'China Opportunity 2.0' knocks for global economy

Innovation momentum

New growth drivers contributed more than two-fifths of economic growth in the first half. The industrial sector maintained solid momentum, with value-added output of industries above designated size rising 5.4 percent year-on-year, while high-tech manufacturing output grew 13.3 percent, data from the National Bureau of Statistics showed.

"The growing prominence of new growth drivers, together with a clear improvement in the quality and structure of the economy, represents one of the most significant shifts taking place in China," said Yin Yanlin, deputy director of the Committee on Economic Affairs of the 14th National Committee of the Chinese People's Political Consultative Conference.

Luo Zhiheng, chief economist and head of the research institute at Yuekai Securities, said the expansion of high-end manufacturing is strengthening the resilience of China's industrial and supply chains at home, while enhancing its ability to withstand external shocks and safeguard economic security.

Meanwhile, China's technological advances and industrial upgrading are yielding growing innovation dividends for global businesses, as more foreign companies establish research and development centers and become more deeply embedded in the country's innovation and industrial ecosystems, shifting from "manufacturing in China" to "innovating in China".

In 2025, around 14,000 new foreign-invested enterprises were established in China's scientific research and technical services sector, up 27.2 percent year-on-year, according to the Ministry of Commerce.

"China is no longer merely a destination for global innovation; it has become a significant source of it," Janssens said.

That shift is creating value across the business ecosystem, Janssens noted, with China benefiting from high-value economic activity and Merck able to grow and innovate within an increasingly dynamic and supportive ecosystem.

Underscoring that trend, FDI in China's high-tech industries surged 33.2 percent year-on-year in the first half, lifting its share of total inflows to a record 42.4 percent, the Commerce Ministry said.

"The figures show that China's FDI mix is moving steadily up the value chain, while foreign investors remain bullish on the Chinese market," Yan Dong, vice-minister of commerce, said at a news conference in July. "Nearly 4,800 foreign-funded enterprises expanded their investment in China in the first half."

Kilian Aviles, executive vice-president of Dekra Group and head of its Asia-Pacific region, said China's innovation ecosystem, driven by artificial intelligence, digital technologies and green technologies, has become a key force behind the country's long-term economic resilience and industrial upgrading.

He said these advances are also boosting productivity and contributing to global technological progress.

China's innovation strength is gaining greater global recognition, with the country entering the top 10 of the Global Innovation Index for the first time in 2025 and ranking first globally for a third consecutive year in the number of top 100 innovation clusters, according to the World Intellectual Property Organization.

Artificial intelligence, in particular, has emerged as a major source of that momentum. China was home to more than 6,200 AI companies in 2025, while the value of its core AI industry exceeded 1.2 trillion yuan, according to the Ministry of Industry and Information Technology.

For Dekra, that innovation momentum has translated into continued expansion of its capabilities in China, Aviles said.

The German testing, inspection and certification company has upgraded and expanded key laboratories in Shanghai, Suzhou, Jiangsu province, Guangzhou, Guangdong province, and Hefei, Anhui province.

"China's technological advances are enabling us to broaden the scope of our global services, build capabilities for emerging industries and bring proven solutions developed in China to markets across the Asia-Pacific and beyond," Aviles said.