MNCs feeling buoyant about China in 2022

Steven Lien, president of Honeywell China and Aerospace Asia-Pacific

A1 We believe China has the conditions and capabilities to keep the economy running within a reasonable range this year despite headwinds. As stability is the key word in the economic plan that was laid out at the recently concluded Central Economic Work Conference, we expect prudent and effective macro policies, enhancing support for innovation in science and technology, and vitalizing development through further opening-up.

We are optimistic about China's economic growth and believe the importance of the Chinese market will further grow.

A2 Among all of the markets in which Honeywell operates and develops, our growth in China continues to be robust with a strong market position. China has developed into Honeywell's second largest single market and the company's largest growth market. China's opening-up efforts and its focus on sustainability and digitalization create a very favorable investment environment and business opportunities for Honeywell.

A3 China has mapped out the priorities for its economic policy in 2022 at the recently concluded annual Central Economic Work Conference, stressing stability and more focus on supporting growth. It is encouraging that the conference has stated that the nation will promote institutional opening-up, better implement national treatment for foreign enterprises, attract more multinational companies to invest, and promote the early implementation of major foreign investment projects.

A4 Honeywell is uniquely positioned to shape a more sustainable future in China together with local partners. In fact, about half of Honeywell's new product introduction research and development investment is directed toward products that improve environmental and social outcomes for customers.

A5 According to data released by the Ministry of Commerce, foreign direct investment into the Chinese mainland rose 15.9 percent year-on-year in the first 11 months of 2021. It has shown that China's improving business environment and market resilience have maintained the confidence of foreign companies to invest and develop in China.

In 2021, Honeywell continued to expand its investment in China. For example, Honeywell Building Technologies business group launched its new innovation center in Xixian New District of Xi'an. The center leverages Honeywell's innovative R&D capabilities to enable the digitalization in western China, and further fulfill Honeywell's commitment to long-term development in China.