China's innovation, transformation pace attracting more investments

People view and take pictures of an industrial robot from Swiss technology company ABB during the China International Industry Fair in Shanghai on Sept 25, 2024. CHINA DAILY

Multinational corporations will continue to scale up their investment in the Chinese market, propelled by the country's thriving landscape of new quality productive forces, a vibrant innovation ecosystem and the steady advancement of a unified national market, said foreign business executives.

They noted that as China ushers in a new era of innovation-driven growth and accelerates the creation of a unified national market, global investors are placing growing emphasis on areas such as digital transformation, supply chain optimization, high-end manufacturing, customized innovation and sustainable growth.

Building a unified national market is essential to unleashing domestic demand potential, facilitating the efficient flow of goods and factors, improving resource allocation and fully harnessing the market's industrial and demand advantages, according to information released by the Research Office of the State Council, China's Cabinet.

Attracted by the promising growth potential of China's unified national market and the country's robust innovation capabilities, Swiss technology company ABB Group plans to further strengthen its presence in China, the world's largest robotics market, through a series of artificial intelligence-driven innovations and new product launches in the coming years.

"As part of our 'local for local' strategy, we will broaden our product portfolio to better serve the fast-changing demands of China's mid-market robotics segment, as well as emerging sectors including electronics, healthcare, logistics and construction," said Marc Segura, president of ABB's robotics division.

The Zurich-headquartered group launched three new robots in China in early July. These new products, manufactured at its $150 million robot factory in Shanghai, address a wide range of automation needs in high-growth sectors including electronics, consumer goods and general industries, from essential material handling to high-end applications like dispensing and polishing.

China is ABB's largest market for robotics deliveries and over 90 percent of ABB robots for Chinese customers are now manufactured locally. This year, the proportion of ABB robotics' domestic suppliers in China is expected to reach around 80 percent, effectively establishing a closed-loop domestic supply chain within the country.

With eight manufacturing sites and an innovation center across China, Eastman Chemical Co, a United States-based specialty materials manufacturer, launched two new lines at its plant in Dalian, Liaoning province, in June, to ramp up the output of its automotive film products.

The US company said this move will play a pivotal role in supporting surging demand for automotive window films and paint protection products in China and across Asia.

"Compared with other markets, the pace of innovation and business model transformation in China is significantly faster, especially in the digital sphere. Chinese consumers are among the most digitally savvy in the world, which continuously drives our teams to keep innovating," said Brad Lich, executive vice-president and chief commercial officer of Eastman.

Data from the Commerce Ministry show that the actual use of foreign direct investment in China's high-tech industries reached 109.04 billion yuan ($14.96 billion) between January and May.

FDI in aerospace equipment manufacturing rose 74.9 percent year-on-year, while FDI in the chemical pharmaceuticals manufacturing sector surged 59.2 percent.

While foreign manufacturers are ramping up investment in high-tech and green industries, companies in the modern services sector are also seizing new opportunities in China's evolving market landscape.

Amid growing demand for flexible office solutions that cater to evolving employee expectations and enhance operational agility, International Workplace Group, another Switzerland-based provider of hybrid working solutions, plans to expand into more lower-tier cities in China with innovative service formats over the next five years.

Marc Descrozaille, CEO of IWG for Asia-Pacific, the Middle East and Africa, said that it is important for the group to adapt its expansion strategy to align with the swiftly evolving hybrid work models as they gain popularity in China.

IWG currently operates 140 workspaces across 35 cities in China and has signed agreements for more than 50 new locations in the country, as well as 899 globally in 2024, underscoring its commitment to addressing the rising demand for flexible workspaces.

"Our growth in the Asia-Pacific region has been strong. We are focused on establishing new centers in suburban commuter towns," he said, adding that the group aims to accelerate its expansion in China, especially in second- and third-tier cities, over the next five years to improve accessibility for remote workers and small businesses.