True innovation dividend
'China Opportunity 2.0' ushers in a new era of cocreation and mutual progress for China-Africa cooperation and the Global South
As the global economy enters a new era of technological competition, innovation has become the defining currency of modernization. The next great development opportunity will therefore be shaped not by capital alone, but by innovation. That is why the world's economic conversation is no longer centered solely on where growth will come from — it is increasingly about who will shape the technologies, industries and partnerships that define the next phase of global development.
Against the backdrop of slowing global growth, geopolitical fragmentation and rising protectionism, the 17th Annual Meeting of the New Champions of the World Economic Forum, also known as the Summer Davos, held in Dalian, Liaoning province, from June 23 to 25, delivered a message that resonates far beyond China. Premier Li Qiang's articulation of what many observers call "China Opportunity 2.0" reflects China's transition from providing market dividends to generating innovation dividends for the world. Li argued that China's technological progress should be viewed not as a "China Shock 2.0" but as an opportunity that drives global growth through innovation, industrial upgrading and deeper international cooperation. Rather than signaling a retreat from globalization, the message reaffirmed China's commitment to high-standard opening-up, technological collaboration and mutually beneficial development. For Africa and the wider Global South, this innovation dividend could help reshape modernization over the coming decades.
China has entered a new phase of development driven by technological capability rather than low-cost manufacturing. China has evolved from being the "world's factory" to being a leader in technological innovation, green industries, digital solutions and high-quality development, investing nearly 3.93 trillion yuan ($578 billion) in research and development in 2025. High-tech manufacturing has become a major driver of industrial growth, reflecting the country's successful transition from technological innovation to large-scale industrial application.
Premier Li emphasized that these achievements rest on sustained investment in research and development, a complete industrial system, a vast domestic market and continued openness. Rather than treating technological progress as a zero-sum competition, he argued that for global development, "China Opportunity 2.0" means more accessible advanced technologies and widely shared outcomes, and that China is committed to an open approach to innovation.
Africa stands to benefit significantly from this transition. Over the past seven decades, China-Africa cooperation has focused on addressing the continent's infrastructure deficit through the building of railways, highways, ports, industrial parks, power facilities and telecommunications networks. These investments have strengthened regional connectivity and laid the foundations for structural transformation. Today, however, infrastructure is increasingly becoming the platform upon which innovation, industrial upgrading and productive transformation can be built.
The partnership is now entering a more advanced phase centered on technological upgrading, industrial innovation, green development, digital transformation and human capital development. It also reflects the broader evolution of South-South cooperation — from financing infrastructure to strengthening innovation ecosystems, knowledge sharing and institutional capacity.
The depth of this relationship is evident in the numbers. China has remained Africa's largest trading partner for 17 consecutive years, with bilateral trade reaching a record $348 billion in 2025, according to China's General Administration of Customs. The composition of trade is gradually shifting as African countries expand exports of agricultural, processed and manufactured goods. China's expanded zero-tariff treatment for products from the least-developed African countries with which it has diplomatic relations, together with the African Continental Free Trade Area, provides a stronger foundation for industrial cooperation, technology transfer and regional value-chain development.
Yet the significance of "China Opportunity 2.0" extends well beyond trade. Its greatest contribution lies in accelerating capability accumulation across developing economies. China's comparative advantage increasingly resides in innovation ecosystems rather than labor costs. Cooperation in renewable energy, digital infrastructure, advanced manufacturing, artificial intelligence, vocational education, agricultural technology and scientific research offers African countries opportunities to strengthen technological capabilities, industrial competitiveness and long-term economic resilience by learning from Chinese practices and adapting relevant solutions to local contexts.
Green development illustrates this transformation. While Africa contributes only a relatively small share of global greenhouse gas emissions, it remains among the regions most vulnerable to climate change. China is the world's largest producer of solar photovoltaic panels, batteries and electric vehicles, accounting for more than 80 percent of global solar photovoltaic manufacturing capacity. Joint investment in clean energy infrastructure, local manufacturing and skills development can expand electricity access, create employment, reduce development costs and support low-carbon industrialization. The innovation dividend therefore extends beyond technology to encompass sustainable industrialization, energy security and inclusive economic transformation.
Digital transformation presents another major opportunity. Mobile finance, e-commerce, cloud computing and digital public services are becoming fundamental drivers of competitiveness. China's experience demonstrates how innovation can expand financial inclusion, improve public services and transform productivity. Similar partnerships could help African economies leapfrog traditional development constraints while supporting entrepreneurship and industrial upgrading.
According to the World Bank, Africa's digital economy exceeded $180 billion in 2025. And stronger cooperation in digital infrastructure, digital skills, cybersecurity and innovation ecosystems could become a defining pillar of Africa-China cooperation.
However, technology alone does not produce modernization. Successful development depends on institutions capable of transforming external opportunities into domestic productive capacity through investment in education, research, technical skills, industrial policy and governance. China's experience demonstrates that long-term modernization is driven by sustained policy coordination, institutional learning and continuous upgrading of productive capabilities.
This lesson is particularly relevant for the Global South. The UN Trade and Development warns that several developing economies have limited access to affordable finance and continue to face climate shocks. The next phase of China-Africa cooperation should therefore be judged not only by the infrastructure constructed but by the institutions, innovation systems, skills and productive capabilities it creates.
China's development experience is not presented as a universal blueprint. Every country has unique historical conditions and development priorities. Instead, "China Opportunity 2.0" demonstrates that modernization can follow diverse pathways while remaining open to international cooperation, technological exchange and mutual learning.
As global uncertainty reshapes development, China-Africa relations are entering a new phase. If the first phase of China-Africa cooperation was defined by infrastructure and skills development mostly, "China Opportunity 2.0" suggests that the next chapter can be written through innovation ecosystems, green transformation, digital partnerships, scientific collaboration and industrial capability building.
For Africa and the wider Global South, the next development leap will depend not only on accessing Chinese innovation but also on strengthening domestic institutions, investing in human capital and building the productive capabilities needed to transform technological opportunities into sustainable growth.
This shift has the potential to move Africa-China cooperation toward cocreation of knowledge, technology and industrial capacity. "China Opportunity 2.0" thus represents a broader vision of development in which innovation, openness and cooperation become shared global public goods — rather than exclusive national advantages — in an increasingly interconnected world. For Africa, the opportunity is not merely to participate in China's innovation journey, but to harness it in ways that accelerate its own industrial transformation, strengthen resilience and advance a distinctly African pathway to modernization.
The author is an associate professor and the executive director of the Center for Nigerian Studies at the Institute of African Studies at Zhejiang Normal University.
The author contributed this article to China Watch, a think tank powered by China Daily. The views do not necessarily reflect those of China Daily.
