Multinationals embrace new opportunities created by China's green transition

This aerial photo taken on July 17, 2023 shows the newly built solar farm of Tianjin Yinghua New Energy Technology Development Co., Ltd. in north China's Tianjin. [Xinhua]

BEIJING -- Foreign businesses are riding on the wave of China's green transition, as the country's pursuit of low-carbon and sustainable development nurtures new opportunities.

China's unswerving commitment to the dual carbon goals of peaking carbon emissions by 2030 and achieving carbon neutrality by 2060 is catalyzing related sectors, such as new energy vehicles (NEVs), the circular economy, green finance as well as the low-carbon transformation of traditional industries.

Danish technology and engineering conglomerate Danfoss aims to capitalize on the long-term opportunities emerging from China's green transition and industrial upgrading.

"Supported by China's massive domestic market, great consumption potential as well as its complete and resilient industrial chain, we believe the Chinese economy, especially its green economy, will unlock huge business opportunities," said Xu Yang, president of Danfoss China.

China has become Danfoss' second-largest regional market globally, and the company's business has a strong alignment with China's green agenda. This alignment is fueling the optimistic view of Danfoss' performance in the country, according to Xu.

Official data showed that China's green and low-carbon development will create a huge increase in economic growth and nurture a 10-trillion-yuan (about 1.41 trillion U.S. dollars) market for investment and consumption each year.

For Xu, the Chinese market's attraction for foreign businesses lies not only in its scale, but also in its speed, as it's a market with a faster pace of product iterations. "It's a challenge, but also an opportunity to sharpen our competitive edge globally by adapting to the rapid changes in the Chinese market," he said.

An inverter compressor product that Danfoss will unveil in the European market this year is developed based on innovations at the company's technology platform in China. "It indicates the Chinese market's core competitiveness is tilting from its complete supply chain toward innovation," he said.

The company will continue to increase its investment in China, looking to further strengthen its supply chain and innovation in China to better facilitate the green transition of sectors such as construction, transportation and industrial upgrading, Xu said.

Danfoss inaugurated its global refrigeration research and development and testing center in Tianjin in May 2023. With a total investment of about 140 million yuan, the center is the company's most advanced and largest facility worldwide.

Like Danfoss, many multinationals have shown a growing appetite for China's green and low-carbon development. A bright spot is the NEV sector, where global players are expanding their footprints.

David Fan, executive vice president and China president of Marelli, a leading global automotive supplier, said the company remains upbeat about China's development prospects despite global economic uncertainties.

The green transformation represents a technological revolution, where international green technologies are reintegrated into China and merged with local innovations to create new collaborative models and market opportunities. "We see immense potential in the Chinese market, especially in the new energy and intelligent vehicle sectors," Fan said.

Focusing on areas such as automotive lighting, electronic systems, propulsion solutions and green technology solutions, Fan said Marelli has established partnerships with China's leading auto companies and plans to further increase its resource investment in the country.

Dr. Holger Scherr, president and CEO of Beijing Foton Daimler Automotive Co. Ltd., and head of the Mercedes-Benz business unit, said the substantial market capacity, demand for high-end heavy-duty truck products, and technological innovation will provide the company with enduring market opportunities.

"We are here for the long run," he said, adding that the company will get prepared with further investment into aspects needed to be competitive not only today, but also in the future.

This year, the Mercedes-Benz truck plant has obtained the plant permit for NEV products, "laying foundation for us to seize further opportunities of technology innovation," he said.