China to become global powerhouse in tech, pharma: IMD

China to become global powerhouse in tech, pharma: IMD
# 17 February 2024 05:31 (UTC +04:00)

China is becoming a global powerhouse in tech and pharmaceuticals, according to a new indicator released by the Switzerland-based International Institute for Management Development (IMD), APA reports.

The IMD launched its inaugural China Company Transformation Indicator (CCTI) earlier this month, focusing on technology, pharmaceuticals and apparel.

It found that internet technology firms still dominate China's technological sector, with Baidu, Alibaba and Tencent among the top five, alongside JD.com and NetEase.

IMD China's CEO Mark Greeven said in a video interview with Xinhua that three hard tech companies have also secured their place among the top 10, including semiconductor giant SMIC, computer maker Lenovo and global security technology leader Hikvision.

Meanwhile, China's hidden technology champions are likely to become global contenders in the future, said Greeven, who directed the CCTI research.

The IMD indicator also highlighted a dynamic interplay between foreign multinational corporations and innovative national companies in the pharmaceutical sector, currently led by big-name companies like Pfizer, Roche, AstraZeneca, and the emerging Chinese company Hengrui Pharmaceuticals.

Likewise, automotive businesses like BYD and new energy and battery company CATL are globalizing, he said.

"Innovation is the name of the game. All the top performers have been or are investing in innovation for the future," he said.

According to the authors, the indicator is designed to provide an objective, data-driven assessment of how well companies are faring in the Chinese market, and their readiness to transform and thrive in the long-term.

An indicator focusing on the automotive, new materials and food and beverage sectors is set to be published later this year.

Greeven said the Year of the Dragon will be a "roaring year" for the Chinese economy, given the growth of 4 or 5 percent in real estate and exports, which are traditional drivers of China's economic growth.

IMD is an independent academic institute based in Lausanne, Switzerland, and also in Singapore. It also opened a hub in Shenzhen in January last year.

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