FOREIGN businesses are capitalizing on the momentum of China’s green transition. China has pledged the dual carbon objectives of peaking carbon emissions by 2030 and achieving carbon neutrality by 2060. The objective is energizing sectors like new energy vehicles (NEVs), the circular economy, green finance, and the low-carbon transformation of traditional industries.

Danish technology and engineering conglomerate Danfoss is ready to seize the long-term opportunities arising from China’s green transition and industrial evolution. The country has emerged as Danfoss’ second-largest regional market worldwide.

Xu Yang, president of Danfoss China, said the company’s operations closely align with China’s green agenda. “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 substantial business opportunities,” Xu said.

Official data indicates that China’s green and low-carbon development will create a formidable 10-trillion-yuan (US$1.4 trillion) market for annual investment and consumption.

Xu highlighted that the allure of the Chinese market for foreign enterprises lies not only in its scale but also in its pace, characterized by rapid product iterations.

He added, “It’s a challenge, but also an opportunity to enhance our competitive edge while adapting swiftly to the evolving Chinese market.”

An upcoming inverter compressor product to be launched in the European market by Danfoss stems from innovations originating at the company’s technology platform in China. Xu said, “It underscores that the core competitiveness of the Chinese market is shifting from its extensive supply chain towards innovation.”

Danfoss intends to escalate its investments in China, looking to further strengthen its supply chain and innovation capabilities in the country to support the green transformation in sectors such as construction, transportation, and industrial upgrading, Xu said.

In May 2023, Danfoss inaugurated its state-of-the-art global refrigeration research and development facility in Tianjin with a total investment of around 140 million yuan, which is the company’s most advanced and largest facility worldwide.

Inspired by Danfoss’ success story, numerous multinational corporations are increasingly drawn to invest in China’s green and low-carbon industries. Notably, in the NEV sector, global entities are expanding their presence.

David Fan, executive vice president and president of Marelli China, a prominent global automotive supplier, expressed confidence in China’s development despite global economic uncertainties.

International green technologies are being seamlessly integrated into China and fused with local innovations to forge novel collaborative models and market opportunities. Fan said, “We perceive vast potential in the Chinese market, particularly in the new energy and intelligent vehicle sectors.”

Concentrating on segments like automotive lighting, electronic systems, propulsion solutions, and green technology solutions, Fan highlighted that Marelli has forged partnerships with leading Chinese auto firms and intends to increase investment in the country.

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

He said, “We are here for the long haul,” underscoring the company’s readiness to invest further in areas that will guarantee competitiveness both presently and in the future.

The Mercedes-Benz truck plant recently secured the permit for producing NEVs this year, paving the way for future technological innovations, as per Scherr.

(Xinhua)