BCG sees foreign, local firms thriving in nation

China's vast market and high-quality development will continue to provide ample growth opportunities for foreign and domestic companies alike, said Hans-Paul Burkner, managing director and global chair emeritus of Boston Consulting Group.

As China's economy becomes more innovative, talent-intensive, consumption-driven and green, the country will help boost the recovery of the world economy amid challenges such as geopolitical tensions and weakened global demand.

"I see that there are concerted efforts here to really revive the economy to achieve the 5 percent growth target and to re-boost people's confidence," Burkner said in an exclusive interview with China Daily on the sidelines of the China Development Forum that concluded in Beijing on Monday.

He said encouraging signs are already evident, as the demand is up both in consumption and housing, and companies and governments continue to invest in production and infrastructure.

"China has displayed remarkable resilience and has shown the world what can be achieved through determination, innovation and collaboration. China will remain a key growth driver of the global economy," Burkner said.

Burkner said four powerful forces have emerged that are profoundly shaping the path forward. The first is sustainability, which entails pursuit of a high-quality development model and a greener, more balanced and more resilient economy. The second is digitalization. The third is talent development. The fourth is supply chain optimization.

Amid the accelerated digital transformation, Burkner said companies in every industry will have to act like tech companies to succeed in the coming decade.

"There are huge opportunities for using data analytics and technology in each company in each industry. For example, steel mills can use data to optimize the process and reduce energy consumption … and to really push the boundaries of their existing business model," Burkner said.

As China moves up the value chain, it will continuously play an important part in global industrial and supply chains, despite challenges such as geopolitical tensions and talk of reshoring production back to developed countries such as the United States, Burkner said.

The remarks coincided with the UN forecast that India is projected to surpass China as the most populous country this year, which has triggered worries about China's advantages in manufacturing.

But Burkner said: "Chinese companies have become very competitive, not just because of cost, but also because of quality and innovation. We see quite a lot of Chinese companies being top producers of patents and really good products, and we see them all over the world."

He said it is exactly such competitiveness and high-quality development that make the difference.

Burkner said this is an era of re-globalization as companies diversify their supply chains, and the COVID-19 pandemic highlights the importance of not putting all one's eggs in one basket, to prevent natural disasters or other accidents from causing disruption to global industrial chains.

Minister of Industry and Information Technology Jin Zhuanglong said on Monday that China will encourage domestic enterprises to integrate more deeply into global industrial and supply chains, and strengthen the coordination and allocation of resources in key industries, such as semiconductors.