From left to right: Janice Hu, China country head, UBS AG; chairperson of UBS Securities Co Ltd; chair of Global Banking China, UBS; Anu Rathninde, president of Johnson Controls Asia-Pacific; Xie Xue, CEO of Vale China; George Xu, Airbus executive vice-president and Airbus China CEO. [Photo provided to chinadaily.com.cn]
Editor's Note: This year marks a critical milestone as China concludes its 14th Five-Year Plan. To help in assessing the success of the process, we have asked multinational executives to share with our readers their insights about their business achievements in the past few years and further expectations in the years to come.
Q1 What are your expectations for the ongoing two sessions? Do you expect any specific policy measures for further deepening reforms and expanding high-standard opening-up? What more should China do to create a more enabling business environment for foreign investors?
HU: We expect the government to prioritize "stabilizing growth" as the central task and emphasize boosting domestic demand with more supportive macro policies. The government may follow a modest overall fiscal expansion, with more monetary and credit easing and policy rate cuts. We hope to see faster implementation of structural reforms and opening-up, including greater opening of the services sector to private and foreign businesses, further SOE reform and measures to increase regulatory transparency, which are key to creating an enabling business environment. The recent action plan to stabilize foreign investment reaffirms China's commitment to high-standard opening-up. We are positive that China is set to open up its domestic market further, especially in the financial sector.
RATHNINDE: Johnson Controls supports China's sustainable and smart city development through customized energy-saving and digital-enabled solutions. We welcome policies for promoting collaborations to boost new quality productive forces, advanced manufacturing, technological innovation and industrial transformation between foreign companies and the local market. As China is in a critical transition period in closing the 14th Five-Year Plan and entering the 15th Five-Year Plan, we look forward to growing our business even further. We have been continuously strengthening our industrial innovation capabilities. Through cooperation with our local partners, we have enabled the upgrade of the industrial chain and further accumulated industrial innovation resources. During our 30 years of operating in the Chinese mainland, we have seen growth and opportunity supported by policies on economic reform and opening-up of local markets.
XIE: This year's two sessions are particularly significant as it marks the final year of the 14th Five-Year Plan period. We anticipate the two sessions will emphasize policies to stabilize the economy, boost domestic consumption and address structural challenges. Accelerating major infrastructure projects will likely be a priority, which will drive demand for steel and its raw materials. We also expect further discussions on green and low carbon development and to identify potential opportunities for collaboration. Committed to unswervingly promoting high-standard opening-up, China has been continuously improving its business environment for foreign investors. We have consistently experienced the support of the Chinese government toward foreign-invested enterprises, who has truly put into practice the principle of "being responsive to requests".
XU: Airbus is particularly interested in advanced manufacturing, aerospace and green economy topics. More favorable policies to encourage domestic consumption, international trade and foreign investment, which contribute to an optimized business environment and stabilized supply chain, are very welcomed by us. China insists on high-standard opening-up to the outside world and continuously improves the business environment, promoting the world to be more closely connected, which is also an important mission of the aviation sector. This year marks the 40th anniversary of Airbus in the Chinese mainland. Our development in China is also the result of China's high-standard opening-up, so we look forward to seeing more positive signals for foreign enterprises.
Q2 "New quality productive forces "is widely seen as key to helping China achieve industrial upgrade and "high-quality development". How can your company help cultivate such forces in China?
HU: As an international financial institution operating in the Chinese mainland for 35 years, we leverage our unique position to offer international investors access to China's emerging sectors and companies, and to support innovative Chinese enterprises seeking to expand internationally. This is a crucial opportunity for UBS in serving the development of new quality productive forces. Leveraging UBS' OneBank strength, we connect private capital with Chinese companies in emerging sectors to help them secure early-stage funding. We also facilitate high-quality Chinese companies to tap into the international market through capital market activities such as IPOs. Recently, UBS has successfully supported Guming Holdings' and Mixue Group's listing in Hong Kong, the two largest primary IPOs in Hong Kong so far this year.
RATHNINDE: With 140 years of innovation experience, Johnson Controls actively responds to market needs and contributes to the advancement of new quality productive forces in various industries. We are deeply committed to R&D, investing significantly in developing cutting-edge solutions tailored to the evolving needs of key industries. Our end-to-end building solutions support growth sectors such as data centers, new energy and pharmaceuticals, empowering the facilities to meet demand for stable operations, energy saving and sustainability, which will ultimately advance new quality productive forces. We keep striving to establish and develop a local ecosystem for smart cities. Johnson Controls' partners are found throughout the entire industry chain, including Shanghai Electric, Alibaba and others. We have consistently and actively been establishing more partnership with local enterprises to drive sustainable development.
XIE: We are encouraged to see that the steel industry, a very traditional sector, is evolving into an increasingly high-end, intelligent and greener sector. In recent years, while continuously supplying high-quality iron ore products to China, we have developed innovative decarbonization solutions, such as iron ore briquettes, Tecnored, and Mega Hubs, to support the steel industry's green transition. Last year, we also donated $5.81 million to Central South University to establish a joint laboratory for low carbon and hydrogen metallurgy. This initiative is aimed at advancing fundamental theoretical research and the development of key technologies in hydrogen metallurgy and other cutting-edge metallurgical processes, thereby helping the Chinese steel sector accelerate the development of new quality productive forces.
XU: Sustainable development is the main theme of the future civil aviation industry and surely is one of the new quality productive forces in the aviation sector. Replacing traditional fossil fuels with sustainable aviation fuel is currently a relatively mature solution for carbon reduction in the aviation industry. China has huge advantages in raw material acquisition, industrial foundation, united governance and great executive ability. Airbus has been applying and promoting the use of SAF in China since 2022, and we have started to use SAF for test flights and delivery flights in Tianjin. Airbus is also ambitious to work with stakeholders to build the SAF industry in China to promote the large-scale production and use of SAF.
Q3 DeepSeek has been a buzzword and surprised the world starting this year. AI technology has been deeply integrated with various industries around the world. What opportunities do you foresee for your business from AI technology? What's your view on China's ability to sustain innovation in breakthrough technologies in the coming years?
HU: We see AI as a critical tool, not only for enhancing efficiency and risk management, but also for unleashing new industry opportunities, such as in smart manufacturing. UBS is actively embracing the transformative power of AI. Currently, we are rolling out 50,000 Microsoft 365 Copilot licenses globally, the largest Copilot deployment within the global financial services industry to date. With this, we are enhancing productivity and reshaping our business capability. DeepSeek demonstrates the ability for China to innovate in the technological field and could drive the growth of AI applications in many industries in China. We are confident in China's ability to achieve breakthrough innovations.
RATHNINDE: At Johnson Controls, we have been actively embracing digital transformation and deeply exploring digital solutions supported by advanced technologies, including artificial intelligence, 5G and the internet of things. Johnson Controls' OpenBlue digital platform, along with other cutting-edge digital technologies, enables the efficient integration and interconnectivity of buildings. Our OpenBlue digital platform uses AI to optimize building operations, improve energy efficiency and enhance occupant experience. As AI technology continues to evolve, we see significant opportunities in applying our solutions empowered by advanced AI technologies to enhance the operational efficiency of buildings, reduce energy consumption and support green transformation and growth.
XIE: Artificial intelligence is reshaping how Vale manages its processes and resources. For example, our use of AI-powered process control models in ore beneficiation plants has generated a 2 percent uplift in recovery. China is a provider of good solutions with very competitive implementation and maintenance costs. At the beginning of 2025, global hot topics and trends were brimming with remarkable Chinese elements including DeepSeek. China has demonstrated remarkable progress in innovation, particularly in fields like AI, renewable energy and biotechnology. With strong government support, substantial investment in research and development, and a growing pool of skilled professionals, China is well-positioned to sustain and even accelerate its advancements in breakthrough technologies. The country's commitment to fostering innovation and collaboration with global partners will likely drive continued success in the coming years.
XU: AI technology presents significant opportunities for businesses to enhance efficiency, improve customer experience and drive innovation. We are closely monitoring its development and are keen to see how AI could be applied to the aerospace industry and contribute to building a smart civil aviation sector, which is advocated by the Chinese authorities. China has demonstrated a strong commitment and capability in terms of technological innovation. The country's robust ecosystem — supported by government policies, a strong talent pool and a large market — well positions it to sustain innovation in technologies breakthroughs in the coming years. Airbus is more than happy to embrace China's innovative research power and extend this technological experience to the aerospace sector to drive progress of the aerospace industry.
Q4 Driving domestic consumption is one of the top priorities for China to spur economic growth this year. How do you see China's potential to drive a consumption-led impetus for the economy? How will that affect your company's profitability this year?
HU: Following the earlier expansion of trade-in programs to cover more consumer goods in January, we think the program size may be more than doubled to over 300 billion yuan ($41.4 billion) this year. The government may also propose to "properly "increase pension payout levels for retired employees and urban-rural households, and increase the subsidy standard for basic social insurance. These much-anticipated measures could gradually help underpin household confidence and unleash consumption potential over the long run.
RATHNINDE: China's increasing demand for high-quality, sustainable products and services, and its expansive middle-income group present good opportunities for economic growth. The growing emphasis on technological innovation and industrial upgrading has also spurred the emergence of innovative industries that bring new dynamics to the global market such as EVs, smart devices and efficient commercial building controls. These trends align closely with Johnson Controls' expertise and offerings. Our vertical market solutions for commercial buildings, semiconductors and electronics, modern agriculture and new energy are well-positioned to meet the evolving needs of these industries. We are excited to be positioned for growth given the potential for new demand from these verticals and ongoing cooperation with the local market.
XIE: With a large population, growing middle-income group, increasing urbanization and rising disposable incomes, China has significant potential to drive a consumption-led boost to the economy. Last year, China launched large-scale equipment upgrade and consumer goods trade-in programs, yielding fruitful results. In 2024, over 37 million consumers purchased more than 62 million eligible home appliances, and more than 6.8 million vehicles were traded in for new ones. Increasing domestic consumption, particularly of home appliances and vehicles, will boost demand for steel, subsequently raising the need for raw materials, including iron ore. Notably, over 60 percent of consumers chose new energy vehicles, further driving demand for battery materials like nickel and copper. These trends are highly favorable for Vale.
XU: Consumption will also drive the growth of the aviation industry. Income growth, more statutory holidays, changes in consumption habits such as more emphasis on experience, and expansion of route networks will stimulate the public's demand for air travel. China's civil aviation passenger traffic reached 730 million last year, a new high. China has the largest aviation population in the world. We are confident in the prospects of China's civil aviation market. Airbus predicts that the average number of flights per capita in China will increase from 0.5 in 2023 to 1.7 in 2043. As the market grows, China's fleet size will triple in the next 20 years, requiring more than 9,500 new passenger and freighter aircraft and 500 converted freighters. Airbus will support the high-quality development of Chinese airlines with highly efficient new generation aircraft.
Q5 As China continues to pursue high-quality development along a Chinese path to modernization, what opportunities do you anticipate for your business as this process gains more traction? Will you increase investment in China in the coming years? How will you further expand your footprint in China?
HU: China is a key market for UBS.Over the last 35 years, we've built one of the most established multi-entity platforms among foreign peers here in the Chinese mainland. We are well positioned to take advantage of the opportunities that emerge from China's opening-up of the financial sector, wealth creation, the focus on sustainability and new quality productive forces. We will continue to invest strategically, including increasing our stake in UBS Securities — the first foreign-invested fully licensed securities firm in China — to 100 percent. In addition, we are enhancing our partnership with the Industrial and Commercial Bank of China to explore strategic collaborations across asset management, wealth management, investment and corporate banking in the mainland and overseas markets.
RATHNINDE: The future strategy of China's high-quality development through new quality productive forces and sustainability closely aligns with Johnson Controls' goal of creating smart, healthy, and sustainable buildings and cities for the future. We are committed to achieving sustainable development through clean heating and cooling products and technological solutions. We see immense opportunities in sectors such as sustainable infrastructure, energy efficiency and smart urban development. We are optimistic about continued growth and opportunities in the future. We will focus on green innovation and enhancing R&D and manufacturing capabilities. Together with our local partners, we will promote the green and high-quality transformation of smart buildings and cities, develop new quality productive forces and work toward cutting both costs and carbon.
XIE: We see important opportunities as China continues to pursue high-quality development, which features green as the background color. We expect that China will increase steel usage in its construction and invest in renewable energy sectors, which will bring new demand for steel and iron ore. Based on our confidence in the Chinese economy and long-term commitment to the China market, we have been actively engaging in discussions with potential Chinese partners to jointly develop and help reduce or even eliminate carbon emissions across the steelmaking chain. For over half a century, Vale has been a trusted partner and reliable raw material supplier to China. We remain committed to providing high-quality mineral products and innovative low-carbon solutions, continuously supporting China's pursuit of high-quality development.
XU: China is pursuing high-quality development in its aviation industry and Airbus is determined to be part of it. We are continuously investing and expanding our industrial footprint in this country. For example, the construction of the second A320 family final assembly line in Airbus Tianjin is well underway, and the facility is expected to start operations in the beginning of 2026. Moreover, China's supply chain has shown great resilience while its talent team and product quality are also very competitive. Airbus focuses on deepening and expanding its supply chain in China with the "local for local" strategy, in collaboration with both State-owned and private enterprises. We are committed to becoming a model of cooperation in the high-tech aerospace industry between China and Europe.
