China's innovation drive reshaping global industry, says Schneider Electric executive

HANNOVER, Germany - China's rapid advances in intelligent manufacturing, industrial AI, and green transformation are not only accelerating its own development but also reshaping global supply chains and industrial ecosystems, Ali Haj Fraj, senior vice-president of Schneider Electric, told Xinhua in an exclusive interview at Hannover Messe 2025.

"China is not just a manufacturing powerhouse -- it is an innovation hub that is driving the next era of industrial automation and sustainability," Fraj said, emphasizing the country's growing influence on global industrial trends.

Schneider Electric, a global leader in energy management and industrial automation, has steadily expanded its presence in China since entering the market in 1987. From a modest beginning, the company now operates more than 30 factories and distribution centers, five research and development facilities, and an AI innovation lab across the country, employing over 18,000 people.

Fraj said China's policy focus on high-quality development, digitalization, and green transition is closely aligned with the company's global strategy. "We are investing heavily in software-defined automation, AI-powered industrial solutions, and sustainable energy management to help Chinese enterprises stay competitive globally," he said.

With the Chinese government prioritizing the development of "new quality productive forces" to drive growth, Fraj sees strong momentum across both traditional industries and emerging sectors such as new energy vehicles, semiconductors, and robotics. "The scale and speed at which China is adopting digital and green technologies are unmatched," he added.

Despite global uncertainties and shifting supply chains, Schneider Electric has reinforced China's role in its global operations. Under its "China Hub" strategy, the company integrates local research and development, manufacturing, and supply chain capabilities to meet both domestic and international demand.

"With around 1,600 local supplier partners and 30 manufacturing and distribution centers, China is not only a key market but a pillar of our global supply chain resilience," Fraj noted. "We are leveraging China's innovation strengths to develop solutions that can be deployed worldwide."

One such example is the company's smart factory in Shanghai's Putuo District, which has used AI and digital tools to cut make-to-order time by 67 percent and boost production efficiency by 82 percent. "This is what China's new quality productive forces look like in action - efficiency, sustainability, and innovation combined," Fraj said.

As China pushes forward with its dual carbon goals -- peaking carbon emissions before 2030 and achieving carbon neutrality by 2060 -- Schneider Electric is deepening its involvement in helping industries decarbonize. Its integrated solutions bring together automation, energy management, and AI-driven analytics to enhance both sustainability and performance.

"We are proving that industrial competitiveness and sustainability can go hand in hand," Fraj said, citing the Jiading Renewable Energy project in Shanghai. Schneider Electric's intelligent waste-to-energy solution there has cut operational alarms by 90 percent while enabling automated control of core systems.

China is also playing a central role in the company's global industrial AI strategy. "China's leadership in AI research, industrial applications, and policy support makes it a strategic market for us," Fraj said.

Despite external challenges, China has set a five percent GDP growth target for 2025, reinforcing Schneider Electric's long-term confidence. "China remains one of the most dynamic economies, with a strong industrial base and an unwavering commitment to innovation," Fraj said.

He added that Schneider Electric is among the many multinationals scaling up investments in China amid the country's push for greater openness and improved business conditions. "China's focus on high-level opening-up and attracting foreign investment creates a favorable environment for long-term collaboration."

Looking ahead, Fraj said Schneider Electric will continue to deepen partnerships with Chinese enterprises to accelerate industrial digitalization and sustainability. "China is not only shaping the future of its own industries but also influencing global industrial transformation," he said. "We are fully committed to being part of this journey."