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Business / CEO roundtable on new normal

China home to the most advanced UTC research facilities

(chinadaily.com.cn) Updated: 2015-03-13 16:12

Editor's note: With the annual sessions of the National People's Congress and the National Committee of the Chinese People's Political Consultative Conference ending with a call to adapt to "new normal", chinadaily.com.cn sat down with global business leaders to get their views on the reform process and lowering of the growth target.

Here are the excerpts of Xie Liping, President of UTC China Aerospace & Government Relations (UTC- United Technologies Corp).

China home to the most advanced UTC research facilities

Xie Liping

What impressed you the most about the annual Government Work Report released during the ongoing two sessions of China’s top legislative and advisory bodies in Beijing? What do you think was the most important issue raised by the government in this report compared with the previous sessions?

We are glad to see that the government is continuously promoting the strategy of developing new approaches to urban construction, and making strong commitment to environment protection and adoption of energy efficient solutions and technologies. As one of the world’s largest providers of high-technology building and aerospace products and systems, United Technologies is working closely with the central and local governments to address the challenge of urbanization.

In the Government Work Report, Premier Li Keqiang said that the nation’s economic growth rate would be adjusted to 7 percent. Do you think your company should adjust its development strategy in China?

China is still the engine of the global economy, even if the new normal growth target of 7 percent is a bit slower than recent years. We continue to see great opportunities in China and are invested here for the long-term. In addition to keep expanding our product and service offerings, we will stay focused on our core businesses in aerospace and building systems. We are also investing in R&D to create innovative new products that provide a sustainable business advantage and game-changing technologies. China is home to the some of the most advanced UTC research facilities focusing on developing complete building solutions, and smart and efficient building technologies.

Amid the global economic slowdown, especially in developed economies, and China’s economic adjustment, what is your greatest concern about your company’s operations in China?

We know from experience in other global markets that the services sector offers incredible opportunities to create new economic growth while expanding employment. But this is a shift for some regions in China accustomed to manufacturing sector investment. We look forward to encouraging service sector growth in the months ahead. Meanwhile, as companies’ watch costs, UTC is continuously innovating new manufacturing approaches to increase efficiencies and productivity in our facilities so we remain competitive. We are also driving more product development in our integrated and intelligent buildings solutions to help our China customers cut costs.

Which aspect of China’s social and economic reforms should be improved in order to enhance the investment environment to attract more foreign companies?

As a global company with public shareholders who require market data and accurate forecasts, we appreciate being able to plan ahead, so we like understanding where China’s reform policies are headed. More policy transparency and lead-time on proposed policy changes is the better for our company, suppliers, customers, shareholders and local employees. We welcome being part of the reform conversation so we can exchange views about policy ideas that can affect us most.

Do you think your company will develop faster in China than the previous year in terms of growth rate or market penetration?

According to the New Urbanization Plan, China will be the world’s largest green building market, when it reaches its 2020 goal of 30 percent green buildings for new construction. This brings great opportunities for our innovative elevator and other building solutions. Increasing urbanization and a growing middle-class will also increase the demand for air travel. We believe China’s civil aviation is in the early stage of sustained growth, requiring high-efficiency products and technologies. With Pratt & Whitney’s PurePower engine, which provides double-digit improvements in fuel efficiency, noise and emission reduction, UTC is well positioned in the China market to help customers enhance efficiency and support China’s sustainable development.

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