Meanwhile, Merck's investment strategy in China has not changed but the healthcare and chip materials maker is "mindful of the potential risks", Garijo noted in the Reuters Newsmaker interview. China is a key region for the semiconductor industry and drug companies, but geopolitical challenges are growing. While Taiwan has lived under the Chinese threat for decades, war games in early August have rattled nerves in the semiconductor industry. There is a need for "constructive dialogue" with markets like China that are important to German industry, and Merck, said Garijo. "We are mindful of the potential risks ... but our investment policy has not changed," she said.

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