Allan Gabor, president of Merck China. [Photo provided to chinadaily.com.cn]

As China has provided a clear policy of openness, transparency and reliability – a clear understanding of how the company can ensure sustainable investments over a long period of time – Merck has initiated more innovation hubs in China, Beckmann said. There will be more to come, in recognition of the innovative environment here that is really moving in a positive direction.

"We think it's great that Hainan has this free trade zone that has enabled innovative medicines to get a fast channel into China," Gabor said, adding that Merck is trying to work with Boao's Super Hospital in therapy areas like oncology and infertility, as well as chronic care disease.

Beckmann also took the Greater Bay Area as an example, describing it as a very important region, specifically for the electronics industry.

"We have very important partners and customers in that region, so it was quite natural for us to move with our innovation hub concept into the Greater Bay Area," he said, adding that the company is building its digital initiatives with local partners, such as Alibaba Health and Tencent.