Urbanization. Financial reform. Global competitiveness. Social development. Environmental sustainability. Examine any of these challenges facing the world’s second-largest economy and the signs are that China is facing a fundamental reworking of its development model to date. Where it could once generate stunning growth rates from a brute-force approach of export-led capital investment, the country’s task now is to master the hallmarks of a modern economy: replacing capital with productivity, encouraging domestic consumption for its expanding middle class, providing its people security and services in a safe urban setting, moving up the manufacturing value chain, and competing in a digital era.
In this video, experts from McKinsey’s Greater China office explore why China can no longer rely on old models for its future growth and discuss the opportunities and challenges that await as the country writes the next chapter of its remarkable development story.