World leaders at the 17th Annual Meeting of the World Economic Forum’s New Champions (Summer Davos) held recently in Dalian City, Liaoning Province, northeast China.
By Mark Longyen, News Agency of Nigeria (NAN)
Amid global economic uncertainty driven by geopolitical tensions, supply chain disruptions and slowing growth, China is reinforcing its role in economic resilience and international cooperation for shared prosperity.
At the centre of this effort is innovation-led development, advanced manufacturing and technological self-reliance, which authorities say support national growth and global economic recovery.
However, China’s rapid industrial expansion has intensified debate among major trading partners over its growing influence in global trade and industrial competitiveness.
In recent years, the United States and parts of Europe have raised concerns over what is termed “China Shock 2.0,” referring to rising low-cost Chinese exports.
Critics argue that strong state support for strategic sectors has enabled rapid expansion of electric vehicles, batteries, solar panels, semiconductors and other advanced technologies.
They warn that this expansion may create excess capacity and intensify competition for manufacturers in other economies.
Supporters, however, argue that China’s competitiveness is driven more by long-term investment in research and development, industrial upgrading, skilled labour and integrated supply chains than subsidies.
The ongoing debate echoes the earlier “China Shock 1.0,” a phrase used by economists to describe the surge in low-cost Chinese manufacturing exports between 2000 and 2010 following China’s accession to the World Trade Organisation.
While that earlier phase reshaped global supply chains and lowered consumer prices worldwide, it also contributed to job losses in some manufacturing sectors, especially in advanced economies.
Against this backdrop, China’s leaders are currently presenting a different narrative; one that frames the country’s technological progress as a catalyst for shared global development rather than a source of economic disruption.
That message featured prominently at the recent World Economic Forum’s 17th Annual Meeting of the New Champions, popularly known as the Summer Davos, held in the northeastern Chinese city of Dalian in June.
The annual forum, established in 2007, serves as a global platform for dialogue on entrepreneurship, technology, innovation and economic policy, while offering insight into China’s evolving development strategy and long-term planning.
Speaking during the event, Chinese Premier Li Qiang challenged the prevailing “China Shock 2.0” narrative by presenting what he described as “China Opportunity 2.0”; a vision centred on innovation-driven growth, industrial upgrading and expanded international cooperation.
Chinese Premier, Li Qiang, addressing participants at the Summer Davos Summit.
Addressing more than 1,700 participants from over 90 countries and regions, Li argued that China’s technological advances should be viewed as opportunities for global development rather than sources of economic anxiety.
According to him, an innovation-driven China is creating broader opportunities for businesses, investors and development partners worldwide.
“For global development, ‘China Opportunity 2.0’ means broader access to advanced technologies and more widely shared development benefits.
“For enterprises around the world, ‘China Opportunity 2.0’ means comprehensive innovation empowerment and high-yield investment opportunities,” the premier said.
Building on that position, Li identified innovation, stability, vitality and deeper integration with the global economy as the defining characteristics of China’s current economic strategy.
He maintained that China’s competitive advantage was rooted not merely in government support but in the strength of its industrial ecosystem, sustained investment in Research and Development (R&D), and the capacity of its enterprises to commercialise innovation at scale.
To illustrate the point, the premier cited Chinese technology companies such as Huawei, which, he said, had continued to achieve technological breakthroughs in spite of facing external financial and technology restrictions.
According to Li, China will continue to pursue high-quality development driven by scientific innovation and closer integration between research institutions and industry.
He also noted that an increasing number of multinational corporations were shifting from simply “producing in China” to “creating in China” by expanding their research, design and innovation activities within the country.
Looking ahead, Li said China’s 15th Five-Year Plan, which begins this year and runs until 2030, would place greater emphasis on strengthening research in critical technologies and increasing investment in basic scientific research.
“We will further strengthen research on key technologies and significantly raise the proportion of basic research funding,” he said.
He added that enhanced original innovation would provide fresh momentum for China’s long-term economic development while creating additional opportunities for international cooperation.
Furthermore, Li called for stronger global collaboration in science, technology and innovation, urging governments and businesses alike to view technological advancement as a shared opportunity rather than a source of geopolitical rivalry.
His remarks came at a time when competition over emerging technologies; including artificial intelligence, semiconductor manufacturing, renewable energy and advanced communications infrastructure, has become intertwined with global trade and industrial policy.
Indeed, analysts note that many advanced economies have simultaneously sought to strengthen domestic manufacturing through industrial policies of their own, reflecting a broader global race to secure strategic technologies and resilient supply chains.
Against this wider backdrop, participants at the forum largely echoed Li’s call for greater international cooperation.
Nomin Chinbat, Mongolia’s Minister of Digital Development, Innovation and Communications, described China’s technological advancement as presenting opportunities for regional collaboration.
According to him, Mongolia’s abundant renewable energy resources, mineral wealth and favourable climate could complement China’s growing demand for digital infrastructure, including data centres.
“China has the ‘East Data, West Computing’ initiative, and locations such as Mongolia can complement that strategy,” he said.
Similarly, Matts Johansen, Chief Executive Officer of Aker BioMarine, said technological change should be viewed through the lens of opportunity rather than fear.
“Innovation drives humanity forward. While rapid change can be challenging, it also creates opportunities for businesses, industries and societies to evolve,” he said.
Beyond government officials, executives of several multinational corporations also reaffirmed the strategic importance of the Chinese market to their global operations.
Many argued that China’s combination of a vast consumer base, sophisticated manufacturing ecosystem and expanding innovation capacity continues to make it an important destination for investment, research partnerships and product development.
Wu Chun, Managing Partner of Boston Consulting Group (BCG) China, said multinational companies continued to derive significant value from China’s evolving industrial landscape.
According to him, the country’s large domestic market, rapidly changing consumer preferences and willingness to embrace emerging technologies have continued to create fresh opportunities for innovation and business expansion.
Likewise, Pontus Erntell, head of IKEA China, described the country as a strategic market where the company intends to deepen collaboration with local partners.
“China is one of the few countries outside Sweden where we have the entire value chain. It is a market where we want to continue developing, learning and collaborating,” he said.
Jiang Ying, Chair of Deloitte China, also pointed to the country’s comprehensive industrial system, resilient economic fundamentals and continued market opening as factors supporting long-term growth.
She added that emerging sectors such as artificial intelligence and the low-altitude economy were expected to become important drivers of future economic expansion alongside traditional industries.
Echoing similar views, Chafic Nassif, Senior Vice President of Ericsson and Head of Northeast Asia, described China as one of the world’s most significant technology markets because of its scale, speed of innovation and integrated industrial ecosystem.
He expressed hope that China would continue expanding openness and international collaboration to enable businesses across different markets to innovate together.
While many participants at the forum expressed confidence in China’s innovation-driven development strategy, economists note that the broader international debate extends beyond technological progress to questions of market competition, industrial policy and the future of global trade.
In recent years, institutions including the International Monetary Fund (IMF) and the World Bank have emphasised that innovation, productivity growth and international trade remain critical drivers of global economic expansion.
At the same time, they have also underscored the importance of maintaining fair competition, transparent trade rules and resilient supply chains to ensure that the benefits of technological advancement are broadly shared.
Against this backdrop, some analysts argue that technological competition should not be viewed solely through a geopolitical lens.
Instead, they say greater focus should be placed on international collaboration that can accelerate innovation and address shared global challenges such as climate change, energy transition, food security and digital transformation.
Sam Pam, a Nigerian economist, said China’s growing investment in advanced manufacturing and emerging technologies had significant implications for developing economies seeking affordable access to clean energy technologies and digital infrastructure.
According to him, the global economy stands to benefit when technological breakthroughs are commercialised at scale and made more accessible across markets.
“China’s economic trajectory is projected to contribute substantially to global growth.
“As new technologies become more affordable through large-scale production, many developing countries could benefit from improved access to innovation, provided international cooperation continues,” he said.
Chinese President Xi Jinping, transforming the country through unprecedented innovation-driven development initiatives targeting global shared prosperity.
Official figures released by China’s Ministry of Commerce indicate that the number of foreign-invested enterprises in the country reached about 533,000 by the end of 2025, representing an average annual increase of 4.5 per cent from the end of 2020.
The ministry also reported that China’s stock of foreign direct investment (FDI) approached four trillion U.S. dollars over the same period, reflecting continued investor interest in spite of a more challenging global economic environment.
Beyond investment, China has continued to pursue measures aimed at expanding market access and deepening economic integration.
These include extending zero-tariff treatment to a number of developing countries, broadening access to sectors such as finance, healthcare and education, expanding pilot free-trade zones and accelerating the development of the Hainan Free Trade Port.
China has also increased investment in strategic sectors including artificial intelligence, digital infrastructure, intelligent connected vehicles and next-generation telecommunications as part of its broader industrial modernisation agenda.
According to Chinese authorities, the country currently hosts 24 of the world’s top 100 innovation clusters and continues to promote open-source artificial intelligence platforms for developers and businesses.
In addition, the government recently introduced a 15-point action plan designed to improve the investment climate through wider market access, simplified investment procedures, stronger investor services and enhanced protection for foreign enterprises.
Supporters of these initiatives argue that China’s ability to rapidly commercialise emerging technologies has contributed to lowering production costs for products such as electric vehicles, batteries and solar photovoltaic systems, thereby supporting the global transition to cleaner energy.
Critics, however, caution that rapid industrial expansion and state-backed support measures could also intensify trade tensions if concerns over excess capacity and competitive imbalances are not addressed through dialogue and internationally agreed trade rules.
Nevertheless, there is broad consensus among economists that technological innovation will remain a key determinant of global competitiveness over the coming decades.
For many developing countries, including those across Africa, the central challenge will be identifying opportunities to leverage technological advances, attract investment, strengthen local manufacturing and build the human capital needed to participate more effectively in the evolving global economy.
As China embarks on its 15th Five-Year Plan, its emphasis on innovation, industrial upgrading and greater openness is expected to remain an important feature of the international economic landscape.
Whether described as “China Shock 2.0” or “China Opportunity 2.0,” the country’s technological transformation is likely to continue shaping global trade, investment and industrial development for years to come.
Ultimately, the extent to which these developments translate into shared global prosperity will depend not only on China’s domestic policies.
It will also depend on the willingness of governments, businesses and international institutions to strengthen cooperation, uphold an open, rules-based trading system, and ensure the benefits of innovation are widely shared.
For policymakers, investors and development partners alike, the evolving debate underscores a broader reality in an increasingly interconnected world.
Sustainable economic growth will depend as much on collaboration and responsible innovation as on technological leadership itself.(NANFeatures)
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