McKinsey Greater China chairman: More convinced 'the next China' is still China

BEIJING - "After one year, I'm even more convinced that 'the next China' is still China," said Joe Ngai, chairman of McKinsey & Company in Greater China.

In an exclusive interview with Xinhua, Ngai said that China still holds the appeal for foreign investment. He said, "'The next China' is China" in a post on social media at the beginning of 2023.

Ngai reaffirmed his optimism about China because the country has a complete infrastructure, a solid manufacturing base, high production efficiency, and super-large economies for super-large markets, as well as cost advantages.

"I think one conclusion is that the supply chain that has been developed in China over the last 30 years is something that is very difficult to replicate," Ngai said.

Foreign direct investment (FDI) in the Chinese mainland in actual use stood at 1.04 trillion yuan (about $146.55 billion) in the first 11 months of the year, data from the Ministry of Commerce showed.

During the period, 48,078 new foreign-invested firms were set up across the country, up 36.2 percent year-on-year, said the ministry.

During the interview, Ngai described China's market as "innovative and energetic on a large scale."

Ngai noted that China is already well ahead in innovation in digital technology, artificial intelligence, electric vehicles, renewable energy, and many other areas.

"The speed of innovation and the speed of how policies come to market are impressive. I think there is no other market where the competitive intensity is as much as China's," he said.

"When you're in China, you really feel the energy of the market. It's hard to find anywhere else in the world, and the China market provides you the scale where you do want to invest."

Ngai is also upbeat on China's long-term macro fundamentals.

"In the medium or the long term, I think that China's economy will continue to be a very integral part of global prosperity," Ngai said.