Cao Yang
Multinational energy company Baker Hughes is eyeing growing opportunities from China's energy transition, expressing strong optimism about its development in the country and underscoring the nation's critical role in supporting its global supply chain.
"China is a key part of our global supply chain and an important pillar in maintaining our global competitiveness," said Cao Yang, global vice-president of Baker Hughes and president of Baker Hughes China. "We look forward to further engaging in China's energy transformation."
Over the past few years, Baker Hughes has made significant strides in its operations in China, Cao said in an interview with China Daily.
"On one hand, sales have remained steady in China, and procurement volumes in China have nearly doubled compared to four years ago," he said. "On the other, the company has made continuous improvements in factory management, execution and delivery capabilities and achieved enhanced operational efficiency, which helps support both domestic and international business."
Cao highlighted the resilience and competitiveness of China's manufacturing sector as a core factor driving these advancements. "China's manufacturing industry boasts significant cost advantages, a massive domestic market demand, and a complete industrial and supply chain, which will strengthen and continue driving the 'Made in China' brand forward," he said.
The company's focus is not only on developing and upgrading its core oil and gas businesses but also on exploring opportunities in the blossoming new energy sector.
"In the new energy sector, we're seeing strong demand for electrolysis cell testing and electric vehicle battery testing, and we are actively exploring those areas," Cao said.
"China is among the top rankings in terms of the new energy sector, and we are accelerating the development and investments in areas like hydrogen energy, geothermal power and white hydrogen."
With China's strong commitment to achieving its dual carbon goals of peaking carbon dioxide emissions before 2030 and achieving carbon neutrality before 2060, Cao said the company has seen growing opportunities arising from advancements in digital technologies and clean energy. "China's manufacturing sector is increasingly transitioning toward high-end, intelligent and green development, driven by digital innovations," he added.
Baker Hughes is actively leveraging digital technologies to enhance the traditional oil and gas business. For instance, the company said its Leucipa automated field production solution, which uses real-time data analysis to predict equipment failures, optimize production schedules and increase efficiency, will help oil and gas operators manage production as well as improve safety and economic performance. In actual cases, the company said the solution has helped increase production by around 25 percent.
Cao acknowledged that balancing the energy transition is a complex global challenge. "The biggest challenge today is balancing energy security, affordability and sustainability," he noted, pointing to rising geopolitical risks that have put further pressure on energy markets.
"The global situation presents both challenges and opportunities, and companies need to adapt to this 'two sides of the coin' reality."
Baker Hughes also sees continued growth potential in China's energy market, driven by the country's increasing demand for low-emission sources of energy. "China's energy demand is still growing, and there is a strong need for cleaner energy sources," Cao said.
Baker Hughes, which has been operating in China for over 40 years, emphasized its long-term commitment to the market. "Our commitment is consistent, and we remain confident about China's growth in the future," Cao said.
Looking ahead, he said the company will strive to remain at the forefront of both traditional and new energy sectors in China.
"For China's new energy sector, 2025 will be a year of steady growth coupled with strategic adjustment," Deloitte said in a new report. "Proactive fiscal policies and a more accommodating credit environment are set to provide tailwinds for China's economy, with energy policies shifting focus from ramping up clean energy production to stimulating demand."
