'China Opportunity 2.0' knocks for the world: China Daily editorial

China's latest industrial profit figures show the growing gap between the dubious narratives of some Western political circles and the economic reality of China. Official data released on the weekend show that the profits of China's industrial enterprises above a designated size reached 3.14 trillion yuan ($464 billion) in the first five months of the year, up 18.8 percent year-on-year.

Profits in the electronics industry more than doubled, surging 103.9 percent and contributing more than 43 percent of overall industrial profit growth. Demand from artificial intelligence, new energy and advanced manufacturing industries pushed profits in the nonferrous metals sector up 117.1 percent.

This is more than a cyclical rebound. It is the latest evidence that China's growth story is moving into a new phase — one that is being described as "China Opportunity 2.0". Increasingly, multinational companies are coming to innovate with China. The country's expanding technological ecosystem, stable industrial supply chains and accelerating commercialization of new technologies have become competitive advantages in their own right.

That was the unmistakable message emerging from this year's Summer Davos in Dalian, Liaoning province. While some economies remain preoccupied with tariffs, "decoupling" and geopolitical rivalry, many business leaders focused instead on China's growing role as an innovation platform.

In his speech at the event, Chinese Premier Li Qiang said that amid increased volatility in the international landscape, four keywords — stability, innovation, dynamism and integration — present a comprehensive outlook of the Chinese economy.

China's next phase of development will generate opportunities not simply through market size but through technological progress, industrial upgrading and deeper global cooperation. Innovation-driven development is the key to China's long-term, steady and sustained economic success. The country's innovation has been forged through relentless research and development efforts, tempered through extensive application across industries and cultivated through a robust ecosystem.

This helps explain why the "de-risking" rhetoric has produced far less economic separation in practice than its peddlers might suggest. Companies may diversify supply chains at the margins, but few are willing to detach themselves from one of the world's largest innovation ecosystems.

The "Shopping in China: Sharing New Opportunities of Open Development" report released by Xinhua Institute on Friday points to another dimension of "China Opportunity 2.0". Openness is no longer defined solely by exports or foreign direct investment. It is increasingly reflected in expanding consumer demand, digital commerce, improved business services and policies designed to make China a more attractive destination for global companies and international consumers alike. Consumption is becoming another gateway through which foreign businesses can participate in China's next stage of development.

None of this suggests that China's economy is without challenges. The property adjustment continues, external demand remains uncertain and geopolitical tensions are unlikely to disappear. But too much international commentary still evaluates China through the lens of yesterday's economy rather than tomorrow's.

"China Opportunity 2.0" is more about innovation and cooperation that are the answers to tackling the challenges to global growth. There should be joint efforts to deepen connectivity and collaboration, foster an open world economy, keep global industry and supply chains stable and unimpeded, and seek greater synergy for innovation.

On its part, the world's second-largest economy is increasingly exporting technologies and research capabilities alongside manufactured products while opening its door wider for multinational companies, investments, products and talents.

The crux of "China Opportunity 2.0" lies in participating in one of the world's fastest-moving innovation ecosystems, where research, manufacturing and commercialization reinforce one another on an unparalleled scale.

The question is whether global businesses can afford to miss the opportunities emerging from China's next phase of innovation-driven growth. That, more than any quarterly statistic, is what "China Opportunity 2.0" is really about.