"China is not just a manufacturing base, but a hub of innovation. We have strong R&D teams across China and maintain close partnerships with local companies. Innovation happens through collaboration," Fischer said.

BERLIN, Aug. 3 (Xinhua) -- China plays a vital role in Bosch's global strategy, particularly in the company's growing heating, ventilation and air conditioning (HVAC) business, a company executive said in a recent interview with Xinhua.

Christian Fischer, deputy chairman of the board of management at Bosch Group, said: "Chinese consumers are among the most demanding in the world. They not only embrace new technology but actively drive innovation through their expectations."

On Friday, Bosch officially announced that it has completed the largest acquisition in its corporate history, taking over Johnson Controls' residential and light commercial HVAC business, along with its stake in the Johnson Controls-Hitachi joint venture. The transaction, valued at 8 billion U.S. dollars, marks a major step in Bosch's long-term growth strategy.

"As part of this deal, we are welcoming 1,200 new colleagues in China, both in production and R&D, into the Bosch family," Fischer said.

"China is not just a manufacturing base, but a hub of innovation. We have strong R&D teams across China and maintain close partnerships with local companies. Innovation happens through collaboration," he said.

In 2024, Bosch invested 11.9 billion yuan (1.65 billion U.S. dollars) in research and development in China, where it employs around 56,000 people, including more than 10,000 R&D staff across 26 technical centers.

Bosch is also acquiring a significant minority stake in a joint venture with Chinese electronics and appliance group Hisense, he said, boosting the company's local cooperation in China's fast-evolving air conditioning market.

Meanwhile, Bosch welcomes rising competition from Chinese HVAC brands such as Haier, Hisense and Gree. "Competition drives innovation," Fischer underlined. "Bosch is a highly innovative company, and we believe we are well positioned thanks to both our technology and our strong distribution network across Europe."

On the European heating market, Fischer said a major shift is taking place, transitioning from fossil fuels to electrification. "Electrification is essential for climate neutrality, and we are committed to contributing through both heating and cooling technologies," he noted.

The integration of the new businesses nearly doubles the size of Bosch's Home Comfort division and strengthens the company's presence in Asia and North America.

Bosch's air conditioning products have traditionally targeted the premium segment, Fischer noted. However, as the market matures, the company is also working to ensure affordability and accessibility.

"Ultimately, we want to reach more customers with solutions that are efficient, smart, and climate-friendly," he said.

Looking ahead, Bosch plans to further expand its innovation capabilities in China and continue growing its global HVAC footprint. "We look forward to developing future technologies together with our Chinese partners," Fischer said. ■