New quality productive forces boost MNCs
China’s focus on advancing its high-end manufacturing sector and fostering new quality productive forces will generate fresh growth points for multinational corporations, making the global economy and supply chains even greener and diversified, said top executives of foreign industrial and technology conglomerates.
At the China Development Forum, which was held in Beijing from Sunday to Monday, they noted that in the context of a rapidly changing global economy, green and strategic emerging industries are poised to strengthen new quality productive forces and drive innovation. These industries are seen as key indicators of the direction of the latest technological revolution and industrial transformation.
New quality productive forces refers to advanced productivity freed from traditional economic growth modes and productivity development paths. It features hightech, high efficiency and high quality, and is in line with the new development philosophy.
Highlighting that the concept of new quality productive forces remains fully aligned with his group’s growth strategy, Roland Busch, president and CEO of Siemens AG, said the German company will complete an expansion project of its digital factory in Chengdu, Sichuan province, by the end of the year.
“Investors are always on the lookout for markets that are at the forefront of innovation and where progress is rapid. China is one such market,” said Busch, adding that businesses in China are rapidly adopting new technologies to maintain their competitive edge in various markets, often surpassing the pace of their counterparts elsewhere. This makes the country a highly dynamic market.
Similar views were shared by Kim Fausing, president and CEO of Danish technology and engineering conglomerate Danfoss Group.
“To capture the business opportunities in China’s green transition, we have been continuously investing in the country, especially in smart manufacturing and innovation,” Fausing said.
In addition to building an IGBT (insulated-gate bipolar transistor) semiconductor power module plant in Nanjing, Jiangsu province, with an investment of 100 million euros ($108 million), Danfoss will launch construction of the second phase of its largest manufacturing and innovation base in Haiyan, Zhejiang province, in April. Upon completion, this expansion will bolster Danfoss operations not only in China but also on a global scale.
“The new Haiyan campus will be one of the largest production sites in Danfoss global history,” said Fausing. “As China takes more steps to fulfill its commitment to further open up, attract foreign investment and reinforce confidence, we look forward to closer cooperation with our local partners to accelerate the formation of new quality productive forces, as well as deepen our involvement in the country.”
To broaden market access for foreign investment, China will remove restrictions on foreign participation in the manufacturing sector and continue to increase openness in sectors such as telecommunications and healthcare, according to an action plan released by the General Office of the State Council, China’s Cabinet, last week.
Emphasizing that China’s ongoing green transformation has created business opportunities for foreign companies operating in the country, Miguel Lopez, board chairman and CEO of Thyssenkrupp AG, said the German firm will expand its expertise in eco-friendly, high-end manufacturing sectors, including wind power, vehicles, green hydrogen, chemicals, cement and steel in the country in the coming years.
Foreign direct investment in China’s high-tech manufacturing sector jumped 10.1 percent year-on-year to 28.27 billion yuan ($3.92 billion) in the first two months, said the Ministry of Commerce.