Despite the uncertainties of today's world, innovation, trust and collaboration will ensure that companies move through current challenges to a more stable and prosperous future in China and around the world, the CEO of IBM said on Wednesday.

Arvind Krishna, the IBM chief, said via a video link at the 2022 World Internet Conference, that technology has become a fundamental source of competitive advantage, serving as a catalyst that can help businesses boost productivity, innovation, and their ability to scale.

"China's digital economy is dynamic and competitive," Krishna said. "We want to work alongside our Chinese partners and clients to address their needs and help them solve their most critical challenges."

According to Krishna, IBM's approach is based on the idea of co-creation and the US company is co-creating with its clients and partners in the Chinese market in two typical areas: sustainability and digital transformation.

"We are applying IBM's technology and expertise to help China achieve its 30-60 carbon reduction goals through a full package of offerings, from zero-carbon strategy and ESG compliance plans, to carbon calculation and appraisal, as well as supply chain and asset management," Krishna said.

ESG refers to environmental, social and governance factors, which are central to measuring the sustainability of an investment in a company or business.

On digital transformation, IBM has been helping foster innovation and accelerate the digital transformation of a variety of industries in China since the 1980s, the senior executive said.

IBM's clients, he adds, include the top 10 Chinese companies in the banking, telecom, life insurance, and automotive industries, among others.

"By bringing unique artificial intelligence and cyber resilience capabilities to the hybrid cloud for our banking customers, IBM continues to serve as a force of innovation and stability in China's financial market," Krishna said.

In cloud computing, a public cloud is delivered via the internet and shared across organizations. A private version is cloud computing that is dedicated solely to one organization. Hybrid cloud is a solution that uses both public and private clouds.

The US market research company Gartner Inc said hybrid cloud adoption in China has become a dominating trend.

"China's hybrid cloud adoption rate reached 42 percent in 2021, and the number is expected to hit 70 percent by 2024, far higher than the global average of 50 percent," Gartner said.

"The hybrid cloud market in China has maintained a vigorous and rapid development trajectory," said Fu Liang, an independent IT analyst.