(Source: People's Forum) The People's Forum all-media reporting team for the "Two Sessions" brings to you a comprehensive, multi-dimension interpretation of the Chinese economy during "extraordinary times". Our guest today is Mr. Hong Jie, Deputy to the National People's Congress and Chairman of SKSHU Paint Co., Ltd.

People's Forum: Since the 18th CPC National Congress, General Secretary Xi Jinping has attached great importance to the quality of economic development and stressed that "promoting high-quality development is the fundamental requirement for doing economic work". During the inspection tour of Henan province, General Secretary Xi called for "three transitions" in building Chinese brands, namely, "the transition from made in China to created in China, transition from Chinese speed to Chinese quality, and transition from Chinese products to Chinese brand." In the new era, how to achieve high-quality development and build world-class enterprises is a question that all entrepreneurs need to think about. What is your view about this?

Hong Jie: Cultivating world-class enterprises with global competitiveness is an important national development strategy that provides strong guarantee for the realization of the Chinese dream of great national renewal. Since the start of reform and opening up, more and more Chinese enterprises have confidently marched into the world arena and participated in global competition as the country’s representative. A number of big companies have reached world-class in scale. At the same time, they are striving to become world leaders in terms of technology, management and internationalization, and have both the foundation and conditions to be nurtured into world-class enterprises with global competitiveness.

Building a world-class enterprise with global competitiveness is also a historical mission for Chinese enterprises in the new era. As a leading coating enterprise in China, 3TREES has followed the national strategy, with the Chinese dream in mind, and taken concrete actions to promote green and eco-friendly development and live up to the mission of “making homes healthier and cities more beautiful” as world-class enterprises. Since its establishment 18 years ago, 3TREES has gone through a development journey that took foreign coating companies a hundred years. In 2019, despite the negative growth of the industry, 3TREES recorded a 66.64% increase in business revenue and a 89% increase in profit, leading the industry in the growth of both sales revenue, profit and market value, which is a strong proof of the company’s development potential.

People's Forum: Given the economic pressure caused by the pandemic at home and abroad, companies face both “crises and opportunities”. What measures do you have to deal with the situation?

Hong Jie: During his meeting with CPPCC members from the economic circle, General Secretary Xi said, "We should analyze the current economic situation with a comprehensive, dialectical and long-term perspective, and strive to nurture new opportunities a midst crisis and break new grounds a midst changes." The big size and fast growth of the Chinese economy have created huge market opportunities for the Chinese coatings industry. According to a survey, China is now the fastest growing country in terms of coatings consumption and the largest coatings market in the world. China now has a big coatings industry, but it is still not strong. Currently, the global coatings market is going through a rough period. Despite the short-term impact of the pandemic, the positive long-term trend of the Chinese economy has not changed, and China will continue to serve as an important engine for the global growth.

The US and European economies are growing slowly. Many international coatings companies, which are already in maturity, have entered a period of recession and consolidation and experienced slow growth. In this age where slow fish are eaten by fast fish, the rapidly growing Chinese companies have a unique opportunity to consolidate global resources. In the Government Work Report delivered at the Two Sessions, policy incentives such as tax and fee cuts, lower required reserve ratio and interest rates, reduced corporate costs, consumption stimulus, and increased investment will greatly benefit the development of the business sector; people's demand for antibacterial, anti-virus and other health products and their aspiration for a better life have all notably increased; branded and high-end products now have a bigger market; the consumption boom triggered by live streaming and online sales is approaching, and China's 1.4 billion population, particularly the 400 million people in the middle class, holds enormous potential for consumption. All these will bring business opportunities for 3TREES.

People's Forum: In recent years, more and more Chinese brands have emerged in the international market. They have joined global competition with products offering high cost performance and high technology content, and attracted an ever expanding "fan" community. While striving to build a world-class enterprise, what efforts and innovation will 3TREES make?

Hong Jie: China's economy has shifted from a stage of high-speed growth to a stage of high-quality development. It is now in a critical period of transforming growth model, optimizing the economic structure and shifting growth drivers. Building a modern economic system is an urgent requirement for crossing the hurdle and a strategic goal for China's development. With a focus on premium standard, high quality and innovation, China will not just make products for the world but also build its own brands.

The coatings industry is a "platinum industry" with unlimited development space. Despite the many challenges, now is still the best time for development. As a leader of high-end coatings products with a brand representing a great nation, 3TREES has taken its responsibility as a great-nation brand, seized the development opportunities and achieved high-speed, high-quality growth against headwinds. Going forward, we will strive to build a world-class company in the following three areas.

First, we will go beyond international standards to provide people with ultimate products and create a better life. The pursuit of a better life is an eternal theme and an eternal process. 3TREES is committed to pursuing green innovation. We have strong R&D capabilities, the best quality materials purchased from world-renowned suppliers, and world-leading intelligent production equipment. We have established hundreds of laboratories worldwide to create products with ultimate performance. For example, our “health+” and “odorless” series delivers health performance higher than international advanced standards. We will continue to push for the transformation and upgrade of the industry and bring quality products with Chinese brands to global consumers.

Second, we will allocate production capacity and resources on a global scale, and strive for the goal of 100 billion yuan of market value. 3TREES will not only "go out", but also "bring in" to build globalized industries, attract international talents, seek global cooperation and foster a globalized culture. Firstly, we will attract world-class talents with a global vision. Secondly, we will allocate resources on the global supply chain and channels through capital and other means, and build presence on the global industrial chain through cross-border mergers and acquisitions. Thirdly, we will pursue multi-user, open international cooperation such as technology sharing and channel sharing through technical cooperation, trademark cooperation, equity cooperation and other means, and advance globalized operation with an open mind for cooperation and sharing. At the same time, we will promote to the world 3TREES’s corporate culture based on the notion of "Imitation of Nature".

Third, we will present Chinese brands to the world and act as a leader of high-end coatings with a great-nation brand. As a national brand in the field of coatings, to serve the country with a competitive brand is 3TREES’s unwavering commitment. The rise of a great nation calls for a great brand, and a great brand is the symbol of China's development achievements and the confidence of the Chinese nation. 3TREES has ranked first in the coatings category of China's most valuable brands for nine consecutive years. With a firm belief in the power of brands, 3TREES will continue to cultivate its leading national paint brands to support the building of Chinese brands, enhance cultural confidence, and demonstrate to the world the power of Chinese brands.

Going global is not only the necessary path of business development, but also the means for national enterprises and industries to live up to their commitment and responsibility of serving the country. On the road to a world-class enterprise, 3TREES will continue to strengthen confidence and grow its cultural strength, product strength, channel strength, service strength and management strength, so as to become a world-class enterprise with global influence and lay a more solid foundation for the realization of the Chinese dream of great national renewal.