China's implementation of large-scale equipment upgrades and consumer goods trade-in programs will effectively attract global capital and boost consumption, supporting growth in the near term and reinforcing the economy over the long run, senior executives of foreign firms said on Tuesday.

They said that by stimulating both production and demand, these initiatives are emerging as a crucial driver for sustaining growth amid ongoing economic transformation.

China launched an action plan in March 2024 to promote the renewal of large-scale equipment and trade-ins of consumer goods as part of efforts to boost domestic demand and support economic growth, said the Ministry of Commerce.

These measures have further promoted the development of the circular economy, attracted foreign investment and innovation-related resources, created new business models and strengthened momentum for green and intelligent upgrades, thereby improving the safety and resilience of industrial and supply chains, said Guo Chaoxian, a researcher at the Institute of Industrial Economics of the Beijing-based Chinese Academy of Social Sciences.

Kone Corp, a Finnish elevator manufacturer with over 60,000 employees globally, has been actively contributing to these national initiatives by modernizing elevators to contemporary standards, particularly in aging residential complexes where the elderly face daily mobility challenges.

"We delivered one of China's largest bond-funded elevator modernization programs in Kunshan, Jiangsu province, last year, setting a new industry benchmark and becoming a national reference case. We have since replicated this model in more than 40 cities nationwide," said Joe Bao, executive vice-president of Kone China.

Bao said that smart capabilities — such as artificial intelligence monitoring — enable earlier risk detection, while big data and AI analytics drive the transition from reactive servicing to predictive maintenance.

"At the same time, digital integration with government platforms ensures stronger public oversight," he said, adding these efforts have generated strong market momentum, with double-digit growth in Kone's modernization orders in China this year.

Also upbeat about the Chinese market and the growing momentum generated by large-scale equipment renewal, Judy Marks, chairwoman, CEO and president of Otis Worldwide Corp, a United States-based elevator manufacturer, reaffirmed that China remains one of the group's most dynamic and promising markets with expanding opportunities in service and refurbishment.

After securing a contract in early September to upgrade 106 elevators in a residential community in Shanghai's Baoshan district, the US company won additional bids in Shijiazhuang, Hebei province, and Hefei, Anhui province, to renovate elevators in several neighborhoods in mid-September.

Nearly 200 aging elevators in the two cities are now slated for comprehensive modernization under the new projects, marking another step in expanding its equipment renewal footprint in China.

From accessible mobility and urban renewal to AI-enhanced safety and improved ride experiences, Otis aims to advance mobility by integrating technology with user needs, contributing to a safer and more sustainable urban life in China, said Marks.

Adele Tao, CEO of water technology for China at Japanese housing products and building material company Lixil Group, said that China's focus on fostering new quality productive forces is transforming how industries evolve. Lixil sees these policies creating strong momentum for manufacturers to innovate and upgrade.

"The Chinese government's new initiatives continue to send a strong and positive signal to the global business community," said Tao, who is also Lixil's senior vice-president.

"China is not only a leading market in manufacturing, design and innovation today, but also home to consumers who are eager to explore high-quality, smart and sustainable products. We will continue to develop and first launch products tailored to local needs, many of which have later found success in global markets," she added.

The Tokyo-based firm launched its international competence center in Guangzhou, Guangdong province, in July to support new product development and shorten lead times, particularly for components and sub-assemblies sourced from key Chinese suppliers.

zhongnan@chinadaily.com.cn