China's ongoing transition to slower but better-quality growth will benefit multinationals, said Douglas Oberhelman, chairman and CEO of U.S. construction and mining equipment producer Caterpillar.
No economy the size of China can sustain double-digit growth, and the transition to 6.5-7 percent growth is "very healthy," he said on the sidelines of the China Development Forum 2016, which concluded Monday in Beijing.
Oberhelman spoke highly of the 13th Five-Year Plan released last week, saying that "what's contained in that plan is very appropriate for the current times."
"China is leading some very deep structural reforms that will improve growth down the road, if accomplished," said the senior executive.
According to him, China's pursuit of cleaner air will create business opportunities for Caterpillar, as it can produce a broad range of environment-friendly machines.
Oberhelman said the Belt and Road initiative can also translate into growth for foreign companies like Caterpillar, which has already set up a number of divisions to concentrate on this initiative.
The chairman said China's manufacturing sector is improving as Caterpillar's excavators built in China are of higher quality than those produced in Japan. "Customers in some places in the world prefer made-in-China excavators," he said.
Despite the current economic slowdown, China is still growing twice as fast as the global average, he said, adding that a growth rate of 6.5-7 percent for the next five years will require more investment.
"We had some major investments in China over the last 20 years. We will still be investing in China in the future," said Oberhelman.
