The Shortlist: China reopens; the world watches and waits

McKinsey & Company

The Shortlist

FOUR OF OUR BEST NEW IDEAS

Curated by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities

Twice monthly, we bring you four new insights out of the dozens we publish that we think are worth a second glance from any business leader in any geography. In this edition, we look closely at China’s reopening, consumer interest in sustainability, and more. We hope you enjoy the read.

— Liz and Homayoun

Image of shapes fitting into a 3-D puzzle

What’s new

China is reopening. After locking down vast swathes of the country during its battle with COVID-19, the country suddenly reversed course. Now, the rest of the world is reckoning with the (potentially inflationary) effects as the country reopens. One thing is clear: in an increasingly multipolar world, China remains a powerful draw for multinational companies (MNCs). But MNCs will have to recalibrate the risks.

The McKinsey Global Institute has run the numbers. Check out The China imperative for multinational companies by Jonathan Woetzel , Joe Ngai , Jeongmin Seong , Kweilin Ellingrud , Nick Leung , Franck Le Deu , Sven Smit , and Peixi Wang.

Illustration of a green vegetation and blue water in the shape of a plastic water bottle

What’s now

From social media to casual chat, customers tend to be earnestly supportive of sustainability. But away from the scrutiny of their peers, will they actually pay more for a product that claims to be sustainable? According to an extensive new study by McKinsey and NielsenIQ, the short answer is yes—and that means a major growth opportunity for consumer-packaged-goods companies that understand the nuanced influence of environmental claims on customer purchase decisions.

For specific insights on how companies can advance ESG commitments while pursuing differentiated growth, read Consumers care about sustainability—and back it up with their wallets by Jordan Bar Am , Vinit Doshi, Anandi Malik, Steve Noble , and Sherry Frey.

Image of sunlight emerging through several skyscrapers

What’s next

Spare a thought for the world’s new CFOs. They used to have four functions reporting to them; now they have six. Often, they’re also on the hook for their companies’ digitization efforts. And, oh yeah, they still have to do old-fashioned budgeting, planning, and risk mitigation. It turns out that climbing the ladder to CFO was the easy part.

In Starting up as a new CFO, Ankur Agrawal , Michael Birshan , Christian Grube, and Andy West detail the seven mindsets that today’s new CFOs need.

Image of vegetation growing in a crack in the ground

What’s needed

The drumbeat is getting louder: net zero needs to happen. But recent generational shocks—including the pandemic and the war in Ukraine—have raised some tough questions. How can leaders keep their eyes on the net-zero prize? Our answer: go on offense. That means preserving existing business while also investing in future business, being laser focused on sustainable value pools, and forging creative new supply chain partnerships.

For more on why net zero doesn’t have to mean zero sum, check out Net zero: Next moves for CEOs, a recent episode of The McKinsey Podcast by Anna Moore and Humayun Tai .

We hope you’ve found this synthesis helpful. See you in two weeks with four more ideas from McKinsey.

McKinsey & Company

Follow our thinking

Share these insights

Did you enjoy this newsletter? Forward it to colleagues and friends so they can subscribe too. Was this issue forwarded to you? Sign up for it and sample our 40+ other free email subscriptions here.

Copyright © 2023 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007