Frank Pan Interview on Cotecna and the TIC Industry in China

Frank PAN, VP North Asia at Cotecna, has nearly 20 years of executive management experience in multinational companies and within the TIC industry. In a recent interview with Shanghai Media, Frank discussed in detail on a number of subjects, including the TIC industry in China, Cotecna’s strategy, and the importance of innovation. Please find some of the key takeaways and quotes from Frank’s interview below.

On the benefits of establishing Cotecna’s regional headquarters in Shanghai

On May 24th, 2021, Cotecna was awarded the certificate of “MNC’s Regional Headquarters” at the Certificating Ceremony held by the Shanghai Municipal Government, with our North Asia office having been registered in Shanghai’s Putuo District.

Frank Pan said, “Cotecna entered China in 2004. At that time, its China headquarters was located in Beijing, mainly focusing on our Government and Trade Solutions. As its China business kept growing, Cotecna decided to re-visit and adjust its market plan, including selecting a new location for its China headquarters, so as to meet its development needs and integrate the group’s overall global strategy.”

Cotecna’s confidence in setting up its regional headquarters in Shanghai was based on the fact that the local government has a sophisticated system to support enterprises, transparent and open policies, as well as Shanghai’s prospect of prosperity and sustainable growth.

“Relying on the regional headquarters based in Putuo District, Cotecna will continue to focus on the China market with Shanghai as the center, continuously expanding its China business scope by consolidating top-notched professional resources in the world and enhancing Cotecna’s expertise and capabilities. Through providing facilitation solutions, Cotecna can help more global customers to enter the China market and more Chinese customers to go global, ultimately contributing to a safer, more efficient and more sustainable global supply chain.”

On China’s growing TIC industry, and Cotecna’s ambition and strategy

"Since its establishment, Cotecna has been developing steadily and focusing on fields where it has competitive edges. China’s reform and opening-up has led to rapid development of many leading international TIC players…[and] we have identified China as one of our most important [markets].”

Intra-regional trade in the Asia-Pacific region will continue playing an important role in global trade in the future. At the same time, certification and accreditation has been identified as a key area for cooperation in the Belt and Road initiative, meaning TIC will play a bigger role in facilitating trade, enhancing mutual trust, and promoting international quality co-governance.

“Today, the TIC industry is becoming so important that it bears relevance to the national economy, as well as personal and national security. Cotecna shoulders the mission of implementing China’s “dual circulation” strategy (in which domestic and foreign markets reinforce each other with the domestic market as the mainstay), building a high-standard market system, and facilitating mutual recognition of Chinese and international standards. Meanwhile, Cotecna also undertakes more social responsibilities in ensuring safety and environmental protection.”

In terms of export trade, from benchmarking standards to breaking trade barriers, Cotecna is confident that it can help Chinese enterprises to go global. In terms of import trade, Cotecna can also help overseas companies to effectively import their products to China in compliance with Chinese laws and regulations.

“[At Cotecna] we also firmly believe in the overriding importance of development and China’s impact on the global economy, and the huge potential of China’s domestic market. We have a comprehensive overall plan for our China market, viewing it as the most important global platform for Cotecna’s investment strategy. On one hand, we will actively promote Cotecna through various channels to increase our presence. On the other hand, we will continue strengthening our expertise and capabilities, to provide our customers with top-notched services, and contribute to the growth of the Chinese economy and the global economy as a whole.”

On the constant drive to innovate within the TIC industry

The TIC industry has a long history, dating back to the 18th century when classification societies first began reporting the condition of ships and equipment to shipping underwriters. Today, supply chains have become more complex than ever. Customers, including vendors and end-users, have higher expectations on quality. This generates an increased demand for independent third-party TIC services. Companies need to ensure that products, infrastructure, and processes meet the required standards and regulations in quality, health and safety, environmental protection, and social responsibility, in order to reduce the risk of failures, incidents, and disruptions.

“TIC in China grew from scratch and has contributed to new developments in the global TIC industry. Today, China has surpassed the United States in becoming the largest market in the world and there are as many as 50,000 TIC companies [operating in the country]. It is foreseeable that China’s TIC industry is bound to embrace a multi-dimensional integration for fully meeting international standards. To put it simply, we can make a difference.”

As the head of Cotecna’s North Asia Area, Frank said, “My priority is to have an accurate and in-depth understanding of industrial development trends and international situations and leverage my own and our team’s professional experience, to formulate Cotecna’s North Asia development strategy. At the same time, I also keep close communications with our headquarters in Geneva regarding market insights and predictions for the group’s global strategic planning and ensure its implementation. China is the most important market in the world and the most important global platform in the Group's global strategy. I am fully aware of my responsibilities and mission. Our industry never stops developing, and technical services should also keep developing and innovating across new technologies and new fields. Like rowing a boat upstream, if you stop moving forward, you fall back.”

On what innovation means in practical terms

“First and foremost, [when we talk of] innovation we mean innovation of products and technologies, which helps to improve solutions and efficiency. This not only brings an in-depth development of the entire industry, but also accelerates the development of society [as a whole].”

“Secondly, innovation requires us to continuously improve our ability of foreseeing customer needs. We need to make best efforts to understand customer needs in advance and provide our services on a tailor-made basis, in order to effectively enhance customer adhesion.”

Finally, Frank said, the TIC industry is closely related to the national economy, international trade and people’s everyday life, and will have a profound impact on cultural environment, ecological environment, and social governance in the future. It is indeed lofty enough for us to consider that we have a sense of responsibly and mission to continue innovating and progressing, endeavoring to become an indispensable partner for the society and enterprises we serve.

About Cotecna

For over 50 years, we have been supporting agriculture, food and pharma, minerals and metals, and consumer products supply chains all over the world. We provide testing, inspection, and certification services to help our clients navigate evolving regulations, ensure product compliance, and support their sustainability journey.