A drone photo taken on Jan. 18, 2026 shows a view of the Longtan Container Terminal at Nanjing Port, east China's Jiangsu Province. (Photo by Yang Suping/Xinhua)
Joe Ngai of McKinsey says China's stronger-than-expected 2025 economic performance, powered by resilience and technological competitiveness, is driving a shift toward high-quality, innovation-led growth that is reshaping global business strategies.
DAVOS, Switzerland, Jan. 23 (Xinhua) -- China's economy demonstrated remarkable resilience and vitality in 2025, delivering a performance that "exceeded everyone's expectations," Joe Ngai, Chairman of McKinsey Greater China, has said.
Ngai made the remarks in an interview with Xinhua on the sidelines of the World Economic Forum (WEF) Annual Meeting 2026 held on Jan. 19-23 in the Swiss mountain resort of Davos.
While China began 2025 with external uncertainties, it ended the year on a strong note. The economy proved resilient, with GDP growth reaching 5 percent, export volumes hitting record highs, and IPO financing climbing to new peaks.
The expert pointed out that since mid-2025, foreign capital has been steadily flowing into both primary and secondary markets, showing a boost in international investor confidence.
In frontier fields such as artificial intelligence (AI) and large language models, Chinese enterprises have displayed intense competitiveness, Ngai said, adding that China's dominance in "top-of-the-pyramid" sectors, including AI, autonomous driving and robotics, is undisputed.
At a new starting point in 2026, the Chinese economy is accelerating its transition to a new stage of high-quality development characterized by technology-driven growth and mature stability, Ngai observed.
A worker prepares copper rod products for transportation at the workshop of a company in Huai'an, east China's Jiangsu Province, Jan. 19, 2026. (Photo by Yin Chao/Xinhua)
In his opinion, China's high-quality growth in 2026 should be measured by how traditional industries achieve a fundamental transformation in productivity through the adoption of AI, robotics and other technologies.
Despite future uncertainties, the McKinsey expert expressed strong confidence in the adaptability of Chinese enterprises, citing their legendary flexibility and speed once a clear direction is set.
Many multinational corporations (MNCs) have found that alternatives lack China's comprehensive advantages in cost performance, technical maturity and user-friendliness, said Ngai.
He noted that Chinese enterprises are entering a new phase of globalization, evolving from being the "World's Factory" to becoming "Global Corporate Citizens." This transition involves localized operations, including job creation, establishing R&D centers and hiring global management teams in host countries, he said.
For multinationals, the role of the Chinese market has undergone a fundamental shift. "China is no longer just a massive sales market; it is now an innovation base for MNCs and potentially a wind vane for their future development," the McKinsey regional chief observed.
He said that the fierce competition in China has driven rapid product iteration and efficiency gains, making it essential for multinational corporations to remain in China in order to maintain global technological sharpness and competitiveness.
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