TIANJIN, June 23 (Xinhua) – Commercial compressors came out of an automated production line, with several workers operating the intelligent system and checking quality at Danfoss’ intelligent manufacturing plant in the northern Chinese municipality of Tianjin.
Danfoss, a leading Danish heating technology company, made its first investment in China in 1996 with the establishment of Danfoss (Tianjin) Co., Ltd. After more than two decades, the subsidiary has become a modern factory integrating research and development (R&D), testing new products and intelligent production.
Dai Jian, head of Danfoss Global Services, China and general manager of Danfoss (Tianjin) Co., Ltd., said that with more than 10 manufacturing sites across the country, Danfoss always sees China as its “second home market.” China has already become the second largest regional market and the largest purchasing market.
“We transferred a compressor production line from the United States to Tianjin last year. This year, eight to 10 production lines from Europe are expected to be transferred to Tianjin, and preparatory work has already begun,” Dai said. All new production lines will bring in 800 million yuan (about $ 119.3 million) a year to Danfoss Tianjin in the future, Dai said.
Guided by China’s targets for peak carbon emissions by 2030 and carbon neutrality by 2060, Danfoss has made energy saving and emissions reduction a key area of development in China and has continued to increase investment.
In 2021, Danfoss announced that it would invest 140 million yuan to build a global R&D and refrigeration testing center in Tianjin. “This is our largest R&D center at the moment and we expect to put it into operation by the end of this year to launch the newly developed products on the market,” Dai said.
In line with China’s development goals, enjoying a number of favorable policies and a promising business environment, Dai said these are the main reasons for the company to take root, develop and continue to increase investment in China.
In addition to Danfoss, many foreign companies have also turned their attention to China’s future development and expanded their business in the country.
Foreign giants such as Fast Retailing, Siemens Healthineers and L’Oreal are opening new stores, increasing investment and launching new projects, demonstrating their confidence in China as well as their determination to expand their presence.
In the eastern city of Suzhou, Mando of the Republic of Korea plans to invest more than one billion yuan in new projects in 2022. In Zhejiang Province, Nidec Elesys (Zhejiang) plans to invest an additional 150 million yuan this year to expand the production capacity of inverters for cars with new energy.
According to the report on the business climate study in China for 2022, published by the American Chamber of Commerce in China (AmCham China), two thirds of the surveyed companies plan to increase their investments in China this year.
With consumption growing in recent years, China’s vast market, with more than 400 million average incomes, is attractive enough for global investment, said Kong Yi, a professor at Tianjin University of Finance and Economics.
In recent years, China has continued to reduce the negative list of foreign investments and enact laws and regulations, including the Foreign Investment Act, to protect the legitimate rights and interests of foreign investors.
Even during the COVID-19 pandemic, China made great efforts to stabilize industrial and supply chains and ensure steady progress on major projects, which further strengthened the investment confidence of foreign companies in China.
According to the Ministry of Commerce (MOC), foreign direct investment (FDI) in mainland China, in real use, increased by 17.3 percent year on year to 564.2 billion yuan in the first five months of the year. In US dollars, inflows rose 22.6% year-on-year to $ 87.77 billion.
During the period, investments from the Republic of Korea, the United States and Germany increased by 52.8%, 27.1% and 21.4%, respectively.
Shu Juetting, a spokesman for the MOC, said in May that multinational companies are actively expanding investment in China, which shows foreign investors’ confidence in the prospects of the Chinese economy and reflects China’s huge market, full industrial system and infrastructure, and rich Human Resources.
Shu also noted that China will continue to deepen its opening and optimize services for foreign investors to create more opportunities for foreign-funded enterprises.