(By Liu Yuanyuan, Editor: Zhou Yuanfang)

In 1935, Honeywell established its first sales office in Shanghai, sowing the seeds of a nearly century-long relationship with the Chinese market. After 90 years, Honeywell has deeply integrated its development trajectory with China's economic trends.

"Currently, all of Honeywell's business groups have been established in China, with Shanghai as the headquarters, building a complete local value chain covering innovation, R&D, manufacturing, procurement, sales, and services," Chen Yan, Vice President of Honeywell's Smart Building Technologies Group and General Manager of Greater China, summarized the depth of the company's presence in the Chinese market to Observers.

Honeywell Greater China President Yu Feng further elaborated on the company's strategic direction for development in China: "Honeywell still adheres to the 'Eastern Services Eastern' strategy, continuing the idea of 'rooting in China and serving China': on one hand, it will continue to deepen cooperation with Chinese enterprises, and on the other hand, it will continuously increase investment in local R&D and implementation of technological innovations. In addition, it will continue to link upstream and downstream resources, allowing more Chinese innovations to reach the global market, and also enabling global experience to better serve China's development."

Eastern Services Eastern

According to the data, Honeywell is a multinational technology company established in 1885, headquartered in Charlotte, North Carolina, USA, with businesses spanning four areas: aerospace, smart building technologies, energy and sustainable technologies, and smart industrial technologies.

Honeywell's entry into the Chinese market can be traced back to 1935. At that time, the company set up its first sales office in Shanghai, beginning its "entry into China" chapter.

Then in 1972, when US President Nixon visited China, invited by the Chinese government, Honeywell was among the top ten companies recommended to promote China's modernization. The UOP subsidiary of Honeywell became the only enterprise selected in the oil refining and petrochemical field. In 1988, Honeywell became one of the first multinational companies to establish a representative office in Beijing.

In 1989, Honeywell UOP established a joint venture with Shanghai Huayi Group - Shanghai UOP Molecular Sieve Co., Ltd., marking its first step in local joint ventures. Subsequently, the company successively established joint ventures with Sinopec, Zhonghe Xiyi, and AVIC Xi'an Flight Control, among other local enterprises.

Entering the 21st century, Honeywell's layout in China accelerated. In 2003, all of Honeywell's business groups were fully established in China, promoting the "Eastern Services Eastern" strategy. The following year, Honeywell invested in establishing the China R&D Center in Zhangjiang, Shanghai.

Yu Feng told Observers that the core concept of Honeywell's "Eastern Services Eastern" strategy differs from the traditional meaning of "localization." It is not about introducing foreign products and technologies into the domestic market for local adaptation, but rather having Chinese teams take the lead, based on the needs and pain points of the Chinese market, completing the entire design, procurement, and production process in China, with all products strictly complying with relevant standards and regulations of the Chinese market.

Honeywell Greater China President Yu Feng

Take the recently concluded 8th China International Import Expo as an example. During the event, Honeywell introduced eight new products precisely responding to the needs of the Chinese market, covering five fields: semiconductors, industrial combustion, industrial automation, smart buildings, and battery safety.

In the smart building field, Honeywell also reached multiple collaborations with Lhasa Regent Hotel, Zhongji United, Shanghai Zhangjiang Group, local colleges, and property management companies. Among these, for the geographical and climatic characteristics of high altitude where Lhasa Regent Resort Hotel is located, Honeywell will tailor a low-carbon smart upgrade plan.

"These collaborations fully reflect the strategic concept of Honeywell's 'Eastern Services Eastern.' Through localized R&D innovation, we work with partners to build smarter, safer, and more sustainable building environments," said Chen Yan.

This strategy has achieved significant results in practice. Today, Honeywell has established a comprehensive localized innovation system in China. For example, the Smart Building Technologies Group has R&D centers in Beijing, Shanghai, Xi'an, and Tianjin, and production bases in Xi'an, Tianjin, and Guangzhou.

Chen Yan revealed that a large proportion of the products sold in China are locally developed, innovated, and produced, accounting for more than half of current sales.

Local R&D Backing Global

More notably, many innovative achievements originating from China are now benefiting the global market. It is no longer just "In China for China," but evolving into "In China for the World."

Yu Feng gave an example to Observers: "For instance, our barcode scanner and printer business, the Suzhou base in China is a key part of the global R&D force. We fully leverage the engineer advantage in China, as well as the complete and resilient supply chain, achieving R&D and production in China to serve the Chinese market."

In the field of new energy vehicles, there are similar cases. Yu Feng stated that although Honeywell is an American company, its local team, R&D, and production systems have long been deeply rooted in China. "Today, over 60% of new energy vehicles are produced in China. Our service to the Chinese market is actually positioning us for the global competition."

He added that as Chinese new energy vehicle companies accelerate their "overseas expansion," Honeywell is also following suit to expand its overseas business; meanwhile, products developed in China, with excellent performance and cost-effectiveness, have been recommended to global renowned car brands, integrating into the global supply chain system.

Additionally, Yu Feng and his team are actively promoting two-way communication work. "Every year, we send employees to various parts of the world to introduce the development situation and innovation strength of China. At the same time, we also invite our overseas colleagues to China. On one hand, they can personally experience China's strong industrial capabilities and innovation vitality, and on the other hand, they can also appreciate China's five thousand years of civilization."

Chen Yan also mentioned that the trend of "China to the world" is prominent in the smart building field. Many locally developed software and hardware products have been pushed to overseas markets, including Southeast Asia, the Middle East, and Latin America.

"For example, the Honeywell Smart Building Operations Management Platform (BPS) we launched in the past has been well applied in the Middle East. This software platform was developed by the Chinese team at Honeywell for the maintenance and energy management needs of the Chinese building market, helping achieve energy saving and emission reduction and sustainable development of buildings. It has significantly improved operational efficiency and energy savings in the renovation project of Xi'an Westin Hotel," said Chen Yan.

Looking ahead, Chen Yan predicts that the smart building field in China will evolve around three trends: green and low carbon, digitalization, and maximizing the value throughout the entire life cycle. "Honeywell will continue to develop products and technologies that meet the needs of Chinese customers, further reinforcing its commitment to long-term development in China. It will make full use of global experience and localized innovation, working with Chinese partners to drive industrial upgrading and help related industries achieve high-quality, sustainable development that is low carbon, efficient, safe, and healthy."

Yu Feng also emphasized that Honeywell will continue to adhere to the 'Eastern Services Eastern' strategy, maintaining the approach of 'rooting in China and serving China.'

Original article: https://www.toutiao.com/article/7571777997414400527/

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