Financial Union News on November 28th (Reporter Guo Songqiao) "There are many obvious characteristics in the Chinese industrial chain supply chain. The primary feature is its large scale, with multiple production capacities having significant leading advantages globally. Secondly, China's supply chain system is extremely comprehensive. China is the only country in the world that has all industrial categories listed in the United Nations industrial classification. Its manufacturing value-added accounts for approximately 30% of the global total." Honeywell's China President Yu Feng told Financial Union reporters at the Chain Expo.

At this Chain Expo, Honeywell brought many innovative technologies and solutions around the three major trends of future aviation, automation, and energy transformation. Financial Union reporters also interviewed Yu Feng on-site. Yu Feng introduced that in the future aviation sector, Honeywell's HGuide o360C inertial and global navigation satellite system (GNSS) combined navigation board, is the company's first industrial-grade combined navigation board developed by a local Chinese team. This product will help more Chinese customers improve their level of automation, empower the rapid development of industries such as autonomous driving and mobile mapping.

The following is the interview transcript:

Financial Union: The second Chain Expo added an advanced manufacturing chain exhibition area. Honeywell has rich technology and products in the field of advanced manufacturing and intelligent manufacturing. What kind of important role do you think Honeywell will play in China's advanced manufacturing chain?

Yu Feng: China is the only country in the world that has all industrial categories listed in the United Nations industrial classification, with its manufacturing value-added accounting for approximately 30% of the global total. In addition, the Chinese government has implemented a series of favorable policies to promote high-quality development of manufacturing through multiple measures. This has nurtured new development potential for technological innovation and application in the advanced manufacturing chain, providing broad development opportunities for Honeywell.

Honeywell has many advanced technologies, products, and solutions. However, no matter how advanced the technology is, it needs to be transformed into actual products through manufacturing, whether it is catalysts or software, which cannot be separated from the production process. Honeywell itself is an important member of the advanced manufacturing industry, and our customers are also top performers in the manufacturing industry. We are committed to providing excellent services to the Chinese manufacturing industry. We firmly believe that the core of new quality productivity lies in using breakthrough technology to achieve rapid economic development. At the same time, we are contributing to the creation of a manufacturing ecosystem, Honeywell has extensive upstream and downstream resources and is very willing to closely connect all parties to jointly promote the development of the manufacturing industry.

Automation technology can not only improve the operational efficiency of manufacturing supply chains but also enhance their adaptability and competitiveness. As a global digital high-tech enterprise, Honeywell has deep expertise and technological accumulation in the field of automation, providing industrial automation solutions for a wide range of industries such as new energy, energy storage, hydrogen energy, ships, semiconductors, discrete manufacturing, and life sciences. This can improve the quality and efficiency of manufacturing, make energy utilization more efficient and ensure production safety, helping the high-end, intelligent, and green transformation of China's manufacturing industry.

Caixin: What role does the Chinese market play in your company's global supply chain network?

Yu Feng: In recent years, the international economic environment has brought uncertainty and complexity due to factors such as climate change, technological innovation, and changes in market demand. The Chinese market plays an indispensable role in the global supply chain of enterprises, enhancing supply chain resilience, strengthening open cooperation in the supply chain, and technological innovation. This will provide strong support for the healthy and orderly development of China's industry chain supply chain.

China plays an important role in Honeywell's global operations. Currently, Honeywell has established a localized complete value chain covering various aspects such as research and development, manufacturing, and services in China. Production and operation footprints cover most regions of China, with production or R&D bases in East China, South China, North China, Central China, and Northwest China.

Against the backdrop of China vigorously promoting new quality productivity, Honeywell will further consolidate the strategic position and important role of the local supply chain, strengthen diversified cooperation with industry chain partners, jointly build a resilient, agile, and sustainable supply chain ecosystem, and actively inject new impetus into the development of new quality productivity.

Caixin: How does Honeywell view the development trends of industrial automation in the Chinese market? The new generation of information technologies such as artificial intelligence is leading the digitization and intelligent transformation and upgrading of the manufacturing industry. How do you view the application potential and prospects of new technologies such as artificial intelligence in the industrial field of China?

Yu Feng: With the development of technology, the Chinese manufacturing industry has experienced a transformation and development from hardware automation of equipment to comprehensive automation of software, hardware, and systems. The role of industrial automation in improving efficiency and ensuring quality is becoming increasingly important.

In the context of Industry 4.0, enterprises in the Chinese market are actively seeking digital transformation solutions to reduce costs and increase efficiency. Digital transformation has become a key way for manufacturing to become more high-end, intelligent, and green.

With the powerful empowerment of new generation information technologies such as big data, cloud computing, artificial intelligence, and 5G, the manufacturing industry can significantly improve operational asset management efficiency and achieve the dual goals of cost optimization and benefit improvement. At the same time, the use of digital technology can also strengthen safety production management, laying a solid foundation for the sustainable development of the manufacturing industry. Honeywell can provide a range of advanced solutions for the manufacturing industry, helping customers connect devices, products, sensors, etc., in the system to enhance efficiency in energy use, operation management, production manufacturing, and other areas.

In the future development of automation, there will be a greater emphasis on how to more accurately and better meet the diverse needs of customers and markets through the combination of relevant technologies and management, thus significantly improving the economic benefits of enterprises. Honeywell has rich and excellent automation technology, which will help Chinese enterprises achieve intelligent transformation in technology, management, and operation, and drive the transformation of the entire industry from big to strong.

As for artificial intelligence (AI) technology, Honeywell attaches great importance to it. AI has been integrated into various aspects such as human resources, research and development, and operations. At present, Honeywell is using AI technology to elevate the auxiliary decision-making capabilities of control systems to new heights. Honeywell recently launched a series of innovative solutions based on artificial intelligence, aimed at increasing the intelligence level of employee operations, improving system operational efficiency, and accelerating the autonomous operation of factories. For example, Honeywell's Experion Operation Advisor incorporates explainable artificial intelligence into industrial processes to help operators identify production issues and gradually provide guidance. At the same time, Honeywell is actively expanding deep collaborations with domestic and foreign partners in AI + industrial scenarios, providing advanced automation and sustainable development solutions for the energy, chemical, life sciences, and other manufacturing-related fields. For instance, Honeywell and Qualcomm, a subsidiary of Qualcomm Technologies, announced further deepening cooperation to jointly develop innovative artificial intelligence (AI) solutions for the energy industry.

Honeywell has advanced digital technology to continuously improve the automation level of facilities and factories, comprehensively enhance production efficiency, lean production management, and precise carbon emission monitoring. For example, in the petrochemical industry, Honeywell has helped Shenghong Petrochemical Industry Group build an intelligent factory for propylene dehydrogenation (PDH), realizing intelligent production and management throughout the life cycle from process design, engineering and construction to production operation management, using mature technologies for both automatic control and intelligent operation management to help enterprises ensure safe production, reduce costs, increase efficiency, and enhance decision-making efficiency.

Honeywell's AI technology is constantly iterating and optimizing to help solve complex enterprise management and operational challenges, empowering enterprises to achieve significant improvements in benefits.

Cailianshe: Honeywell has been committed to promoting energy transformation and green carbon reduction in recent years. In your opinion, what opportunities do you think the Chinese market can provide in this regard?

Yu Feng: First of all, under the promotion of the 'dual carbon' target by the Chinese government, efforts are being made to actively promote energy green and low-carbon transformation, with a series of policies and plans being introduced. These provide a good policy environment and market demand for Honeywell's energy transformation and green carbon reduction in the Chinese market. The demand for renewable energy and low-carbon technology in the Chinese market continues to grow. Honeywell has leading technologies and solutions in areas such as carbon capture and storage, green hydrogen, sustainable aviation fuel (SAF), UpCycle plastic recycling, and low-carbon smart buildings, helping Chinese enterprises achieve low-carbon transformation.

Secondly, market and customer unique demands are driving enterprise innovation. In response to the growing demand in the new energy auto market, Honeywell continues to increase research and development investment in key components for autos and product and technology in the manufacturing process, accelerating the development of the new energy auto industry. Additionally, energy storage technology development is central to the new energy revolution, with significant implications for achieving efficient energy use and emission reduction goals. As one of the main sources of urban carbon footprint, energy conservation and emission reduction in the construction industry are also key drivers for sustainable development. Honeywell has mature technologies and solutions in these areas, helping customers achieve low-carbon upgrades and jointly create a zero-carbon future.