2. China's overall automobile market still has many opportunities for growth. Vehicle ownership in the US is 800 per 1,000 people, but in China the number is only just approaching 80, representing great room for domestic expansion. As just mentioned, the urbanization process is taking place across all regions of China, along with the continued expansion of the middle class. This represents further potential in the premium segment in China as it accounts for around 15 to 20 percent of cars in developed countries, but is still quite low in China at 5 percent. Chinese consumers are also becoming more sophisticated, and are not only very brand-savvy but also appreciate the inherent quality of premium products. There is also a shift toward younger consumers with stronger consumption power, who also are increasingly embracing the flexibility of financial solutions.

Daimler's local presence includes a number of initiatives across China, covering our complete range of operations in cars, vans, and trucks, spare parts, and financing. In all of these areas, Daimler is increasing its investment in China, which started with a strategic plan to invest 3 billion euros ($3.8 billion) with our Chinese partners in plant expansion, new engine plants, and dealership network development. We have continued confidence in the sustainable development of our range of investments in the growing Chinese auto market.

3. As a high-end manufacturer we need highly trained, dedicated personnel. As China's business environment develops, the market for talented workers becomes a big challenge. That is why our long-term strategy for sustainable growth includes a strong focus on local human resources and active investment in the local workforce.

To ensure that our level of service also keeps pace with the innovation of our cars, we have a number of training and educational initiatives in China, including the Daimler China Automotive Academy and a new training center in Xi'an, Shaanxi province. Another new training center will be established in Shanghai in the coming years, the biggest MB training center outside Germany. We have the most innovative training program, based in China and spanning three continents with the Carl Benz Academy launched last year as a pilot program.

4. We are very confident of a smooth transition to China's next leadership. Under the new leadership, we expect that China will continue with its current policies as well as implementing the changes needed to adapt to the changing environment in the future.

The 12th Five-Year Plan that started in 2011 already provides a good foundation for the continuity of economic goals as the government transitions. The current plan's overall target of higher quality growth resonates with Daimler's core business philosophy, including specific key points such as increased energy efficiency, energy conservation, environmental protection, promotion of high-end manufacturing, as well as a focus on clean-energy vehicles.

China's auto industry has boomed over the past few years, with many independent companies producing vehicles for domestic consumption based on low cost. Now, as we're seeing growth slow to more sustainable levels, the government is also promoting quality over quantity and calling for industry consolidation to pool R&D resources to improve the quality of Chinese autos. This is a welcome development that will help produce a more sustainable domestic auto industry that will also be able to compete at an international level. The government has shown support for innovation in the auto industry with subsidies for more efficient autos and alternative-energy vehicles.

5. Daimler has also invested in the development of a new all-electric vehicle with our partner BYD, designed in China and built for the Chinese market. The Denza will open up a new sophisticated segment in the electric vehicle market and we're very pleased that the government is continuing to provide incentives to encourage the use of EVs and is also building up the necessary infrastructure with charging stations.

We feel we are supporting those initiatives and making a strong contribution to raising the bar of the China auto industry with our joint venture investments. This includes R&D and production of our latest models in China, as well as building two engine plants, which represent the best of our technology and the latest in energy efficiency.

Ross Shuster, Asia President

UTC Climate, Controls & Security

1. The slowdown of the global economy has affected the Chinese economy, which has recorded robust growth in recent years. However, we continue to see tremendous potential in China for heating, ventilation, air conditioning, and fire and security products, driven by the country's ongoing urbanization and economic development.

2. UTC Climate, Controls & Security has a strong commitment to and confidence in the Chinese market. Our investment in product R&D has increased over the years. We have a pipeline of more than 30 new products under development in our China R&D center. These products will benefit not only the Chinese market but the global market, too.

3. China remains a key market for UTC. We will continue to invest in product innovation, talent development and expanded services in order to best meet the needs of the markets and our customers, and to support China's need for the sustainable development of buildings and cities.

4. Stability and an open market are critical for corporate investment, and they have been the critical factors in China's economic success during recent decades. We trust the new leadership in China will continue to maintain a favorable environment that will take the country to the next level of success in the years to come.

5. We trust the new leadership in China will continue to maintain a favorable environment that will take the country to the next level of success in the coming years.