipment Co., Ltd.

Obviously, the highly attractive and minimal political risk of the Chinese market prompted BASF to make a decision to put its production base in China. Vladislav Belov, deputy director of the European Institute of Russian Academy of Sciences, accepted Russia The satellite news agency made this remark in an interview. On November 23, the German company officially launched its largest overseas investment project of US $ 10 billion in Zhanjiang City, Guangdong Province.

This will be China's * one integrated chemical production base wholly-owned by a foreign company. It will mainly produce engineering plastics, thermoplastic polyurethanes, and some petrochemical products that are widely used in new energy fields such as automobiles and electronics.

After the completion of the integrated production base * in 2022, BASF will produce about one-fifth of these products in China. By 2030, when the entire project is completed, this production base in China will become BASF's third largest integrated production base in the world after Ludwigshafen in Germany and Antwerp in Belgium. Martin Brudermuller, chairman of BASF's executive board, said China's share of global chemical production will increase to nearly 50% by 2030.

Vladislav Belov, deputy director of the European Institute of the Russian Academy of Sciences, pointed out in an interview with Russian Satellite News Agency that China is one of the largest markets for chemical product consumption after North America.

He said: "I'm hard to determine which other markets or other production locations BASF has considered, but it is clear that the Chinese market is competitive in this regard. This is the largest German project in China in recent years. BASF has Everything was considered for the next few years, including political risk. Obviously for BASF, political risk is not important compared to economic and technical indicators. It took several years to make the decision to land the production base in China. I am sure , At least 3-5 years have been prepared to make this decision. "

During Li * ’s visit to Germany last July, the agreement reached between the two parties on the construction of the factory gave the project a green light. A framework agreement on the project was signed in January this year.

Hu Chunchun, deputy director of the German Research Center of Tongji University, pointed out in a written interview with Russian Satellite News Agency that such professional decisions include both confidence in the capabilities of his own company and positive judgments on the Chinese market and China's development.

Hu Chunchun said, "With regard to BASF's investment in China, we aside from the micro level of the company's own operations. From a macro perspective, this is undoubtedly a further opening of the Chinese market and the Chinese market to the world. The Chinese market can provide growth for foreign companies A confidence vote of opportunity. As we all know, for some time, the world economy has been headwinds. The so-called counter-globalization, decoupling theory, unilaterally launched a trade war, a certain country * and other slogans have caused the world economy to enter a slow growth, or even exclude the downward As staunch proponents of globalization, multilateralism, and free trade, China and Germany have similar positions on these issues. Moreover, in this adversity, China insists on further opening up and provides opportunities for world enterprises. Benefit from development to achieve win-win and multi-win. As a world-class chemical company from Germany, BASF will not make judgments against itself when facing the huge market of China. Therefore, this professional decision is not only It includes confidence in the capabilities of your company, as well as the Chinese market, Positive judgement of China's development. I think that as long as China and Germany and more countries adhere to multilateralism and free trade, and resolve their dispute positions through the existing multilateral framework, the world economy and even world politics may face fewer conflicts. We praise BASF and the cooperation between China and Germany. "

China hopes to sign a new investment agreement with the EU next year. China believes that the entire negotiation is constructive and fruitful. BASF's investment in China is undoubtedly an important step in the development of China-EU business cooperation. Formally, it will not touch sensitive areas where Brussels has called for further opening of the Chinese market and European investors have called for relaxation as a prerequisite for signing investment agreements. Brussels' requirements are mainly related to the car manufacturing, banking and insurance industries.

Obviously, BASF's new project is a strong signal for China's continuous improvement of the business environment, and also the best proof of increasing foreign investors' confidence in the Chinese market. In early November, the State Council of China issued the Opinions on Further Improving the Use of Foreign Capital. This new document highlights the need to guarantee the national treatment of foreign-invested enterprises.


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