Business / Industries

Global conglomerates find their Chinese sweet spots of success

By WANG ZHUOQIONG (China Daily) Updated: 2015-03-27 09:58

Three decades after its debut in China, 3M Corp has centered its growth strategy on the tenet of "In China, For China". By finding a close match between its diversified and innovative technologies and the surging demands from various sectors of the local economy, 3M has been able to seize several growth opportunities in the world's largest emerging market.

The China for China approach has also helped the company localize its operations in China. 3M China's business focus has migrated through the stages of imports, local products, and local adaption to fueling local innovation.

The company has a research and development workforce of more than 700 scientists and technicians in China, making it a key contributor to its global R&D network.

Honeywell International Inc

The United States-based Honeywell International Inc, a diversified technology and manufacturing company, changed its growth approach in China in 2004. Though the company started with the selling "West to East" products strategy, it later changed to the unique "East for East" strategy. Through this new strategy, the company has been able to identify China-specific needs and cater to them with locally developed innovation.

In 2014, Honeywell generated more than 700 inventions and more than 110 patents in China. Currently, about 30 percent of its revenues in China come from the "East for East" innovations and products.

Its "East for East" solutions also support its "East to Rest" strategy, or the transfer of China-developed innovation to the rest of the world, developed or high-growth markets alike, where they can be further tailored to meet the needs of various markets served by Honeywell. The company has more than 12,000 employees located in more than 30 cities across the country. About 99 percent of them are local Chinese and one-sixth are scientists and engineers.

General Electric

The Fairfield, Connecticut, US-based conglomerate decided to invest $15 million on its "China for China" projects in 2008. These projects aim to support the localization of technology and products, and are positioned to fuel GE's growth in China and around the world. China's first fully homegrown commercial aircraft-the ARJ21-700, which is powered by GE CF34-10A engines-made its maiden flight on Nov 28, 2008.

This was a key step in the country's aviation program, and GE Aviation's on-site engineering team worked closely with customers to ensure a successful first flight.

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