Businesses see China as the next frontier of technology, not just an exporter: McKinsey China

June 24, 2026 - 03:29

Joe Ngai, the China chairman for consulting firm McKinsey, says the country has evolved into what he calls a "factory for factories." Speaking to CNBC at the World Economic Forum in Dalian, Ngai explained that international companies are now coming to China not just to sell products, but to learn from its advanced manufacturing systems.

Ngai pointed to China's leadership in factory automation and robotics as the main draw. He noted that the country is now seen as the next frontier of technology, shifting away from its old reputation as a low-cost exporter. The shift means foreign firms are looking to adopt Chinese innovations in smart manufacturing and supply chain efficiency.

Ngai also identified rising hot spots within China's tech landscape, though he did not name specific cities or sectors in detail. The message is clear: China is no longer just a place to make goods cheaply. It has become a laboratory for the future of industrial technology, where businesses from around the world come to study and compete.