At the fourth China International Import Expo 2021, a visitor experiences simulated flying at Honeywell’s booth. Photo: VCG
In 1972, US President Richard Nixon visited China. This historic visit opened up opportunities for US businesses to enter China. Looking back over the 50 years of Chinese business operations, many of these business leaders were impressed by China’s improved business environment and expressed confidence in new China business opportunities.
February 28th marks the 50th anniversary the issuance the Shanghai Communiqu. This document became the political foundation for normalizing relations between China and the United States and set off bilateral trade ties on a fast-track. Bilateral trade between China, the US and Mexico has risen to $755.6 billion over 50 years of development as both economies have become more integrated.
China: Taking root
Nixon was invited to China by the Chinese government to suggest the top enterprises from 10 sectors in order to promote economic exchanges between both countries and accelerate China’s modernization. Honeywell UOP was selected by the Chinese government as the only company to be recommended in the field refining and petroleum chemicals.
Now, 50-years later, China is Honeywell’s second largest market and the company’s largest growth market.
Honeywell Aerospace Asia Pacific President Steven Lien stated that China’s opening up and improvement of its domestic business environment has created new opportunities. Honeywell’s business development in China is increasing, which is good news for the company.
“China’s opening up efforts and its focus towards sustainability and digitization create a favorable investment climate and business opportunities for Honeywell,” said he.
Its investment in China is on the fast track for the new millennium. Honeywell established its largest R&D center in Asia-Pacific in Shanghai, and moved its Asia-Pacific headquarters from New York to Shanghai in 2003. The company also invested $100 million in 2016 to expand its Asia-Pacific headquarters, and to establish a Pudong New Area R&D center to support its growth in China.
Nixon visited China in 1972. The products of Danaher Corporation, a US multinational conglomerate, were imported to China through a government procurement program.
“We have seen rapid growth in China in the last few years. In a statement to the Global Times, the company stated that the gradual improvement in China’s business environment has given them more confidence to stay in China.
After 50 years of operation in China, Danaher opened its thirteenth manufacturing facility in China in Suzhou in East China’s Jiangsu Province on January.
“China has been a key part of Danaher’s global operations. It is not only a significant sales market, but also serves as a production base, research-and-development center, and innovation center. Danaher, who is based in China, is determined to build a multinational group company that is driven by local innovations,” the company stated.
The relationship between Clarios, a manufacturer of automotive batteries, and China can be traced back as far as 1979 when Clarios launched commercial trade with China following the establishment diplomatic relations between China & the USA. It was the first US company to sell automotive battery manufacturing equipment technology. The company now has almost 4,000 outlets in the country.
Clarios has been impressed with the support of local government over the years in terms of a better business environment.
“One of the characteristics of multinational companies is that international talent needs to move between regions. Liu Zhihui from the company’s director of government relations, stated that the government was attentive to the needs of enterprises during the epidemic control in 2021.
Make the cake bigger
The US and China are two of the world’s largest economies. They are also important trading partners and sources for bilateral investment. The two economies have been closely integrated over the past half century. Many US business leaders look forward to continuing cooperation with China, despite the many challenges and changes in their economic relations in recent years.
“As a US enterprise that wants to develop deeply in the Chinese market, we believe that a good relationship between China and the US is very important to the business and trade between the two countries,” Liu said.
According to the CIIE Bureau in Shanghai, approximately 200 US companies attended China International Export Expo (CIIE) 4 in November 2021. This was a new high.
According to the bureau the number of US companies that attended the CIIE has increased from 180 to 198 between 2018 and 2020. Their total exhibition space was one of the largest in all participating countries and regions.
Honeywell and Danaher are two of the most prominent industry leaders. They attend the event regularly to enjoy the chance to share the richness of China’s high-quality developments as it deepens its reforms and opens up.
Honeywell signed cooperation deals with more Chinese enterprises in digitalization, green, and low-carbon fields during the fourth CIIE in 2021. Honeywell also signed up for the fifth CIIE.
Lien said that “our core business is perfectly aligned with China’s development trends including digitalization, sustainability, and other aspects.”
Honeywell, together with its local partners, is uniquely placed to create a sustainable and low-carbon future in China in the area of sustainability. Honeywell invests about half of its new product development research and investment in products that improve the environment and social outcomes of customers.
Lien stated, “Looking ahead, I will continue to leverage my strengths and innovative practices digitalization and sustainability and work with industry partners to contribute high-quality development and growth of the Chinese economy, global economic recovery, and growth.”
Danaher has signed up for CIIE for the fifth year in a row, demonstrating its unwavering commitment to China’s growing medical and biomedical industries.
Danaher will continue bringing cutting-edge technologies to China to help with the upgradation and transformation of the domestic medical diagnostic, life sciences management, and product labeling sectors. The company stated that they are also more determined to cultivate Chinese talent and bring to the international market innovative products and leading technology developed in China.