People crossing an intersection with the background of the central business district in Beijing. — AP
BEIJING: Johnson Controls is bullish about China’s economic outlook and the company sees a number of growth opportunities, including green development and advanced manufacturing, arising from the country’s pursuit of new quality productive forces, says the US-based smart building solutions provider.
Expressing strong confidence about China’s economic prospects, Anu Rathninde, president of Johnson Controls Asia-Pacific, said China’s economy will likely expand by around 5% to hit its annual growth target this year.
He said the country is transitioning from a phase of rapid growth to a stage of high-quality development.
“China’s growth rate may be slowing down a bit, but it remains a very large economy; and the retrofit part of the business will provide tremendous opportunities,” Rathninde said.
“So, I’m very optimistic about the Chinese economy and opportunities in China,” he added.
At present, China’s economy is in a stage of transformation of growth drivers toward new quality productive forces.
Although policymakers have introduced a wide range of stimulus policies to prop up the real estate sector, the country aims to prevent a free-fall in home prices and home sales, rather than making the traditional economic driver a strong pillar again, said Darius Tang, associate director of corporates at ratings agency Fitch Bohua.
Investments in China’s property sector fell 10.1% in the first six months of 2024 from a year earlier, while the sales area of new properties slumped 19% year-on-year in the first half, data from the National Bureau of Statistics showed.
While the economy is facing pressure from property woes, Rathninde said fresh growth drivers such as new energy and advanced manufacturing are booming. —China Daily/ANN
