Edward Tse says business leaders should spend quality time discussing this strategic issue because of its profound nature and implications

It’s now a common view that we are entering into a new world, one in which big shifts in international relationships, technology, trading patterns, comparative advantages of countries and businesses are taking place extremely fast. In this context, questions that we often encounter are: What will happen to China, how will its role evolve, and what implications will these phenomena have for businesses?

Views on China floated over the years are mixed. While some have promoted the “collapse” or “peaked” notion, others have asserted that “the 21st century will be China’s century”.

Against this background, on Jan 16, Canadian Prime Minister Mark Carney said he thinks we are entering into a “new world order” when he visited Beijing. And he deliberately spoke very slowly, putting every word clearly. He wanted to underscore that point with an exclamation mark.

Carney’s admission of the new reality was probably the first time that a Western political leader has openly admitted that this is the case. He made the point with China’s most senior political leader in Beijing. That sent a very strong message.

After several decades of continuously high economic growth, and rapid and intense nation-building, China has evolved itself into a new stage that the rest of the world has begun to recognize and acknowledge. Not only has it become an economic, manufacturing, trading, technological innovation and military powerhouse, it has eradicated absolute poverty and improved its environment significantly, among many major achievements. Importantly, the impact of its culture and civilization is also being felt increasingly across the world. And all of these have taken place over a couple of decades, with the pace accelerating over the past ten years.

Even more dramatically, these changes happened while the world entered into a period of heightened volatility, uncertainty and tensions.

In business, overseas multinational companies’ experience in China has greatly varied. Some have had a tough time, with some having either downsized their operations or withdrawn from the market. For others, abrupt external changes — often driven by geopolitical or other factors — artificially truncated their operations, either entirely or partially. On the other hand, there are also plenty of companies that have found the Chinese market to be very rewarding and have been doubling down on their investments.

All of these companies face a set of similar challenges amid a quickly changing global landscape. Chinese companies are becoming increasingly competitive, and many are very innovative, often with fast speed and high intensity. The Chinese government has also underscored the strategic criticality of achieving technological independence, requiring companies to localize their products and technology. Chinese companies are also intensifying their efforts to internationalize. They no longer merely export products but also ideas, innovations, knowledge, business models and capital. Their presence is increasingly felt across the world, especially in the Global South.

This trend is accelerating and China’s existence is being felt increasingly across the world, not only terrestrially but also in Earth’s orbit and perhaps, in due course, on the moon.

As I explained in my China Daily article, Tracing the Intrinsic Logic of Chinese Rejuvenation, published on Nov 11, 2025, there is a set of internal logic to China’s rejuvenation that is grounded in the Chinese people’s search for the nation’s modernity since around 200 years ago. The abrupt drop in China’s national strength since the 1800s had been dramatic, causing generations of Chinese elites to reflect upon how to rejuvenate the Chinese nation. This collective will has been a powerful driver of the rapid progress the country is now witnessing. All of this is taking place against the backdrop of China’s long history and rich culture and civilization as well as a political paradigm that encapsulates both collectivism and individualism.

Over the years, there have been various perspectives on the level of China’s resilience for continued growth. While ups and downs may continue to happen along the way, business decision-makers should bet on China’s ability to continue to grow and expand its overall capabilities in multiple dimensions, with an increasing impact globally.

Not only will China’s domestic market continue to expand, amid challenges and solutions, China’s global influence will grow further as more Chinese companies expand internationally. In addition to playing a key role in goods and information flows, China will also begin to offer an alternative method for international financial settlement, often in tandem with other major non-Western markets. As many Global South countries develop, inevitably they will decide, at various points in time, how they should develop their own industries. Before, the Western industrial development approach was the only option. Today, China’s development path has become a real alternative for many. And I believe more Global South countries will choose the Chinese path going forward, especially in manufacturing, supply chains and technology.

The emergence of Chinese businesses is changing the fundamentals of business dynamics. Chinese companies will continue to be very competitive and are likely to become more so over time. Across industries, more and more Chinese companies will define new price-value relationships, often with lower pricing for an equivalent set of product features. And more innovations will emerge.

However, global geopolitical dynamics will also evolve. Many jurisdictions are likely to increasingly welcome Chinese investments, but different jurisdictions will offer different requirements for such investments in accordance with their own situations.

On one hand, this will enable more international presence of Chinese companies; on the other hand, new relationships are likely to form between Chinese businesses and those of other national origins.

This fresh global picture will generate new patterns of structure, competitive conduct, and financial performance among many industries across the world. New industries will also emerge. With technology, especially artificial intelligence, new forms of organizations will also appear. What one sees today will not fully apply tomorrow.

The corporate world has responded in various ways to this new global picture. While a small percentage of senior executives recognize this shift and are preparing for this monumental change, most are not, or are not paying enough attention to it. And some would even dismiss any such possibility, often due to ideology and an inadequate level of understanding of the issue.

As we enter into a new world, China’s influence will be increasingly felt across the world. For businesses, no matter where their headquarters are located, they need to have a China strategy, which is no longer merely about how to do business in China or to use China only as a hub for supply chain but also about how to do business with China.

Business leaders should spend quality time discussing this strategic issue because of its profound nature and implications. Responses to this strategic challenge and opportunity will inevitably touch upon multiple dimensions of business, which requires time and meticulous planning to address. They won’t be trivial.

It seems that there is not enough of this kind of discussion going on in C-level offices or among corporate boards. Businesses should be conscious of such shifts and take real actions.

The author is founder and CEO of Gao Feng Advisory Co, a strategy and management consulting firm with roots in China.

The views do not necessarily reflect those of China Daily.