Swiss technology company ABB Ltd said it will continue to increase investment and strengthen research and development efforts in China, its second-largest market, especially in smart buildings and industrial sectors.

The company's new smart buildings technology center opened in Beijing on Tuesday, and the R&D center is forecast to play a key role in its global innovation system.

The center will focus on global R&D tasks including digitalization, artificial intelligence, smart energy, smart cities, and smart buildings and homes.

In the meantime, its factory's laboratory center has also opened in Beijing. With 220 sets of equipment, the center's testing scope covers terminal power distribution products and building automation products, the company said.

"We have developed products based on demand in China, and we will continue to invest in China, as we believe in the market. It's very important," said Mike Mustapha, president of ABB's smart buildings division.

"We have invested significantly in R&D and taken a local-for-local strategy in China. Besides the Beijing R&D team, we have set up an R&D center in Shenzhen, Guangdong province, which has developed some cybersecurity products," Mustapha said.

ABB signed an agreement to acquire Siemens' wiring accessories business in China in May, indicating its commitment and confidence in the country. The acquisition is expected to close in the first half of 2025.

"As urbanization, electrification, digitalization and sustainability reshape our industry, we must support the market evolution. The acquisition will enable us to offer a full range of building automation and energy distribution solutions in China," Mustapha added.

In 2011, power generation capacity in China became the largest globally, providing huge business opportunities for global industrial players.

Currently, the power generation capacity of the Chinese mainland accounts for 30 percent of the total globally, followed by the United States and Russia, accounting for 16 percent and 6 percent, respectively.

The proportions of other regions are below 5 percent, according to data from the Shenzhen, Guangdong province-based Qianzhan Industrial Research Institute.

ABB said it is bullish on its business growth potential in the next few years in China, a huge market.

The company said smart building is the largest market segment of the power industry, including businesses such as the lighting control of buildings. In addition, demand for electricity in the industrial sector is also high.

Compared with several other countries, China has a stable political, economic and social environment, which helps attract foreign investments, said Fu Yifu, a researcher at the Star Atlas Institute of Finance.

"Against the backdrop of increasing downward pressure of the global economy, the Chinese economy has maintained steady growth, indicating its resilience. China has spared no effort to promote high-standard opening-up and optimize its business environment, reflecting its sincerity in actively attracting foreign investments," Fu said.

Contact the writers at zhuwenqian@chinadaily.com.cn