Hitachi upping bid in digital transformation

Editor's Note: China's top leadership met with more than 40 representatives of the international business community in Beijing on March 28. The key message sent was clear — China has been and will remain an ideal, secure and promising destination for foreign investors, and that investing in China is investing in the future. China Daily reporters interviewed some of the executives of the multinationals who attended the meeting. The following stories tell why the global business leaders firmly believe that China's development is the core driving force of the world's economy, and offers exciting, vast opportunities and stellar growth potential.

Japanese conglomerate Hitachi Ltd is ramping up efforts to expand its presence in China, and looking to grasp the immense opportunities arising from digital transformation, sustainable development and green transition in the world's second-largest economy.

Toshiaki Higashihara, executive chairman of the company, said Hitachi has expanded its business in line with China's development direction since it entered the Chinese mainland market more than 40 years ago, and today it is actively developing business in China in a wide range of fields, ranging from social infrastructure to information technology.

Higashihara said China is one of Hitachi's most important markets, and the company will promote solutions to address social issues with "digital, green and innovation" as the driving forces for growth.

In 1979, Hitachi established its office in Beijing and established Fujian Hitachi Television Co Ltd in 1981, the first manufacturing joint venture of a Japanese company in China.

"Through IT, control and operation technologies — and products that we have cultivated over the years — we will continue to focus on our business in China, building on our ties with our good old friend, China," he said.

For instance, the company actively cooperates with Tsinghua University to promote research and development and innovation activities in fields such as environmental protection and healthcare.

Looking forward, Hitachi will make greater efforts to improve energy supply, enhance people's quality of life and revitalize local economies, while contributing to China's regional development, industrial transformation and upgrading, as well as exchanges and cooperation between China and Japan, he added.

Currently, the Japanese company mainly focuses on three business segments globally — digital systems and services, green energy and mobility, and connective industries.

Revenue from the three segments in the Chinese market accounted for about 11 percent of the company's total top line in fiscal year 2023. Its business in China includes power transmission and distribution, grid equipment, as well as elevators. It is also actively expanding its footprint in the healthcare sector.

Higashihara attended the recently concluded China Development Forum, which he said serves as a bridge between Chinese leaders and global leaders.

"We recognize that this is a very valuable platform for understanding China's important measures and sharing efforts to solve global issues through open dialogue," he said, adding, "Through exchanges with high-level leaders, we have gained many insights and strengthened our belief in China's prospects."

Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation, said that China has not only lowered the threshold for foreign investment, but also introduced favorable policies for key industries as well as R&D and innovation, in order to guide and support foreign capital to flow into high-tech manufacturing.

Chinese enterprises could learn advanced technologies and management experience from their foreign counterparts and improve innovation capacity and competitiveness, thereby injecting impetus into economic transformation and upgrading, Zhou added.

China's heightened efforts to promote high-standard opening-up and stabilize foreign trade and investment — such as the shortened negative list for market entry and pilot free trade zones — have created favorable conditions for foreign businesses to invest in China, said Zhang Jianping, deputy director of the academic committee at the CAITEC.