Ulrich Spiessholfer, Chief Executive Officer of ABB. [Photo/abb.com]

Despite recent headwinds the long-term growth driver of the Chinese economy is intact, says Ulrich Spiessholfer, Chief Executive Officer of ABB, a global leading power and automation company.

"In the short term, the Chinese economy has a difficulty environment, and we see significant headwinds from different areas," Spiessholfer told a Capital Market Day event held in London on Wednesday.

"But it is still the world's second largest economy, with a strong population. In the long-term, the growth driver in the market is intact; and there will be investment in infrastructure and innovation," says Spiessholfer.

Due to tough market condition, ABB plans to cut $1 billion in administrative workers' costs by the end of 2017, and it has adjusted its annual revenue growth target for 2015-2010 down to 3-6% from a forecast of 4-7%.

Spiessholfer said due to the tough market condition, the company is trying to "get as closely as possible to its customers, and the 2,500 R&D employees in China are focusing strongly in locally made products to compensate it.

"Our ambition is that we have been in China for 108 years, and we will stay in China for a long term. We are committed to the market despite its present difficulties," says Spiessholfer.

ABB, a Fortune 500 company headquartered in Zurich, Switzerland, has nearly 19,000 employees in China. In 2014, China was ABB's second largest market worldwide with $5.8 billion in revenue.

Spiessholfer also expressed interest in "Made in China 2025", a government strategy aiming at revamping the country's manufacturing industry.

He says "Made in China 2015" gives ABB a "strategic opportunity" to provide quality automation and power services to manufacturing industry of China.

To contact the reporter: machi@chinadaily.com.cn