Shane Tedjarati, president of Honeywell Global High Growth Regions[Photo provided to China Daily]
Editor’s Note: The Communist Party of China has just concluded its 19th National Congress in Beijing. In the runup to the meeting, China Daily asked business leaders from major multinational companies for their views on economic developments here and the country’s global leadership role.
Shane Tedjarati is president of Honeywell Global High Growth Regions, a subsidiary of high-tech manufacturing firm Honeywell International Inc in the United States.
How has China’s economy performed so far this year?
In the first six months, GDP (growth) reached 6.9 percent. High-tech manufacturing was 13.1 percent year-on-year, indicating that the sector was moving toward the middle to high level.
During the same period, the growth of large industrial enterprises increased by 6.9 percent year-on-year, the highest level since 2015. These statistics are highly impressive and encouraging.
Also, the unprecedented digital revolution in China is transforming the way we live and work with exciting new products that connect us in new ways. Meanwhile, Honeywell is evolving into a software industrial company aligned with China’s Internet Plus strategy.
How do you view China’s business environment and what will be Honeywell’s investment strategy?
In the past few years, China has undergone an amazing digital revolution. For example, mobile payment modes, such as WeChat Pay and Alipay, have greatly changed people’s way of life.
As an industrial company, Honeywell is highly committed to building a more connected world, which is smarter, safer and more sustainable.
Which sectors offer the most opportunities for development?
Any industry related to China’s urbanization process has potential for growth. These include transportation, clean energy, safety and security.
During the next 20 years, air and water will be the biggest concern for Chinese consumers, especially the middle class. We are optimistic about energy-saving emission reduction, pollution control, health and the pension industry.
What factors will boost growth this year and in 2018, and what are the challenges facing China’s economy?
Development in growing consumerism, urbanization and emerging industries will promote China’s growth in the near future.
At the same time, the country is facing environmental challenges, which require strong innovation and cooperation. This will present opportunities for multinational companies and domestic enterprises to provide crucial solutions.
We believe China will achieve positive results in the energy and environment fields. Honeywell is uniquely positioned to help the country address air and water pollution. Half of our core technologies are relevant, with a full portfolio across personal protection, air cleaning and emission reduction.
How can China achieve stable and sustainable economic growth?
Energy and environmental issues are important for sustainable development. China plans to adopt more stringent emission standards, forcing traditional enterprises to increase innovation, which will accelerate the industrial upgrading process.
More than 50 percent of Honeywell’s portfolio is related to energy and energy efficiency.
Our company has been partnering with the Chinese government and enterprises to fulfill the country’s energy efficiency goals.
Meanwhile, China has the opportunity to become a pioneer in the digital economy, including big data and the internet of things, which is conducive to sustainable economic growth. The country can become a hive of innovation.
What opportunities will the Belt and Road Initiative throw up for China and the rest of the world?
It promises to raise the level of connectivity and cooperation among dozens of nations that have traded with China for thousands of years. Multinational companies, such as Honeywell, can bring a set of “technology solutions” to Chinese engineering procurement construction companies throughout the value chain.
Honeywell offers a wide range of China-made, world-class solutions.
These include building and process controls, personal protection equipment, and safety and security products. They will help resolve some of the most critical issues being faced in the Belt and Road Initiative construction sector.