ISLAMABAD
\nChina\u2019s economy continues to show robust resilience, powered by dynamic domestic consumption and a fast-evolving innovation ecosystem, according to global executives and economists attending the World Economic Forum this week in Tianjin, China Economic Net (CEN) reported on Friday.
\nJoseph Luc Ngai, Chairman of McKinsey Greater China, noted that multinational companies looking for diversification still find China central to their strategies. \u201cWhen companies talk about Plan B, China still ends up being a big part of that plan,\u201d he said.
\nA recent McKinsey survey released this month confirms a stabilizing consumer confidence in China. Rural consumers, in particular, are increasingly optimistic, supported by policies aimed at rural revitalization and faster income growth.
\n\u201cConsumers are not trading down\u2014they\u2019re becoming savvier,\u201d Ngai emphasized. \u201cThey\u2019re seeking the same quality at a better price, benefiting from China\u2019s highly competitive marketplace, which offers a broad range of quality substitutes and raises the overall standard of living.\u201d
\nChina\u2019s retail sales of consumer goods rose 6.4% year-on-year in May, marking the fastest pace since December 2023. Young consumers are leading a shift toward experience-driven spending, embracing work-life balance and contributing to economic dynamism in second- and third-tier cities.
\nThis is creating endogenous momentum, especially in high-end manufacturing and localized services. The evolving consumer mindset reflects a deeper change: increasing emphasis on personal achievement.
\nChinese buyers are gravitating toward products and services that align with self-improvement and lifestyle enrichment, from fitness to education and digital tools, according to the McKinsey report.
\nChina is also emerging as a global leader in future-defining industries.
\nMcKinsey has identified 18 arenas expected to generate between $29 trillion and $48 trillion in global revenue by 2040.
\n\u201cChina is positioned to thrive in high-growth arenas,\u201d Ngai wrote in his article published on World Economic Forum website this week, listing artificial intelligence, electric vehicles, and robotics as examples.
\n\u201cIn AI-enabled services, China\u2019s established internet and ecommerce companies such as Alibaba and Baidu are integrating generative AI into applications like personalized education, short video creation and enterprise software, while newer players such as DeepSeek have made breakthroughs in large-scale AI models.
\nChina\u2019s advancements in EVs, batteries and robotics provides a strong foundation for future growth in the arenas of tomorrow. In robotics, service robots are contributing significantly to supporting logistics and e-commerce. These examples underscore China\u2019s ability to lead in emerging arenas, leveraging its scale, innovation ecosystem and technological expertise,\u201d he wrote.
\nAs of this year, China boasts more than 4,200 maker spaces, 3,200 business incubators, and over 4,000 accelerators, according to McKinsey, reflecting a thriving grassroots innovation culture. Karim Dahou, Head of the China Unit at the OECD, highlighted three key pillars underpinning China\u2019s sustained development: open trade policies, world-class infrastructure, and exceptional education.
\n\u201cTwo-thirds of international trade now involves intermediate goods. China\u2019s openness to importing quality inputs is crucial for its industrial competitiveness,\u201d he explained. \u201cAnd its eastern regions\u2014Beijing, Shanghai, Jiangsu\u2014rank among the best in global education systems. If you take a company like BYD for instance, they have a bit more than 1 million workers, and more than 10% are engineers.
\nThat\u2019s foundational for sustaining growth.\u201dWhen industries excel, it naturally becomes a magnet for global businesses. Elisabeth Denner, Partner and Global Head of Markets at BearingPoint, a consulting firm, described China as \u201cone of the most promising and predictable markets.\u201d
\nAccording to the Innovation Report 2024 compiled by the German Chamber of Commerce in China and the consultancy, nearly 63% of German companies in China are conducting product R&D locally\u2014a strong indication of confidence in China\u2019s innovation ecosystem.
\nIlham Kadri, CEO of chemical enterprise Syensqo, highlighted China\u2019s dominance in the sector. \u201cHalf of the world\u2019s chemical output comes from China today. By 2030, that will be two-thirds.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD China\u2019s economy continues to show robust resilience, powered by dynamic domestic consumption and a fast-evolving innovation ecosystem, according to global executives and economists attending the World Economic Forum this week in Tianjin, China Economic Net (CEN) reported on Friday. Joseph Luc Ngai, Chairman of McKinsey Greater China, noted that multinational companies looking for diversification […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-487036","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n