Why is investment in China so important for Honeywell?
We pay great attention to the Chinese market and formulate a long-term strategic plan in China. Due to the hike in labor cost and the slowdown of economic growth, the Chinese market witnessed a decrease in investments by foreign firms. However, Honeywell will continue to increase its investment, because the company focuses more on China’s long-term growth than its short-term slowdown.
Outside the US, China is Honeywell’s largest market, as well as the one that contributes most to Honeywell’s global growth. In 2016, its global revenue amounted to $39.4 billion, of which $2.4 billion was generated in China with all of its business units achieving steady growth.
Tell us about the opportunities in China?
So far Honeywell has built 20 plants in China, equipped with more than 2,600 research and development engineers. Its localization strategy of designed, manufactured and sold in China has proven to be a success. Last November, the company sold over 10 million mini-gasoline turbochargers designed for the Chinese market. This achievement prompted Honeywell to launch this product in Southeast Asia and India, strengthening its global competitive edge.
The Chinese market is a huge platform featured by innovation, cooperation and development for both multi-national companies and local companies. There are still huge opportunities.
With consumption being one of the major driving forces for Chinese economic growth, Honeywell puts more and more emphasis on applying some industrial technologies into the consumer field.
What are the different Chinese initiatives?
As for the policy of Made in China 2025, put forth by the Chinese government, I believe it will benefit Honeywell in the long run, as Honeywell is committed to delivering connected solutions. In terms of Internet of Things, Honeywell boasts product portfolios ranging from buildings, transportation, industry, commerce and homes, with a wealth of experience and core technologies in automation and sensors.
“The Belt and Road” is another Chinese initiative that will bring new opportunities to foreign firms like Honeywell that are deeply rooted in China. Honeywell, together with Chinese companies, is developing emerging markets by establishing 23 subsidiaries with over 3,200 local employees.