Foreign businesses chase opportunities as Chinese economy shifts gears

General Electric (GE) has been quick to adapt to market trends since it started doing business in China over a century ago.

Once drawn to China’s low manufacturing costs, the multinational conglomerate is now seeking opportunities brought by the country’s industrial upgrades as well as its focus on innovation and new energy vehicles (NEV).

“GE will ramp up investments in Industrial Internet in China to foster a center for both hardware and talent,” Rachel Duan, president and CEO of GE China, told the Xinhua News Agency on the sidelines of the 2017 Fortune Global Forum in Guangzhou, South China’s Guangdong Province.

Seeing the country’s potential in innovation, GE is investing big to encourage engineers in China to pursue creative ideas in research and development, as China will be the leading market for the company’s core businesses, including clean energy, healthcare and aviation, Duan noted.

The changing role of the Chinese market for foreign businesses like GE came as the world’s second-largest economy underwent profound transformation, placing more emphasis on quality, efficiency and innovation.

For US auto giant Ford, business opportunities also lie in the government’s vision for a “Beautiful China,” which entails a huge market for NEVs.

“China is taking the lead in the electric vehicle market as there is a real government push to clear the air,” said Bill Ford, executive chairman at Ford Motor Company.

The US car maker announced in November a joint venture with China’s Anhui Zotye Automobile to produce and sell electric cars in China, with plans to launch 15 electric car models in the country by 2025.