Wang Chunwen: Innovation is becoming the driving force for high-quality economic development in China

【Multinational Enterprises in China】

　　Editor's note: I walked into a multinational enterprise in China and listened to the CEO of a foreign enterprise talking about "opportunities for Chinese-style modernization" and explaining "the way of economic globalization".

　　China News Service , October 21, title:

　　China-Singapore Finance Wu Jiaju

　　"I have full confidence in the future development prospects of China's economy. The Chinese economy is very resilient and there is still a lot of potential to be tapped." Recently, Wang Chunwen, member of the executive board of British Halma Group, chairman and president of the Asia-Pacific region, was interviewed by Zhongxin Finance and Economics When said so.

　　Wang Chunwen said that in the next ten to fifteen years, the Asia-Pacific region, especially the Chinese market, will be an important growth engine for the development of the entire group.

The interview transcript is as follows:

Zhongxin Finance: Over the past decade, China's economy has undergone profound changes.

How do you view the development of China's economy in the past ten years?

What aspects of the Chinese economy have impressed you the most?

Wang Chunwen:

I have worked and lived in China for more than 20 years, serving different multinational companies.

During this period, I was deeply impressed by the rapid development of China's economy, especially the high-quality and sustainable development trend in the past ten years.

According to data from the National Bureau of Statistics of China, from 2013 to 2021, China's GDP will grow at an average annual rate of 6.6%, ranking among the top of the world's major economies, much higher than the world average growth rate of 2.6% and the average growth rate of developing economies of 3.7% during the same period. speed.

In the past ten years, China's average contribution to world economic growth has reached 38.6%, more than the sum of the contributions of the G7 countries.

　　For the British Halma Group, which focuses on manufacturing and investment and mergers and acquisitions, there are several aspects that are very touching.

　　First, China's open and inclusive economic and investment policies.

The development of foreign companies in China has always received great support, and China is currently further loosening market access for foreign capital.

The Halma Group has achieved good development since entering China, and has been able to meet our global unified performance requirement of doubling every five years. Last year, we achieved 16% growth in the Asia-Pacific region.

　　Second, the transformation of China's intelligent manufacturing.

The rapid development of digitalization and industrial Internet in China has brought us many business growth opportunities.

Halma Group is also accelerating the company's overall digital transformation, cultivating digital product research and development capabilities, and providing customers with digital solutions.

In the last fiscal year, Halma's digital products and solutions revenue increased by 15%, accounting for more than 40% of the group's total revenue.

　　Third, China's market norms for safety, environment and health are getting higher and higher.

Halma UK focuses on global market segments in the field of safety, environment and health, making acquisitions and expanding business, which brings good opportunities for our domestic acquisitions and mergers in China.

On the one hand, we have increased product research and development and innovation according to local needs, and adhered to the development strategy of "In China for China". The development goal of "In China for Global".

Zhongxin Finance: As a multinational company, what is the opportunity for Halma to enter China?

What is the attractiveness of the Chinese market for multinational companies?

Wang Chunwen:

The opportunity for us to enter is to see that China's long-term planning and vision are highly consistent with Halma's purpose, such as green economy, healthy China, digital China, etc.

We are very honored and very willing to use our technology and products in China to work together to promote people to be safer and healthier, to live in an environment where people and nature coexist in harmony, and to take a good responsibility as a Chinese corporate citizen.

　　Of course, in terms of business development, when we considered entering, we also saw some very good favorable policies and opportunities in the Chinese market in the fields where we are based.

For example, the business growth opportunities brought about by China's rapid economic growth, China's huge market size, complete industrial system and efficient supply chain advantages, including the resilience to maintain long-term growth in an uncertain environment, attract us to continue to invest and develop the Chinese market.

　　In the next ten to fifteen years, the Asia-Pacific region, especially the Chinese market, will be the growth engine for the development of the British Halma Group.

Since the 1990s, we have had subsidiaries entering the Chinese market to carry out sales in China; since 2006, Halma UK has successively set up offices in Shanghai, Beijing, Guangzhou, Chengdu and Shenyang; Set up a factory in Shanghai, initially providing production, operation and sales services for its four subsidiaries.

Up to now, we have nearly 40 subsidiaries operating in China.

　　In addition, the digital development and innovation environment of the Chinese market is also very attractive to foreign companies.

In 2021, China's investment in research and experimental development will rank second in the world.

. It is our long-term vision to participate in the innovation ecosystem and cooperate with more local enterprises for win-win results.

Zhongxin Finance: Halma's business includes providing solutions for energy transition and other issues. How does Halma see

the prospect of China's energy transition and

Wang Chunwen:

I think China's energy transition and low-carbon development prospects are very broad.

China takes the "dual carbon" goal as its national strategy and shows the world its determination to reach carbon peaks and become carbon neutral. This goal will profoundly affect the development of China and the world.

The "two-carbon" goal is leading the energy revolution, accelerating global technological innovation, promoting industrial transformation and upgrading and high-quality economic development, accelerating the construction of ecological civilization, and promoting new international cooperation.

　　I am very impressed with these green achievements in China.

First, China has adopted a variety of low-carbon energy routes. The installed capacity of wind power, photovoltaic power and other green power and the production and sales of new energy vehicles are the world's largest, achieving a cumulative reduction of about 34% in carbon dioxide emissions per unit of GDP.

Second, the contribution rate of China's scientific and technological progress to growth exceeds 60%, indicating that China has completely shaken off the previous model of high investment, high consumption, and high pollution to support development.

Zhongxin Finance: In China, ESG is getting more and more attention.

How does Halma view the dissemination and future development of ESG concepts in China?

Wang Chunwen:

The concept and practice of ESG has become a hot topic in China and one of the common languages ​​of international communication.

ESG takes into account both economic and social benefits, and is in line with China's goal of emphasizing green, high-quality sustainable development, and is of great significance to the healthy and stable development of China's capital market.

Vigorously promoting the concept of ESG investment is also an inevitable choice for China to integrate with the international community, which will attract more foreign capital.

　　In the more than 120 years of development, Halma Group has also adhered to the ESG development concept.

Our three business segments and development objectives are closely related to Environment (E), Society (S) and Governance (G).

Our growth strategy places great emphasis on the positive impact of the business, and this is at the heart of our ability to be sustainable: continued business growth, coupled with the positive impact we bring through technology, provides sustainable value creation .

The simple formula is: strong growth + sustainable returns + positive impact = long-term sustainable value creation.

Nearly two-thirds of our revenue contributes to the four United Nations Sustainable Development Goals closest to our business: health, clean water, innovation and infrastructure, and sustainable cities.

　　At the same time, we believe that the implementation and practice of ESG need to respond to local social needs and public expectations, so we continue to invest in localized innovation and governance.

Zhongxin Finance and Economics: In recent years, China has introduced many policies to encourage foreign investment in terms of taxation and land use.

Which policy are you most concerned about?

How do you think these policies will help foreign companies?

Wang Chunwen:

We are more concerned about tax policy, talent policy and foreign service policy.

Our recent Asia-Pacific production and R&D base integration project in Shanghai has successfully settled in Shanghai Xinzhuang Industrial Park some time ago.

The well-serviced office environment in the park, the tax incentives given by the district government and the park, and the talent support policy are all attractive to us.

　　In the years since entering China, we have also deeply felt the changes in the Shanghai government's continuous optimization, attracting foreign investment and international talents, and improving foreign services, such as launching more characteristic industrial parks to expand new space for foreign-invested enterprises to gather and develop; expand digitalization Office work, simplify the approval process; provide more convenience for international talents in visa residency, entry and exit, housing, medical care, etc.

Zhongxin Finance: The current global economic situation is more complicated and severe. Will this affect Halma's business in China?

How do you view the development prospects of China's economy?

Wang Chunwen:

I have full confidence in the future development prospects of China's economy. China's economy is very resilient, and there is still a lot of potential to be tapped.

From the perspective of Halma's strategy, we believe that in the next ten to fifteen years, the Asia-Pacific region, especially the Chinese market, will be an important growth engine for the development of the entire group.

In terms of China, we have a long-term commitment in the Chinese market. Our purpose is very consistent with China's "14th Five-Year Plan" and the long-term and sustainable development needs of China's market development. We will be committed to the continuous development of products and technologies in China. for a safer, cleaner and healthier future.

(Finish)