Q&A: What the year has in store

Editor's note: The World Economic Forum, which began on Jan 17 in Davos, Switzerland, will go on until Jan 20. It is focusing attention on the prospects for the Chinese economy and how it will intertwine with global finances against the backdrop of increasing uncertainties. China Daily has interviewed 18 chief executives of leading multinational companies to know their outlook for China as well as their corporate strategies for 2017.

1. What's your expectation for China's economic growth in 2017? In this regard, what are the major opportunities and challenges for China?

2. How would you align your business strategy with the main themes of China's 13th Five-Year Plan (2016-20) like innovation, upgrade of manufacturing capability, green growth and urbanization?

3. What are your expectations with regards to 2017 revenue and profit of your business in China?

4. What kind of impact will a stronger US dollar and a more flexible renminbi exchange have on your business in 2017?

5. Do you plan to increase your investment in China?

Mark Costa, chairman and chief executive officer of Eastman Chemical Company.

A1 Although the country is shifting from a high-growth economy to a moderate-growth economy, China is and will continue to be one of the world's most important growth engines. We believe the country will continue to head in a healthy direction in 2017.Some of the positive signs include strong income growth for consumers and consumption and a drive for a greener China such as water and air quality improvements. However, sometimes it is challenging for China to keep its growth in an appropriate range while solving many development problems as part of its structural reform efforts.

A2 The main themes of innovation, manufacturing upgrades and "green" growth for China's 13th Five-Year Plan period match what we at Eastman are striving for and are also our key growth drivers. As the global specialty chemical company, we are focusing our growth efforts on key global market trends including Health & Wellness, natural resource efficiency, the emerging middle class and feeding a growing population and we have a strong product portfolio that addresses these issues. We will continue to drive local innovations to meet the local business needs, expand our investments in China and help the country to achieve sustainable development through our innovative products and solutions and corporate responsibility efforts.

A3 For Eastman globally, we are accelerating our journey toward a specialty chemical company. We enter 2017 well positioned to benefit from our strong portfolio of specialty businesses which leverage world-class technology platforms to deliver solid growth in attractive end markets and accelerated earnings growth from high value and innovative specialty products. China is in an important phase of its development with an improved legal and social system to benefit people's living standards. With growing needs for high-quality products and solutions especially in new materials, we believe we will achieve good business development in China in 2017 with local application businesses.

A4 The impact of a stronger US dollar and a more flexible renminbi exchange rate on Eastman is limited if the exchange rate change is not very significant. While a weaker renminbi provides some benefits to local players, customers choose us for our consistent records of delivering innovative products and solutions while maintaining a commitment to safety and sustainability.

A5 China is and will continue to be a key market for Eastman. Chinese labor cost may be rising fast, but so is Chinese productivity. China is still the world's largest exporting nation and its talent pool is large and flexible. The country's supply chain is sophisticated and flexible. China is a large market with a middle class larger than both the US and EU, and China's consumer market is very attractive for companies like Eastman. With China's focus on green GDP and sustainability, we are seeing it as an attractive place to do business and we are committed to expanding our investment here.