TOKYO, Nov. 11 (Xinhua Silk Road) -- China will become Panasonic's most important source of innovation in the future, Masaharu Nakayama, executive officer of Panasonic Holdings Corporation, told Xinhua in an interview in Tokyo recently.
With China's comprehensive supply chain, rich research and development (R&D) talents and an environment conducive to rapid technological innovation and validation, Panasonic will continue to deepen its presence in China while advancing two key strategies, "China for China" and "China for Global," Nakayama said.
Panasonic has been in China for 48 years. China is now not only the company's largest market outside Japan, but also one of the most strategically-important markets in its global operations, he said.
Therefore, the company has been a nine-time participant in the China International Import Expo (CIIE). "The CIIE sets stage for the global debut of Panasonic's new products and technologies, and plays the role of a bridge connecting us with China, allowing us to better understand, invest in and serve the market," said Nakayama.
Nakayama believed that the CIIE and other international expos reflect China's commitment to opening up, further boosting Panasonic's confidence in the Chinese market.
In his view, the evolution of Panasonic's exhibition themes and contents at CIIE reflects China's ongoing economic and social development.
In the expo's early editions, Panasonic focused on products and services related to health and elderly-care, in line with the Healthy China 2030 vision. After China announced its dual carbon goals, green and low-carbon development became another focus of its displays. At the ninth CIIE, Panasonic has showed innovations in three major areas, including electronic components, solutions and smart homes across an exhibition area of more than 900 square meters.
In terms of industrial trends, Nakayama highlighted the profound changes brought about by artificial intelligence (AI). China's AI development is accelerating from technological exploration in virtual environments toward applications in the real world, with diverse scenarios from smart manufacturing to smart homes, he said. These applications can help enterprises reduce costs and improve efficiency, improve people's livelihood and boost the efficiency of social operations.
Panasonic has thus made AI infrastructure one of its core strategic priorities in China. The company's high-performance electronic materials factory in Suzhou, east China's Jiangsu Province, began operations in May this year. In October, it further announced an additional investment of about 1.27 billion yuan (about 190.22 million U.S. dollars) to build a second-phase facility there, which is expected to begin operations in August 2028. The new Suzhou facility, together with its existing manufacturing base in Guangzhou, brings the company's total investment in the two locations to 2.2 billion yuan. Both facilities specialize in developing and producing multilayer circuit board materials for AI systems.
For Panasonic, China is far more than a market, Nakayama said. Its strong supply chain, rich talent pool and favorable environment for technological innovation set it apart from other markets. "China will become Panasonic's most important source of innovation in the future," he said.
China has long served as an important supply chain base for Panasonic. Its extensive industrial clusters and complete industrial ecosystem provide the company with a stable, reliable, flexible and efficient supply chain, Nakayama said.
With more than 10,000 R&D employees in its China and Northeast Asia operations, Panasonic has built a strong local innovation team, Nakayama said. China's fast-evolving market and intense competition have further spurred the development and refinement of new technologies and products.
"Success in China is a prerequisite for success globally," Nakayama said, citing a rice cooker designed and developed by its Chinese team that won Japan's 2025 Good Design Award.
Looking ahead, Panasonic plans to expand its R&D efforts in China and tap the country's strengths in manufacturing and supply chains. The company will develop and refine new technologies and products in China before taking them to global markets, Nakayama said.
(Contributed by Li Shimeng)
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