Schneider Electric sees AI, green tech future

China's rapid strides in industrial artificial intelligence, green transformation and high-end manufacturing will drive Schneider Electric to further invest in the world's second-largest economy, with the potential to reshape industrial ecosystems globally, according to a senior executive at the French industrial conglomerate.

As a key driver of global growth, China offers a vast market, strong industrial base and rich innovation resources, said Ali Haj Fraj, senior vice-president of Schneider Electric.

In recent years, with China's cultivation of new quality productive forces, technological innovation is driving major industries to accelerate the growth of digital and green productivities. This has brought broader development space for Schneider Electric within the country, said Fraj.

First introduced in 2023, new quality productive forces refer to advanced productivity freed from traditional economic growth modes and productivity development paths. The concept features high-tech, high efficiency and high quality characteristics, and is in line with the new development philosophy.

The Government Work Report this year highlighted the development of these forces tailored to local conditions, focusing on building a modern industrial system. It aims to simultaneously achieve carbon reduction, pollution control, ecological improvement and economic growth, therefore accelerating comprehensive green transformation.

"New quality productive forces can energize the industrial automation business, boosting demand across both traditional and emerging sectors such as new energy vehicles, semiconductors and robotics," he said.

Given its enormous market size, thriving emerging industries and well-established industrial supply chains, China has emerged as Schneider Electric's second-largest global market and one of its four principal research and development hubs.

Since 2019, the French group's compound annual growth rate of R&D investment in China has exceeded 18 percent.

As the globalization of Chinese companies is creating fresh growth opportunities for the market, Fraj said that Schneider Electric is keen to leverage its technology, service experience and global support network to facilitate its entry into more overseas markets.

This trend is underscored by recent economic data. China's nonfinancial outbound direct investment rose 9.1 percent year-on-year to $22.97 billion in the first two months of 2025, said the Ministry of Commerce.

Acknowledging the industrial sector's current challenges, including high energy costs and escalating supply chain risks, Sun Fuquan, a researcher at the Beijing-based Chinese Academy of Science and Technology for Development, emphasized the importance of strategic planning and investment for Chinese companies.

Sun said that such measures are essential for ensuring long-term viability and a competitive edge.

Echoing that sentiment, Fraj from Schneider Electric said innovative technologies are crucial in tackling those challenges, and digital technologies such as AI, 5G and digital twins have emerged as the most effective tools for advancing the future development of industries and societies.

Showing its latest technologies in these fields, Schneider Electric presented a circular manufacturing park for dairy products at Hannover Messe 2025, which was held in Germany from March 31 to April 4. The park featured key scenarios across the entire industry chain, including farms, factories, water treatment, electricity, data centers, retail and recycling.

The exhibit demonstrated how digital technologies can be used to enhance efficiency throughout the production and project lifecycle, promote green and sustainable development across the entire value chain, build an interconnected ecosystem and foster collaborative growth throughout the industry.