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(Summer Davos) Interview: McKinsey Greater China chairman upbeat about China's innovation-driven, quality-oriented growth

Xinhua
| June 26, 2025
2025-06-26

TIANJIN, June 26 (Xinhua) -- The "next China" is still going to be China for a very long time, said Joe Ngai, chairman of McKinsey & Company in Greater China, who has reaffirmed his conviction that the country's economic resilience and evolving growth quality will sustain its global significance.

"When I said that the 'next China' is still China, I meant it in a sense that there is no substitute for China in terms of its relevance, its size, its growth, and how it affects the world," Ngai told Xinhua on the sidelines of the Summer Davos held in north China's Tianjin Municipality.

Despite headwinds complicating China's quest to meet its GDP growth target of around 5 percent this year, Ngai opted to shift focus from the numerical figure to its underlying composition, highlighting the need for "more value-added growth, higher returns on capital, and a greater emphasis on services and consumption."

"I'm much more excited about the quality of growth of the Chinese economy, which I think is increasing," he said.

Ngai identified emerging sectors as pivotal to elevating growth quality. He noted in a recent article that China's economic journey over the past two decades has been defined by its ability to seize opportunities in high-growth arenas. "As the world transitions to a new set of transformative sectors, China is well-positioned to thrive."

"The great part of the Chinese economy is that there are many new engines that you can get very excited about," he explained, citing breakthroughs in artificial intelligence, life sciences and robotics, which are driving productivity gains.

Ngai said China's innovation endeavors are now globally leading in numerous areas. "Many of our multinational clients tell me that innovation in China, including its intensity, creativity, and the extent of how we think about things, is really very inspiring."

The next phase of China's innovation, he predicted, will offer the world not just products but ideas, IP and talent, citing homemade global animated blockbuster "Ne Zha 2."

The domestic market remains a cornerstone of China's high-quality growth, according to Ngai.

As consumption patterns evolve, he noted that Chinese consumers prioritize value and quality over brand origin, pushing both domestic and multinational firms to innovate faster.

China is a market where things change very quickly, he added. "Those who can win in China's fast-changing market, can win anywhere." Enditem

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