Our investments in China are in line with our strategic principles: producing where our customers are and investing where we see opportunities for growth. We are producing in China for the Chinese market (local-to-local approach). Today, locally manufactured products account for about 75 percent of our sales in Greater China, that is, both to domestic companies and multinationals keen to take advantage of the growing Chinese market. Based on the development of the last 10 years and current projects, we expect the share of products made and sold locally in China to further increase in the future. 

With our investments in China, we aim to gain additional market share in a dynamic market environment. This contributes to a better regional diversification of our global sales distribution. A strong foothold in Asia Pacific, particularly in China, strengthens our resilience and accelerates our transformation to net zero, for example, through state-of-the-art manufacturing assets and the extensive use of renewable energy. Furthermore, earnings contributions from China enable the green transformation in other regions.

We want and need to be strong and to be present in all the key markets: Europe, North and South America, and Asia Pacific. Therefore, through our commitment to China we are neither relocating parts of our production from Europe to China nor are we creating dependency on one single market.

At BASF, our investment decisions are always based on comprehensive analyses. Besides economic criteria, we also consider environmental, social and geopolitical aspects. We have thoroughly assessed the opportunities and risks of our engagement in China, involving external experts in the process. Our conclusion is that the opportunities for BASF outweigh the risks. 

As part of our ongoing risk management, we continuously monitor (geo-)political developments, assess different scenarios, and take appropriate measures to mitigate risks and hedge our investments. This also means that we do not make individual investments or take individual risks that could jeopardize the long-term success of the BASF Group. This is also true for our largest investment project, the new Verbund site in Zhanjiang.

We are committed to doing business in a responsible, safe, resource-efficient and respectful manner. Our corporate values and our global Code of Conduct serve as our compass. They apply equally to all employees and sites wherever BASF operates. In everything we do, we are committed to upholding internationally recognized principles and standards, such as the Universal Declaration of Human Rights. Within our immediate sphere of influence, we do not accept or tolerate any violation of these internationally recognized principles or our standards.

We review our own operations and those of our suppliers for compliance with our standards on a regular, risk-based and systematic basis. Should investigations reveal deviations from our standards, corrective actions are taken within a reasonable timeframe as part of a clearly defined follow-up process. 

Latest information about BASF in Xinjiang, China

The great challenges we face today, such as climate change, can only be solved through global coordination and cooperation – between governments as well as companies, science and society. That is why it is important to maintain dialogue, relationships and collaboration with China – despite differing political systems. Navigating this complex and changing geopolitical environment is not always easy. Finding the right balance is a necessary task requiring our constant attention.

As a global company, we must be present in the fast-growing Chinese market. We clearly stand by our values and our commitment to human rights, and we work with partners on climate protection. One example of this is the first Sino-German offshore wind farm project, to be built in South China in cooperation with Mingyang. With a total installed capacity of 500 megawatts, the planned wind farm is a key milestone in supplying BASF’s Zhanjiang Verbund site with 100 percent green power by 2025, making BASF a frontrunner in sustainability and a trusted partner in the transformation of the Chinese chemical industry to climate neutrality.