China's new five-year blueprint will create business opportunities and long-term growth for the world's largest construction and mining equipment maker Caterpillar, a senior company official said. China's goal is to double the size of its economy and per capita income by 2020.
Despite an industry downturn in China, Caterpillar sees it as a natural transition and is optimistic about China from a long-term perspective, said Chen Qihua, vice president of Caterpillar Inc. and chairman of Caterpillar China, in an email interview with Xinhua. Chen said the higher premium China has placed on innovation, smart manufacturing and energy saving means more collaboration opportunities for the company.
Cat suffered double digit losses in 2015 in part due to China's economic slowdown. But Chen says achieving China's goal of a better economy by 2020 will provide Caterpillar with more opportunities, especially in the Belt and Road Initiative, also known as the Silk Road Rebuild Project.
"China is an integral part of Caterpillar's long-term global strategy, and the investment we have made in China is for the long term," Chen said.
Caterpillar's vice president of Financial Services, Michael DeWalt, speaking at a JPMorgan event gave investors an update on the organization's view on China. So far, despite troubles in China's economy, Caterpillar is quite content with its current market position and growth prospects.
Cat also said it plans to reduce 5,000 jobs this year, as part of a larger program to reduce its workforce by 10,000 workers by 2018, in a bid to cut costs and become a more efficient company.
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