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China vital for Asia in green growth, innovation, says business leader

The trend that Chinese firms are increasingly trading and investing with the rest of the region is helping to create what is the world's biggest economic bloc as well as an important global driver, a business leader said.

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This aerial photo taken on Oct. 23, 2022 shows the Dongfang Lingang Industrial Park in Dongfang City, south China's Hainan Province. (Xinhua/Pu Xiaoxu)

China matters a lot for the rest of Asia, given its pivotal role in global manufacturing and innovation, a business leader has said.

Home to the world’s leading regional trade agreements such as the Regional Comprehensive Economic Partnership (RCEP), Asia is a leader in global collaboration, Ben Simpfendorfer, a partner at the Hong Kong-based international management consulting firm Oliver Wyman, told Xinhua on Thursday.

“Asia accounts for half the world’s population, which makes it a major source of consumer demand, and where China, of course, plays an important role,” Simpfendorfer said on the sidelines of the Boao Forum for Asia annual conference, which concluded on Friday in Boao, a coastal town in China’s island province of Hainan.

Noting that China is both a global manufacturing hub and a world innovation hub, Simpfendorfer said, “China’s trade or connectivity with the rest of the region is of vital importance, both in terms of exports and investment.”

Countries are ramping up local production, especially in manufacturing, to boost employment and income. This trend, said Simpfendorfer, is a key driver of growth and is reshaping global supply chains.

The trend that Chinese firms are increasingly trading and investing with the rest of the region is helping to create what is the world’s biggest economic bloc as well as an important global driver, he said.

“Chinese firms are participating so far rather than just exporting products to the rest of the world … They are also looking to invest in manufacturing in other countries,” Simpfendorfer said. “In that way, China is contributing to global growth.”

“I think the region’s commitment to multilateralism, including China’s own commitment, is very important to the success of the region’s future growth,” he added.

“We need to tap into innovation-led growth globally; we need to develop new clean technologies in order to support the transition or support the climate transition,” said Simpfendorfer.

Noting that China has a very important role to play as the global innovation hub for clean technology, he said China “has been focusing on a higher quality rather than greater quantity growth for a number of years now.”

As for the new quality productive forces, Simpfendorfer said that is doubling down on or re-emphasizing the trend of high-quality development.

The impact of investment in innovation is already visible through China’s rising exports of new energy vehicles and other clean technologies, he said, emphasizing the significant role these technologies play in overall growth and investment.

“Anything that amplifies or increases the amount of investment into this type of production should be welcomed as that lays the foundation for the next three decades of growth,” he said.

Xinhua News Agency

Founded in 1931, Xinhua News Agency is one of the largest news organizations in the world, with over 10,000 employees across the globe. As the main source of news and information for China, Xinhua plays a key role in shaping the country's media landscape and communicating its perspectives to the world. The agency produces a wide range of content, including text news articles, photos, videos, and social media posts, in both Chinese and English, and its reports are widely used by media organizations around the world. Xinhua also operates several international bureaus, including in key capitals like Washington, D.C., Moscow, and London, to provide in-depth coverage of global events.

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