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New Opportunities for China's Economy

May 16-2025   



*This article is based on a speech by Professor Huang Zhuo, Deputy Dean of National School of Development at Peking University, Deputy Dean of Institute of South-South Cooperation and Development at Peking University, Dean of BiMBA Business School at PKU NSD.

 

New Challenges & Characteristics of the Chinese Economy

Long-term challenges for the Chinese economy include the transformation of the economic growth model, an ageing population and the low share of consumption in GDP. In addition, the international geopolitical and foreign trade environment is undergoing profound changes.

The Chinese government and people are well aware of these challenges and have responded positively. Since 2025, the Chinese economy has shown more pronounced positive signals. These signals are evident not only in the macroeconomic and capital markets but also in terms of science, technology, and innovation.

First, since 2024, the country has begun to fully emphasize the development of new quality productivity, i.e. science and technology innovation to lead industrial innovation. Second, China's economy and business are entering a new phase of globalization. Third, technological change is on the horizon, especially new technologies represented by ChatGPT and China's DeepSeek, showing the approaching wave of artificial intelligence.

 

Against this backdrop, there are two main opportunities for China's economic development:

New Market Space: Going Overseas

Since 2023, Chinese enterprises and production capacity have been going overseas in full force. This stage has new features:

First, China's economy has grown fast, with the global share of manufacturing reaching 35% and the global share of foreign direct investment reaching 12%. Second, under the new situation, we have witnessed the transformation from "Made in China" to "Made in China" and "Created in China". Third, the global foreign trade environment is becoming more complicated, and countries around the world are starting to pay attention to China's production capacity.

In this round of company’s going overseas, we have many new advantages.

First, we are going overseas with technology. We have built a stronger digital infrastructure. The leading edge in cloud computing, AI, Internet of Things and other fields will continue to be transformed into the kinetic energy of enterprises going overseas.

Second, from low-cost awareness to brand awareness. In this round of going overseas, through localized design, cultural integration and high value-added services, Chinese brands have further upgraded from emphasizing cost-effective products to focusing on emotional identity and lifestyle output.

Third, the whole industry chain is working together to go overseas. We are accelerating the construction of a globalized supply chain network, striving to achieve the transformation from single-product export to deep industrial chain integration.

Fourth, we are transforming the business ecology of China's economy.

 

New Technology Space: AI & AI+

What exactly are the opportunities that AI can bring to the economy and the business?First, it gives rise to new industries. Second, AI will strengthen traditional industries. Third, AI improves the efficiency of people and the functioning of society as a whole.

DeepSeek has improved the global AI industry ecosystem, driven the explosion of AI applications in China, and encouraged global capital markets to revalue the assets of Chinese tech companies. Meanwhile, more and more Chinese tech companies are rocking the world.

 

How Should Entrepreneurs Seize the Opportunities of AI?

How should entrepreneurs seize the growth opportunities in the AI era? Most importantly, entrepreneurs need to enhance their knowledge of AI and improve their AI leadership. Entrepreneurs need to think ahead to gain insights into AI trends and technology characteristics, and explore ways to integrate AI into the industries in which we operate. Businesses should begin to develop an AI strategy and integrate it into their core strategy and overall objectives. Both technology-based companies and traditional industries such as manufacturing and services can use AI to improve productivity, reduce costs and increase efficiency.

New Opportunities for China's Economy

May 16-2025   



*This article is based on a speech by Professor Huang Zhuo, Deputy Dean of National School of Development at Peking University, Deputy Dean of Institute of South-South Cooperation and Development at Peking University, Dean of BiMBA Business School at PKU NSD.

 

New Challenges & Characteristics of the Chinese Economy

Long-term challenges for the Chinese economy include the transformation of the economic growth model, an ageing population and the low share of consumption in GDP. In addition, the international geopolitical and foreign trade environment is undergoing profound changes.

The Chinese government and people are well aware of these challenges and have responded positively. Since 2025, the Chinese economy has shown more pronounced positive signals. These signals are evident not only in the macroeconomic and capital markets but also in terms of science, technology, and innovation.

First, since 2024, the country has begun to fully emphasize the development of new quality productivity, i.e. science and technology innovation to lead industrial innovation. Second, China's economy and business are entering a new phase of globalization. Third, technological change is on the horizon, especially new technologies represented by ChatGPT and China's DeepSeek, showing the approaching wave of artificial intelligence.

 

Against this backdrop, there are two main opportunities for China's economic development:

New Market Space: Going Overseas

Since 2023, Chinese enterprises and production capacity have been going overseas in full force. This stage has new features:

First, China's economy has grown fast, with the global share of manufacturing reaching 35% and the global share of foreign direct investment reaching 12%. Second, under the new situation, we have witnessed the transformation from "Made in China" to "Made in China" and "Created in China". Third, the global foreign trade environment is becoming more complicated, and countries around the world are starting to pay attention to China's production capacity.

In this round of company’s going overseas, we have many new advantages.

First, we are going overseas with technology. We have built a stronger digital infrastructure. The leading edge in cloud computing, AI, Internet of Things and other fields will continue to be transformed into the kinetic energy of enterprises going overseas.

Second, from low-cost awareness to brand awareness. In this round of going overseas, through localized design, cultural integration and high value-added services, Chinese brands have further upgraded from emphasizing cost-effective products to focusing on emotional identity and lifestyle output.

Third, the whole industry chain is working together to go overseas. We are accelerating the construction of a globalized supply chain network, striving to achieve the transformation from single-product export to deep industrial chain integration.

Fourth, we are transforming the business ecology of China's economy.

 

New Technology Space: AI & AI+

What exactly are the opportunities that AI can bring to the economy and the business?First, it gives rise to new industries. Second, AI will strengthen traditional industries. Third, AI improves the efficiency of people and the functioning of society as a whole.

DeepSeek has improved the global AI industry ecosystem, driven the explosion of AI applications in China, and encouraged global capital markets to revalue the assets of Chinese tech companies. Meanwhile, more and more Chinese tech companies are rocking the world.

 

How Should Entrepreneurs Seize the Opportunities of AI?

How should entrepreneurs seize the growth opportunities in the AI era? Most importantly, entrepreneurs need to enhance their knowledge of AI and improve their AI leadership. Entrepreneurs need to think ahead to gain insights into AI trends and technology characteristics, and explore ways to integrate AI into the industries in which we operate. Businesses should begin to develop an AI strategy and integrate it into their core strategy and overall objectives. Both technology-based companies and traditional industries such as manufacturing and services can use AI to improve productivity, reduce costs and increase efficiency.