A new report from McKinsey Global Institute has noted China must become an innovation leader with renewed focus on the service sector and next-generation manufacturing if the country is to recover from its slowing economy. The report, titled “China’s New Industrial Revolution,” says that while Chinese companies have been investing in research and development (R&D) for years, they are now focusing more on services such as logistics, customer service, To increase innovation, the authors argue China must open up competition and enhance the productivity of the service sector while embracing new manufacturing technologies.
A new report from McKinsey Global Institute has noted China must become an innovation leader with renewed focus on the service sector and next-generation manufacturing if the country is to recover from its slowing economy. Continued improvements in the service and manufacturing sectors could contribute up to $2.2trillion to GDP by 2025, creating 24% of total GDP growth. To increase innovation, the authors argue China must open up competition and enhance the productivity of the service sector while embracing new manufacturing technologies.