China's strength and pace of innovation commended

China's accelerated effort to foster new quality productive forces is injecting fresh momentum into innovation-driven growth and creating broader opportunities for multinational companies seeking to deepen their presence in the world's second-largest economy, business executives and economists said on Tuesday.

Xi'an, the capital of Shaanxi province, is emerging as a key inland innovation hub, thanks to its strengths in technological research, advanced manufacturing and international connectivity, and the city plays a growing role in China's pursuit of high-quality development and high-level opening-up, they added.

They made the remarks in Xi'an during the "CEO: Grow with China" Roundtable, which was co-organized by China Daily and the Xi'an municipal government.

"What is now shaping China's development is the shift toward new quality productive forces," said Raquel Ramirez Alexander, vice-president of the European Union Chamber of Commerce in China and chair of its Southwest China Chapter.

It reflects the country's shift from growth driven mainly by scale and investment to growth powered by technology, productivity gains, digitalization, sustainability and advanced manufacturing, she said.

Zhu Guangyao, former vice-minister of finance, said in a video address that China's continued push for high-level opening-up and a better business environment will provide a stronger foundation for multinational companies to grow in the country.

Rogier Janssens, president of the China unit of German sci-tech giant Merck, said in a video address that China is not just an important market, but also a place "where the future is taking shape very quickly".

Simon Lacey, founder of Market Access X, an international trade and market access advisory company, said his confidence in China comes less from the size of its market and more from the pace of its innovation. What is difficult to replicate elsewhere is the speed at which products are iterated and improved in China, supported by the country's strong research and talent base, he said.

Economists said the shift is about more than innovation itself; it is about the ability to turn technological progress into stronger industrial capability.

David Blair, vice-president and senior economist at the Center for China and Globalization, said that the key to future competitiveness lies in the deeper integration of manufacturing and innovation.

Artificial intelligence and other new technologies have the potential to significantly boost productivity, but their broader impact will depend on how effectively they are applied to manufacturing, he said.

For multinational companies, the focus on moving innovation into production is already being reflected in deeper local operations.

Maria Zhang, general manager of Mubea China, said the company's China operations have moved well beyond assembly and sales over the past five years, with its plant in Changzhou, Jiangsu province, now co-developing new machine configurations for global markets.

Henry Ding, president of 3M China, said via video address that the US company has also seen China become its largest overseas market. "This year, 3M China will continue to increase its local R&D investment and plans to achieve more than 30 percent growth in new product launches compared with 2025," he added.

Buoyed by confidence shared widely among global businesses, Xi'an is moving quickly to capture opportunities created by China's push to develop new quality productive forces, drawing on its strengths in technological research, advanced manufacturing and Eurasian connectivity.

The city's role as an inland innovation hub is particularly visible in aviation — one of its pillar industries and a key area linking advanced manufacturing with international cooperation.

George Xu, executive vice-president of Airbus and CEO of Airbus China, said in a video address that Xi'an is a strategic center for China's aviation industry. Airbus' cooperation with Shaanxi has deep roots, he said, noting that the wings of every A320 aircraft delivered in China are supplied by the Xi'an Aircraft Industry Group.

"Xi'an's highly integrated ecosystem spanning industry, academia and research offers companies a faster route from basic science to commercial application," said Arthur Huang, a member of the expert committee of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products and president of CarbonNewture.

Edward Hu, country president of International Workplace Group China, said what impressed him most during his visit to Xi'an was the strong convergence of high-tech industries and a deep talent pool supported by leading local universities.

Contact the writers at zhangchenxu@chinadaily.com.cn