China's government is making it clear that the future lies in high quality, high-tech innovation. Shanghai's Municipal Government recently announced a series of measures designed to boost and enhance research and development in the city's science and tech hub. CGTN's Sean Callebs had a chance to visit a German high-tech electronics manufacturing operation in Shanghai – and explains what's at stake.
Unless you are a scientist, you'll probably have little idea of what's going on in this lab – owned and operated by the German company Merck in the manufacturing hub of Shanghai. So, here it is, the liquid crystals made in this lab have every day use for us. In the screens of our phones, Laptops, Flat screen monitors and TVs Even the giant screens that light up the skyline – like the ones in Shanghai.
BELLA ZHI, Merck Global Head of Liquid Crystals & Patterning Material "China's liquid crystal industry has achieved an absolute lead globally in terms of production capacity. It already fills 70-percent of the global capacity."
Merck is a behemoth. It's a German company with businesses focused on pharmaceuticals, health sciences and electronic technology. Shanghai concentrates on electronics. Beijing has made it clear – the country's future rests on innovation and high quality manufacturing.
BELLA ZHI, Merck Global Head of Liquid Crystals & Patterning Material "We often hear about this emphasis on high quality development. For companies like us, which are oriented toward technological innovation – this is particularly important. It presents us with great opportunities for future development."
Merck says it has had success with its clients, as well as the government here. Over the past 10 years, Merck has invested more than 830-million dollars in research and development, and the multi-national giant has five thousand employees in China.
SEAN CALLEBS, Shanghai "You have no doubt heard of LEDs. It's what brings to life the flat screen TV in your home. Well, this is the NEXT generation – it is called O-LED, and it is extremely thin. I am not going to act like I know all the science behind it, but what I can tell you is that it is the future and it is made at this German factory in Shanghai."
The future will be brighter colors – the kind that jump off the screen.
TOBIAS GROSSMANN, Head of R&D OLED China, Merck "The secret behind these pixels is it's kind of about ten layers of different tiers in that little thing. So, it is thinner than even human hair."
Tobias Grossmann moved from Germany six years ago. China wants more foreign investment, and Grossmann says right now he has no plans to return to Germany. He likes his work and his life in Shanghai.
TOBIAS GROSSMANN, Head of R&D OLED China, Merck "I was amazed by China's progress in science and technology. Shanghai is the ideal place."
It's been a much harder sell for the head of the American Chamber of Commerce in Shanghai. But Eric Zheng says US companies need to figure out a way to compete in China, and tap into its hundreds of millions of middle class citizens who have money to spend.
ERIC ZHENG, President, American Chamber of Commerce in Shanghai "The big concern obviously is geopolitics – the relationship between US and China. We are hopeful the two governments continue to work together to stabilize this relationship."
China's science and tech investment surged more than 8% in 2023, to 458-billion dollars. For Merck, a company that has been in China since 1933, that's good news, and a good chance for the future to be, well, even brighter. Sean Callebs, CGTN, Shanghai.
