Multinational consumer plays keen on China

A1 The country's efforts to open up to the world is what we have felt most keenly as we participated in China's economic takeoff during the past decades.

Honeywell is one of the first US companies to enter the Chinese market and has been in China for more than 40 years. Nowadays, China is Honeywell's largest single-country market outside the US. This amazing transformation would not have happened without China's opening up to the world and inviting multinational companies to come and participate in the economic development of the country.

As China is pursuing development of a higher quality and promoting the new development paradigm of dual-circulation, we feel encouraged that the government is ushering in a higher level of opening-up to attract foreign investment and seek balanced and sustainable growth.

A2 With our core business perfectly aligned with China's market demands such as industrial digitalization and decarbonization, Honeywell is well-positioned to participate in China's high-quality development as the country further deepens reform and opening-up.

At the fourth China International Import Expo (CIIE) to be held later this year, Honeywell's booth area will more than double the size of last year, fully demonstrating Honeywell's confidence in the expo as the company participates in the event for the fourth consecutive year. Honeywell is also fulfilling its commitment to the Chinese market by increasing our local investment and R&D efforts.

A3 As China continues its economic growth in a more balanced and sustainable manner, the emerging mass market represents the biggest growth segment in China in the coming decades. It is Honeywell's strategy to accelerate long-term sustainable growth beyond the high-end and traditional mid-markets.

The establishment of wholly owned subsidiary Huosheng Industrial Technology Co Ltd in Wuhan, Hubei province, last year as headquarters for the company's mass-mid segment (MMS) business in China marks a key milestone in our growth and development. It demonstrates Honeywell's commitment to developing and innovating new technologies and solutions for the local market.

A4 In April 2021, Honeywell pledged to be carbon-neutral in its facilities and operations by 2035. This commitment is in line with China's decarbonization goals and sustainable development direction as about half of Honeywell's new product introduction research and development investment is directed toward products that improve environmental and social outcomes for customers.

With a range of proven technologies to reduce carbon emissions, Honeywell is committed to developing products and technologies that address energy and environmental needs in China.

A5 China has made remarkable progress in its business environment, which has played a critical role in promoting the recovery of business entities and China's economy despite the impact of COVID-19. We are glad to see continuous reforms to encourage foreign investment and to vitalize market players.

We feel encouraged by China's ongoing efforts to facilitate foreign investment, and we are optimistic that such efforts will further increase the resilience of the Chinese economy and boost its attractiveness for foreign companies and investors.