Foreign firms bullish on China's consumption drive

Editor's Note: As China steps up efforts to boost domestic demand and drive consumption-led growth, foreign corporations are uniquely positioned to seize the opportunities presented by this transformative period. China Daily examines how these companies are aligning with China's new round of high-standard opening-up policies, embracing emerging tech innovation trends and expanding their presence in a market that increasingly values high-quality development and upgraded consumption.

Q1 The 15th Five-Year Plan (2026-30) draft recommendations emphasize high-quality development and the modernization of industrial systems. How do you view China's long-term economic resilience and growth potential? How will your company seize opportunities in the Chinese market to achieve shared growth with China's economy?

Zhao: Focusing on high-quality development and building a smart and green modern industrial system will power the next-level of economic and social development in China. As a global technology leader, Hitachi Energy's purpose is to "inspire the next era of sustainable energy". We are well positioned to support China to realize the goals across the utility, industry, transportation, data centers and infrastructure sectors. With over a century in pioneering mission-critical technologies like high-voltage products and transformers, we are addressing the most urgent energy challenge of our time — balancing soaring electricity demand while decarbonizing the power system. As a company deeply rooted in China for over four decades, we are strengthening our footprint across the country by continuous investment and upgrading of our facilities.

Chen: We are very optimistic about China's long-term growth and economic resilience. The 15th Five-Year Plan's focus on high-quality development and industrial modernization aligns closely with Syensqo's strengths in innovation and sustainability. We see great opportunities in key areas such as air mobility, electrification, smart agriculture and advanced healthcare — all of which depend on advanced specialty chemical solutions. Our strategy emphasizes localization and strong partnerships with Chinese companies, allowing us to support China's goals while expanding our own business. By working closely with local partners, we aim to deliver solutions that drive high-quality growth for both China and Syensqo. We are confident this approach will lead to shared success in the years ahead.

Ren: China boasts the world's most complete industrial system, bolstered by strong policy support for manufacturing and a firm commitment to open development. This gives me strong conviction that the Chinese market has the solid resilience needed to navigate global economic and industrial transformations, and has the solid foundation required for sustained and sound economic development. As an upstream equipment manufacturer, KraussMaffei views this grand blueprint for a world-class innovation environment and advanced manufacturing with full confidence, reinforcing our commitment to deepening our development in China. By leveraging our global innovation resources and our deep understanding of the local market, we are uniquely positioned to meet China's emerging demands in advanced manufacturing, green and low-carbon development, and high-end equipment. We are dedicated to working closely with our Chinese partners to achieve mutual success.

Pichot: China has proven time and again that it can adapt and lead through change. Its focus on high-quality growth and modernization shows a clear long-term vision. For Fortescue, China isn't just a key market — it's a long-term partner. Our relationship spans more than two decades. We supply iron ore to most of China's leading steelmakers. Today, that partnership is expanding as we work alongside green energy and technology leaders to advance the green energy transition. This evolution reflects how Fortescue's engagement with China has grown from traditional trade to deep collaboration. Beyond trade and economics, we're also seeing China take a leadership role in steering global transition — not just adapting to climate challenges, but actively shaping solutions through technology, renewable energy build-out and industrial innovation.

Q2 The plan calls for advancing high-level scientific and technological self-reliance and fostering new quality productive forces. How do you view China's policy direction in innovation and emerging industries? How will your company's R&D or technological innovation in China align with and contribute to this development process?

Zhao: Innovation is the DNA of Hitachi Energy, and it's the cornerstone of our century-old legacy. Hitachi Energy has been constantly going beyond our boundaries to advance the energy system to be more affordable, reliable and sustainable. China's innovation-driven development strategy has created a favorable environment for us to co-innovate with local customers and partners to shape a modern power system. We believe three fundamental technologies will drive the evolution of the power system, namely power electronics, digitalization and service, and sustainable products. We recently helped a local utility company deploy software solutions to its transformers, enabling real-time analysis of operations and conditions. This greatly helps improve transformer availability, reduce unnecessary maintenance and enhance operational reliability.

Chen: We view China's focus on scientific and technological self-reliance as a positive, forward-looking goal. This aligns well with Syensqo's commitment to innovation and advanced technology. In China, our major research & innovation center in Shanghai is our largest in Asia and third largest globally, with 10 percent of our local workforce dedicated to R&I and 30 percent holding PhDs. We invest in green chemistry, advanced materials and digital solutions. Our material application development lab and new automotive lab in Shanghai help us respond quickly to local needs and leverage AI for innovation. By partnering with local companies and universities, we co-develop solutions that support China's transformation and build a more resilient industrial ecosystem.

Ren: The 15th Five-Year Plan charts a clear and determined course for China's future industrial and technological development, underscoring the nation's deep commitment to innovation. At KraussMaffei, we have clearly seen the robust policy support for China's manufacturing transformation and its dynamic innovation ecosystem. This gives us great confidence in partnering with our Chinese industry-chain counterparts to drive high-quality development together. KraussMaffei is focused on building a collaborative, chain-wide innovation ecosystem, one that creates systemic synergy to translate technological breakthroughs into industrial upgrades. We are actively shaping our "Innovate in China, Drive Global Growth" strategy, serving as a model for integrating Chinese and global industrial and innovation chains. As an exhibitor with a perfect attendance record, we are proud to have recently participated in the CIIE for the eighth consecutive year. In our "Future Tech" sector, we will showcase innovative solutions tailored for China's strategic emerging industries, including the low-altitude economy and embodied intelligence, offering our partners clear, proven pathways based on our global successes.

Pichot: What's exciting about China's approach is how seriously it takes innovation, not as a slogan, but as the foundation for long-term growth. The push to build new quality productive forces aligns closely with what Fortescue is doing to decarbonize its mining operations, using R&D and technology to reinvent how industry operates. Our work in China focuses on renewable energy and decarbonization — solar, wind, batteries and energy storage. We see a huge opportunity to learn from China's speed, scale and technical capability as we work together to accelerate the global energy transition.

Q3 China is committed to high-level opening-up and high-quality Belt and Road cooperation. How do you view China's role in global industrial and supply chains? How does your company position itself as a key participant in China's new pattern of openness?

Zhao: China has been upholding its opening-up policy for nearly four decades. Hitachi Energy is a witness, a contributor and a beneficiary of the policy. Over the four decades, we have become a company with a full value chain setup, including over 10 manufacturing sites in China. Now Hitachi Energy is deepening its local presence by expanding investments in several sites. Meanwhile, some of our local operations are becoming an integral part of the company's global supplier base. Following Chinese enterprises "going global", Hitachi Energy has partnered with over 400 Chinese companies across 100+ countries and regions. In the coming years, we will continue to leverage our technological expertise and global resources to collaborate with Chinese engineering, procurement and construction firms to build a green Belt and Road, and to enable global energy transition.

Chen: We see China as a vital hub in global industrial and supply chains, playing a leading role in driving innovation, efficiency, and connectivity across regions. China's commitment to high-level opening-up and high-quality Belt and Road cooperation not only strengthens its own economy, but also creates new opportunities for international collaborations. Syensqo has been present in China for over 40 years. Our "China-for-China" strategy is focusing on localization and building strong partnerships with Chinese companies to build the supply chain. This approach enables us to respond quickly to local needs and contribute to the development of resilient, sustainable supply chains. By aligning our operations with China's new pattern of openness, we aim to be a trusted partner in supporting China's integration into global value chains and advancing high-quality development together.

Ren: China's steadfast commitment to opening-up, combined with its enormous market, dynamic innovation environment and comprehensive industrial and supply chain systems, makes it an undeniable stabilizing force and growth engine for the global economy. This, in turn, provides companies operating in China with a stable and expansive market environment rich in opportunities. KraussMaffei is dedicated to demonstrating, through our own operations, a premier model of win-win cooperation and exchange between China and the world. In active support of the Belt and Road Initiative, our China team's responsibilities have now expanded to include the Southeast Asia market. We are exporting the tangible benefits, mature expertise and innovative digital solutions honed from our success in China to empower local industrial development across the region.

Pichot: China plays a critical role in global supply chains, especially in green energy and manufacturing. Its commitment to openness, free markets and international cooperation gives companies like Fortescue the confidence to work together for long-term mutual benefit. A continued focus on open and free markets will be critical to sustaining this growth, helping China maximize its own benefits and reinforcing its position as a trusted, high-value partner in global trade and innovation. We rely on strong partnerships with Chinese suppliers and technology companies — from equipment manufacturing to renewable infrastructure. These relationships are vital to accelerating the global shift to green energy. As China deepens international cooperation, Fortescue is proud to be part of that journey, not just as a supplier or customer, but as a genuine partner in building a new green industrial ecosystem.

Q4 The plan underscores green development and shared prosperity. How does your company pursue sustainable operations in China while contributing to the Chinese society, local partnerships and inclusive growth?

Zhao: China is accelerating the development of a new energy system, steadily advancing toward peaking carbon emissions and actively addressing climate change to build a beautiful China. These goals are closely aligned with Hitachi Energy's vision.

Sustainable solutions and technologies are a key area for Hitachi Energy to support our partners to build a new type of energy system. For instance, we just launched the world's first 550 kilovolt SF6-free gas insulated switchgear in China this year. The alternative gas in the equipment replaces the potent greenhouse gas SF6, significantly cutting emissions.

On our own sustainability journey, Hitachi Energy runs all sites on 100 percent non-fossil energy in China. In 2023, we launched an education support program in Sichuan province, partnering with schools and NGOs to empower ethnic minority children.

Chen: Sustainability is central to Syensqo's strategy in China. Over 80 percent of our innovation pipeline is focused on sustainable solutions, and we aim for 18 percent of sales from circular products by 2030 — already reaching 16 percent. In China, 100 percent of our manufacturing sites use renewable energy. We have developed digital tools to calculate product carbon footprints, expanded mass balance products, and worked closely with suppliers to meet greenhouse gas standards, thus reducing emissions across the supply chain.

Our solutions help industries lower emissions through electrification, reducing weight, advanced connectivity and resource efficiency. We produce natural vanillin from rice husk waste, recycle metals from used electric vehicle batteries and offer biobased beauty ingredients. These efforts create value for the society, the environment and the economy, supporting China's green and inclusive growth.

Ren: KraussMaffei firmly believes that true sustainability isn't just a feature, but a systemic capability that must be woven into both product function and the entire production process. As an upstream equipment manufacturer, our commitment is to help the industry achieve high-quality development while maximizing environmental benefits.

A prime example is how KraussMaffei's ColorForm technology disrupts conventional processes by seamlessly blending decoration, protection and functionality. This gives customers a clear competitive edge in sustainability, high-volume production and design flexibility.

At the eighth CIIE, KraussMaffei presented a comprehensive showcase of automotive solutions that not only drove the industry's shift toward intelligent and lightweight manufacturing, but also enabled more efficient, green production. Fostering local partnerships and inclusive growth is another vital component of KraussMaffei's deepening commitment to China. Our entry into the smart sanitary ware sector, for instance, began with a partnership established at the third CIIE.

Since then, we have deepened our engagement in this field, pooling resources to foster highly efficient collaboration across the innovation and industrial chains within the South China region. Just recently, this effort culminated in our third Smart Sanitary Ware Forum in Xiamen, Fujian province, which brought together over 100 guests from industry, academia and research to jointly explore cutting-edge technologies and future market trends.