Air Liquide China CEO optimistic about China's development

It was in 1999 that I made my first trip to China, specifically to Shanghai, and I have traveled there many times since then, especially during the 10 years that I lived in Southeast Asia. But when I came here once again as the CEO of Air Liquide China in September 2019, I was amazed by how the city had transformed even in the last two to three years. The skyline of Lujiazui area in Pudong still takes my breath away every time I see it.

During the first few months after my arrival, I traveled across China to visit our plants, from Jiangsu to Sichuan, and from Guangdong to Inner Mongolia autonomous region. These trips opened my eyes to the rapid development that is taking place in the country, the all-powerful mobile apps, the extensive high-speed railway network, and the greenery in the vast desert.

Air Liquide has made significant progress in China since the establishment of its first wholly-owned subsidiary in Shanghai three decades ago, benefiting from the country's rapid industrialization and market expansion, as well as highly competent and professional local teams. Business policies and services provided by the central government and local authorities have also played an important role in this process. Governments at different levels work hard to build effective communication mechanisms and platforms to better understand and solve problems faced by entrepreneurs.

I felt strongly about this support when the COVID-19 pandemic struck China in late January of last year. For instance, local transportation authorities in Wuhan and many other cities helped our plants obtain special permits, which enabled us to ensure an uninterrupted medical oxygen supply to hospitals during the lockdown period and to serve other key industries essential to the continuation of life during the crisis.

With the concerted efforts of all sectors, the strict anti-COVID measures paid off and saw business and life return to normal. Thanks to a rapid recovery across all activities in the second half of the year, Air Liquide China managed to create some growth for the APAC region. Fast, efficient and precise services for enterprises reflect the Chinese government's ability to mobilize resources and its determination to create a stable business environment for companies. This greatly enhances our confidence to further expand investment in China.

Last September, President Xi Jinping announced China will aim to reach a carbon dioxide emissions peak before 2030 and achieve carbon neutrality before 2060. Recently, the Shanghai Municipal Government put forward a goal of achieving carbon peak five years earlier than the national goal. This is very impressive and inspiring. I can see the government's determination and action. Maowusu Desert in Shaanxi province has been shrinking thanks to the forest program there, air quality has dramatically improved in Shanghai and many other cities, and my daughters are learning how to sort and recycle garbage at school. Renewable vehicles are now commonly seen on the road.

Air Liquide is also taking actions to contribute to China's low-carbon transformation, with the goal of achieving sustainable development. We are not only increasing the renewable energy portfolio in our own facilities and improving energy efficiency, but also helping customers reduce carbon emissions and other forms of pollution through innovative eco-friendly solutions. We look forward to working with the Chinese government to promote the application of new energy sources such as biogas and hydrogen as a vector of energy transition.

Looking forward, with the 14th Five-Year Plan (2021-25) in view, I believe Air Liquide will see new opportunities emerge from China's high-quality development and high-level opening-up policies. Furthermore, the completion of negotiations for the EU-China Comprehensive Agreement on Investment also indicates China's opening of its market and commitment to creating a better and more level playing field for EU companies in China.

With 2021 signaling the start of a new chapter, Air Liquide will continue to provide safe, reliable, and efficient gas products and services to support China's industrial development and upgrading and energy transition. At the same time, we will work with all of our partners to explore new growth points for the economy and society to build a better world. We are all in this together.

The author is President and CEO of Air Liquide China.

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