French pharmaceutical leader Sanofi has announced plans to invest €1 billion in a new insulin production facility in Beijing. This represents Sanofi's largest single investment in China and underscores its commitment to addressing the rising diabetes crisis in the region.
China now hosts the largest population of people living with diabetes, accounting for about one-quarter of the global total, according to The Lancet. The new factory will focus on serving the local market, as diabetes continues to present significant healthcare challenges in the country.
Sanofi’s chairman, Frédéric Oudéa, formalized the investment during a visit to Beijing, where he met with Chinese Minister of Commerce Wang Wentao. This new facility will be Sanofi’s fourth production site in China, situated in an economic development zone near the capital.
The investment comes amid heightened trade tensions between the EU and China. The 27-nation European bloc has accused China of undercutting European manufacturers by flooding markets with state-subsidized goods, including electric vehicles. In response, the EU imposed tariffs of up to 45.3% on Chinese-made EVs in October, while Beijing retaliated with tariffs on European brandy.
Despite the strained relations, Beijing continues to encourage foreign firms like Sanofi to expand their presence in China. The move highlights Sanofi's strategic approach to balancing global trade dynamics while addressing critical local health needs.
Sanofi's expansion in China follows the company’s recent $595 million (€565 million) investment in a manufacturing site in Singapore. These moves indicate Sanofi’s commitment to scaling up its global production capabilities to meet rising healthcare demands.
With this new investment, Sanofi aims to solidify its foothold in China, the world's largest diabetes market, while navigating the complexities of global trade tensions.
