From left to right: Xu Xin, chairman of GE Energy Investment (China) Co Ltd; Tetsuro Homma, executive vice-president of Panasonic; Malu Nachreiner, head of the Region Asia for the Crop Science Division of Bayer; Zhuang Ye, VP of Baker Hughes North Asia GeoZone. [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?
XU: For multinational corporations, the two sessions serve as a crucial window into understanding China's political landscape, economic dynamics and social development. GE Vernova looks forward to seeing more signals of high-standard opening-up, which will drive further market openings and continuous optimization of the business environment in China. We expect to see policies that encourage greater participation of multinational corporations in China's ambitious dual-carbon goals. GE Vernova is rooted in China, actively empowers China's energy transition and is involved in China's energy development. China is an important market for GE Vernova and an integral part of the company's business. China has been and will continue to be one of the most important markets for GE Vernova.
HOMMA: I look forward to seeing more specific policy measures on deepening reforms and increasing openness. I have also noticed that China recently released the "2025 Action Plan for Stabilizing Foreign Investment", which includes the requirement to fully lift restrictions on foreign investment in the manufacturing sector. For areas not on the negative list for foreign investment, management will be strictly enforced to ensure equal treatment of domestic and foreign investments. It shows China's determination to further improve the business environment. China's reinstatement of visa-free entry for Japanese citizens will further promote bilateral economic relations. In addition, the economic measures being implemented by the Chinese government, such as subsidies for exchanging old items for new ones, are showing results. I hope that additional economic measures will be steadily implemented in the future.
NACHREINER: One factor that gives us significant momentum in China is the recent announcements from the government regarding its openness to foreign investment. We have heard and seen how eager the Chinese government is to welcome foreign companies, which creates a positive environment for collaboration and growth. This is what makes us very excited. We have seen this trend of opening-up for foreigners happening in every single industry. While we know there is still a way to go especially in agriculture, we are eager to explore the opportunities that we can partner and bring innovation in the biotech space. Bayer is an innovation-driven company and a global leader in biotechnology, and we firmly believe we can introduce the innovation and products to China that will ultimately benefit Chinese farmers and agriculture in the country.
ZHUANG: Baker Hughes has been rooted in the Chinese mainland market for more than 40 years and has always been optimistic about the long-term positive fundamentals of China's economic development. We will continue to cultivate the Chinese market and hope to understand the development of China's economy through the two sessions, including the Chinese government's views on economic growth, economic growth targets and content related to high-quality development. To further strengthen R&D cooperation with the national oil corporations, Baker Hughes expands smart manufacturing and improves cross-sector data-sharing frameworks to ensure that foreign companies fully contribute to innovation and sustainable development goals.
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?
XU: New quality productive forces are essential for China's industrial upgrade and high-quality development, and GE Vernova is well-positioned to contribute to this goal in several key ways. China's robust push for renewable energy has revealed vast potential to GE Vernova. For example, GE Vernova is exploring the application of new fuels like hydrogen and enhancing our turbines' hydrogen combustion capabilities. This innovation not only supports China's dual-carbon goals, but also addresses national energy security by reducing reliance on imported natural gas. Given China's large-scale renewable energy growth, GE Vernova believes that China has the potential to lead in the large-scale application of green hydrogen, achieving "leapfrog development". We aim to constantly improve productivity while driving low-carbon transition with technological innovation.
HOMMA: China's development of new quality productive forces is beneficial to long-term economic stability, with technological innovation being the most crucial element. China's leading technologies and concepts in areas such as IoT, AI, electric vehicles and solar cells, as well as other sustainable energy technologies, will all contribute to the development of new quality productive forces. Panasonic has closely kept pace with China's development. In recent years, Chinese teams have been responsible for the development, manufacturing and sales of home appliances and residential equipment in China. As the country continues to promote local technological innovation, Panasonic is contributing to the advancement of new quality productive forces in China. We hope that the bases of foreign-invested enterprises in China can also be recognized as an integral part of the country's supply chain.
NACHREINER: My understanding of new quality productive forces in agriculture is to drive agriculture by scientific and technological innovation. When it comes to innovation, I would like to highlight two key projects. The first is the Drone Plus program, a digital tool designed to help farmers make better decisions regarding drone applications. This initiative involves not only farmers but also partners, providing us with an opportunity to engage more closely with farmers and assist them in their operations. The second project is the Better Life Farming initiative, which is specifically tailored to smallholder farmers in China. We understand the significance of smallholder farming for the country and last year we launched 50 Better Life Farming centers. We aim to continue expanding this initiative by providing not only solutions and products, but also facilitating knowledge transfer to help farmers improve their practices and produce more sustainably.
ZHUANG: Under the background of carbon neutrality, the global energy transformation has entered a stage of accelerated advancement. Its core is to promote the development of renewable energy and ultimately achieve a transition from a fossil energy system to a green, sustainable and renewable energy system. Baker Hughes' work unlocks the ability for technology, digital solutions and sustainable energy to power China's industrial upgrading while capturing and cutting emissions, and maximizing efficiency, productivity and reliability. It provides practical solutions for collaborating with Chinese partners on cutting-edge technologies such as geothermal drilling and training local talent in AI and green tech through partnerships with Chinese universities and vocational institutes.
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?
XU: As demand for AI computing power surges, so does the electricity consumption of data centers. This trend creates a unique opportunity for the gas turbine industry, which can provide reliable and efficient power needed to support these data centers. Gas power, with its flexibility, low carbon footprint and stability, is well-positioned to support the opportunities presented by AI, especially considering that "the end of computing power is electricity". China has shown strong potential for sustained innovation in breakthrough technologies. GE Vernova looks forward to leveraging global wisdom and experience while partnering with local stakeholders to drive low-carbon operations, invest in innovation and foster collaboration across the entire value chain of the energy industry.
HOMMA: It is evident that China is actively promoting the development of the digital economy and has launched the "AI Plus" action plan. This strategic initiative suggests that traditional industries are on the brink of a profound transformation driven by digital advancements and the application of artificial intelligence. The transition from traditional factory models to smart factories, and from basic processing and manufacturing to an era of digital and intelligent integration, is accelerating rapidly. Generative AI offers us more business opportunities. Panasonic's largest overseas software R&D base in Dalian, Liaoning province is continuously strengthening its development in AI, focusing on applying AI to products. Additionally, Panasonic employees are also embracing the use of AI in their work. We are now offering a trial version of the DeepSeek AI service to employees on the Chinese mainland to help improve their job performance.
NACHREINER: China has truly established itself as a key player in the realm of innovation as the recent progress of AI technology shows. We have witnessed how various industries in China are actively occupying the space of R&D by introducing innovations across different segments. This dynamic environment is something that greatly attracts us. Bayer believes that as a country becomes increasingly recognized as a power in the R&D arena, we can engage in meaningful partnerships. By combining our R&D and innovation efforts, we ultimately benefit farmers and consumers in China, creating a win-win situation for everyone involved. We definitely see China as a valuable R&D partner — a country and a hub for innovation that can provide customers and consumers with greater opportunities, alternatives and new ways of doing things.
ZHUANG: China's innovation ecosystem — supported by world-class talent, policy agility and massive data resources — positions it to lead in AI-driven energy solutions. Baker Hughes is an energy technology company that provides solutions for energy and industrial customers worldwide. Over the years, it has stood out from many competitors with its high-end technological advantages. Today we are leveraging decades of assets experience, a unique combination of physical-based models, advanced analytics, AI and machine learning to deliver actionable insights for critical assets, processes and systems. At the same time, we plan to work with Chinese tech firms and startups to co-develop scalable tools, ensuring China remains a global innovation powerhouse.
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?
XU: GE Vernova is optimistic about China's potential to drive a consumption-led impetus for the economy. China's commitment to energy transition and the expansion of its renewable energy infrastructure create significant opportunities for companies like ours. Additionally, the growth in emerging sectors such as data centers and AI, which require reliable and efficient power solutions, aligns well with our capabilities. GE Vernova built a strong foundation in 2024 with solid growth, significant margin expansion and cash generation. We also hope that the government will continue to introduce policies for energy production and consumption enterprises, which can allow energy companies to benefit and improve their profitability.
HOMMA: China has introduced a series of measures to stimulate domestic demand and promote consumption. For example, the trade-in policy is not just to boost consumption, but to enhance the value of products in the contexts where consumers use them. In other words, the trade-in policy may guide consumers toward energy-saving and smart products, providing new value to their lives. I believe that the trade-in policy can create added value for our products, deeply explore customer needs, and presents significant opportunities for us. The implementation of national subsidy policies has significantly boosted Panasonic's home appliance sales in China. Panasonic's refrigerator sales in China increased more than 60 percent from September to December 2024 compared with the same period of 2023, while washing machine sales increased by 80 percent year-on-year.
NACHREINER: China is the second-largest market for Bayer Crop Science in Asia. The country is a market with significant growth potential that we believe will remain relevant in the long term. This is our assessment of China, especially given the critical role agriculture plays in the Chinese economy. We see numerous opportunities for the industry and for players like us to contribute to the country's growth agenda. Bayer Crop Science believes that by establishing our presence here, we can tap into the Chinese domestic market and support farmers and the agricultural industry in achieving greater success.
ZHUANG: Final consumption expenditure contributed 44.5 percent to economic growth in 2024, driving GDP growth by 2.2 percentage points, demonstrating that consumption has become a key link and important engine for unblocking domestic circulation, as well as a fundamental force for driving economic growth. Global oil demand is expected to continue to maintain a relatively strong growth trend in 2025, and the recovery of aviation and road transportation will continue to support oil use. Consumption is expected to become a highlight of China's economic growth in 2025. China's focus on quality consumption — such as demand for cleaner energy — directly aligns with our strengths. This, among other trends, will drive demand for our integrated services and improve profitability.
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?
XU: China has always been an important market for GE Vernova and we are looking forward to continuing our commitment to the country. Currently, gas power is one of the key areas we are focusing on in the Chinese market. Gas power serves as a vital support for the construction of China's new power systems. The development of renewable energy in China has created significant opportunities for gas power. Hydrogen co-firing in gas turbines is not only a catalyst for achieving China's dual carbon goals, but also a viable pathway for national energy security. We believe that China has the potential to lead in the large-scale application of green hydrogen, achieving "leapfrog development". We will continue to invest in the Chinese market, assist in constructing a new power system and move together toward a low-carbon future.
HOMMA: The third phase of the factory of Prime Planet Energy Dalian Co Ltd, a joint venture between Panasonic and Toyota, has been completed and began mass production at the end of 2023. This factory primarily produces prismatic batteries for hybrid electric vehicles and plugin hybrid electric vehicles. Subsequently, Panasonic aims to expand its business to cover pure electric vehicles. The Panasonic electronic materials factory in Suzhou, which focuses on the semiconductor field, held its groundbreaking ceremony in October. The capacitors needed for AI chips produced by Panasonic in Guangzhou are currently in short supply. This year, Panasonic will also expand its electronic materials factory in Fengxian district, Shanghai, with plans to start production in 2027.
NACHREINER: China has huge market potential and investing in China means being able to capitalize on this huge market to fuel the company's business growth. One key driver for us in the medium to long term is our seed industry. We believe this represents the biggest opportunity for Bayer in China. Besides, our investment in China goes beyond commercial. Regarding our product supply center, our plant in Hangzhou, Zhejiang province, inaugurated in January 2025, is brand new and represents an investment of 40 million euros ($43.3 million). We are very excited and proud of this product supply facility as it will support our operations not only in China, but also across Asia. Second, in our corn seed joint venture in China, China Seed International, we are investing around 12 percent of our annual turnover each year. This consistent investment in R&D, new varieties and products tailored to the Chinese market amounted to approximately 100 million euros by 2023.
ZHUANG: The long-term stability of China's economic growth will help the world economy recover, and China's high-quality development will also promote global common development and prosperity. We expect the "China engine" to continue to show strong momentum, especially in terms of openness, innovation and green development, and create more opportunities for common development for the world. China remains a cornerstone of Baker Hughes' global strategy and we are committed to expanding our presence in the country. Baker Hughes will continue to invest in energy transformation, digital integration, R&D and maintenance bases. Baker Hughes is proud to support China's dual goals of energy security and carbon neutrality. By blending global expertise with local innovation, we aim to be a trusted partner in powering sustainable progress at scale.
