Johnson Controls eyes digital transformation

United States-based smart building solutions provider Johnson Controls will enlarge its footprint in China and further seize the tremendous opportunities arising from the country's efforts to bolster digital transformation, develop advanced manufacturing and drive green, sustainable growth.

"China's focus on digitalization and decarbonization aligns seamlessly with our core expertise. We are well positioned to support China's advancement in fostering new quality productive forces," Anu Rathninde, president of Johnson Controls Asia-Pacific, said in an exclusive interview with China Daily.

"We have seen growth opportunities supported by policies that advance reform and opening-up, and we look forward to growing our business even further," Rathninde said. This year marks Johnson Controls'30th year of doing business in China.

He said China's economy is propelled by new energy, digital transformation and some key industries like smart manufacturing and modern services, which creates a large number of opportunities for sustainable innovation.

The company has been continuously focusing on its industrial innovation capabilities in alignment with China's advanced manufacturing and digital economy, Rathninde said, adding that they support the development of artificial intelligence and digitalization with sustainable data center solutions.

As AI is transforming the world and data centers are leading the way, the company is promoting timely, efficient and sustainable data center deployments across countries, while providing solutions designed specifically for data center thermal management.

It has sped up localization pushes by establishing a global compressor manufacturing center in China and deepening cooperation with Chinese partners, so as to bolster the development of green buildings, smart manufacturing and renewable energy. Rathninde said these partnerships support China's dual carbon goals and digital economy.

"Looking ahead, we will continue to focus on innovation and digital transformation to advance the green and high-quality transformation of buildings and cities, aligning closely with China's economic, technology and sustainability goals together with local partners."

He said that as China accelerates urban renewal and smart city initiatives, prioritizing the retrofitting of aging buildings and sustainable infrastructure, the company is well positioned to draw on its expertise in smart building solutions, offering a diverse range of products and digital services to optimize building performance, enhance energy efficiency and drive net-zero targets.

Moreover, China's growing demand for high-quality and sustainable products driven by technological innovation also fuels new dynamics in industries like electric vehicles, smart devices and commercial buildings.

The company's solutions for data centers, semiconductors, electronics, new energy, modern agriculture and commercial buildings can support these industries to meet evolving growth needs, Rathninde said, adding that he is confident that future growth in China will continue to be robust given the potential for new demand from emerging and promising industries.

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 research and development and innovation, in order to guide and support foreign capital to flows into the advanced manufacturing sector.

The increase in foreign investment in China's high-tech industry will yield positive returns for both sides, Zhou said, adding that 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.

The Ministry of Commerce said that in the first five months, 24,018 new foreign-invested enterprises were established on the Chinese mainland, representing year-on-year growth of 10.4 percent. Foreign direct investment on the Chinese mainland, in terms of actual use, reached 358.19 billion yuan ($50 billion) during the period.

Zhu Keli, founding director of the China Institute of New Economy, said the country's intensified efforts to further reform the institutions and mechanisms for promoting foreign investment have demonstrated its firm determination to foster a world-class, market-oriented business environment governed by a sound legal framework.