As China accelerates its transition to green and technology-driven growth, China will continue to be a strategic cornerstone for ABB Group, evolving its role from a key market to a major hub for advanced manufacturing and innovation, company executives said. ABB Group CEO Morten Verode said that ABB believes that its strategic focus is highly aligned with China's development goals under the 15th Five-Year Plan (2026-2030), especially in the fields of electrification, automation, artificial intelligence and intelligent manufacturing.
"China's long-term development plan is highly aligned with ABB's business direction. Electrification and automation are global trends, and the country is at the forefront of these transformations," Verode said in an interview on the sidelines of the China Development Forum 2026 in Beijing. He said that as China accelerates its transition to green development, ABB will continue to increase investment, deepen cooperation with local partners, and use its own technical capabilities to support various industries to improve efficiency and sustainability.
According to the outline of the 15th Five-Year Plan for National Economic and Social Development, China will promote green and low-carbon growth, promote the upgrading of traditional industries to the middle and high end of the value chain, cultivate new industries and formulate forward-looking plans for future industries. Virode pointed out that electrification will be at the heart of decarbonization, driven by the expansion of renewable energy and more efficient use of electricity through automation and digital technologies. He stressed that a reliable supply of electricity is essential for advanced manufacturing.
In terms of industrial opportunities, ABB believes that there is great potential in industries undergoing structural transformation, such as the steel industry, whose production process is shifting from coal-based methods to the use of electric arc furnaces and green hydrogen. For example, ABB has provided Qingdao Special Steel Co., Ltd. in Shandong Province with an intelligent manufacturing solution that integrates digital technology, data analysis and safety systems, enabling real-time data monitoring and centralized control, while artificial intelligence helps predict failures, optimize energy use and reduce costs.
The project is part of ABB's broader push in China. China is ABB's second largest market in the world, employing more than 14000 people, and increasingly developing solutions for both domestic and international markets. "We see China not only as a strong market for our products, but also as a center of innovation where we develop new solutions that can be applied to domestic and international markets," added Verode. He plans to return to China in May this year with the company's board members to inspect key operations and interact with customers and policy makers.
Currently, more than 85% of ABB's products sold in China are made locally, thanks to a strong domestic supply chain and a research and development team of more than 2000 engineers. About 1/4 of its China-based production is exported overseas, including Southeast Asia, Europe and South America. Chen Jianwei, a researcher at the University of International Business and Economics in Beijing, said that China's move to promote reform and development through high-level opening-up will release new impetus for multinational companies and trading partners. According to statistics from the Ministry of Commerce, in the first two months of 2026, investment in China from Canada, Switzerland and France increased by 210, 41.3 and 3% respectively.