U.S. firms bullish on China's industrial transformation

The booth of GE Vernova Inc seen at the recent China International Import Expo, which was held in Shanghai. (TANG KE/FOR CHINA DAILY)

China's ongoing transformation and upgrade of traditional industries, coupled with the expansion of emerging sectors, will offer manufacturers in the United States vast opportunities for growth and commercial engagement, said executives of U.S. corporations.

They said this strategic shift not only strengthens China's industrial landscape, but also creates new avenues for U.S. firms to innovate and grow within its market, even against the backdrop of heightened geopolitical tensions and slowing demand for goods in many regions around the world.

Milliken &Co, a U.S. specialty chemical and performance materials company, is expected to maintain double-digit growth in China through 2025, driven by the country's rising demand for high-end textile materials and chemicals.

"With years of accumulated technologies and experience at our innovation center in the U.S., we are aiming to integrate these strengths with new applications in China, creating a unique range of products specifically tailored for the Chinese market," said Ed Zhao, the group's senior vice-president and managing director for Asia.

The expansion of Milliken's Shanghai Technology and research and development center was completed in late 2023, making it the group's largest innovation facility in the Asia-Pacific region.

Zhao said his company hopes to see stable and harmonious U.S.-China business relations. For companies, having a stable and predictable business environment is fairly critical.

The South Carolina-based group currently operates two China plants — in Shanghai and Zhangjiagang, Jiangsu province. In addition to supplying textile materials and chemicals to domestic customers, it also exports to countries such as South Korea, Singapore, Vietnam and India from China.

Exports of foreign-invested businesses in China amounted to 5.77 trillion yuan ($796.91 billion) between January and October 2024, marking a year-on-year growth of 1.9 percent, according to data from the General Administration of Customs.

Also upbeat about the Chinese market, GE Vernova Inc, a U.S. energy equipment manufacturer, believes that China's commitment to energy transition and progress in building a new electricity system is remarkable.

China's large renewable installed base and strong renewable manufacturing capability uniquely enable green hydrogen accessibility and affordability to be achieved in its market first, leading the global energy transition, said Ramesh Singaram, president and CEO of GE Vernova Gas Power Asia.

The U.S. company and Heilongjiang province-based Harbin Electric Corp signed a cooperation agreement to provide two heavy duty gas turbines for CHN Energy Investment Group's Anji power plant in Zhejiang province, during the seventh China International Import Expo in Shanghai last week.

The project is expected to be operational in 2026, with an installed capacity of more than 1.6 gigawatts. This will help ensure the reliability of the energy system and the stability of the power grid, supporting the continued expansion of renewable energy deployment in Zhejiang.

China's continued advancements in market openness, product innovation and business model transformation will solidify its role as a strategic priority for global manufacturing businesses, driving sustainable long-term financial returns, said Peng Bo, a researcher at the Chinese Academy of International Trade and Economic Cooperation in Beijing.

As China has already become a key export hub for many foreign corporations, this reality has brought many growth points for companies, including service sector players, he said.

U.S. express transport company Federal Express Corp announced earlier this week the increased frequency of an international cargo flight between Qingdao, Shandong province and the U.S., alongside the inauguration of its Qingdao international gateway facility.

This initiative will enhance Fed-Ex's network in China and empower local businesses to capitalize on global trade opportunities with more efficient and intelligent logistics services and solutions, said Poh-Yian Koh, senior vice-president of FedEx and president of FedEx China.