KPMG has underscored China's economic resilience in the face of geopolitical challenges, highlighting the role of technological advancements such as artificial intelligence (AI) and 5G as pivotal elements for sustained growth. Norbert Meyring, the head of Automotive and Industrial Manufacturing for the ASPAC Region at KPMG, articulated these sentiments while attending this year's World Economic Forum (WEF) in Tianjin.

Meyring noted that China's embrace of emerging technologies, particularly in AI, positions the nation to drive significant and sustainable economic growth despite external pressures. He emphasized that over half of the global AI patents are filed in China, which reflects the country's strategic pivot towards a technology-driven growth model.

The growth trajectory is supported by strong economic policies and advancements within the manufacturing sector. Meyring pointed out that China is currently at the forefront of various technological fields including speech recognition, image processing, intelligent manufacturing, and autonomous driving.

China's robust economic fundamentals, alongside its leadership in industrial scale and infrastructure development, enable it to leverage AI and smart manufacturing as transformative growth engines. Notably, more than 4 million 5G base stations have been deployed in 2024 alone, marking a critical step in empowering AI capabilities and fostering the development of intelligent chips.

Despite ongoing global geopolitical uncertainties, China's push towards industrial digitization and AI innovation is poised to facilitate sustainable, long-term economic expansion. Meyring highlighted that the modern manufacturing sector is witnessing a substantial uplift with the emergence of smart factories, which enhance productivity in areas such as electronics, electric vehicles, and robotics.

The automotive sector is also evolving, experiencing cost reductions driven by scale in autonomous vehicle production and smart logistics. Additionally, AI-optimized renewable energy systems are transforming the green technology sector, further illustrating the extensive impact of technological advancements.

These rapid advancements in various sectors are set to significantly alter the global industrial landscape. As China accelerates the adoption of smart manufacturing and green technologies, it is likely to lower costs, establish new efficiency benchmarks, and influence the direction of global supply chains towards tech-integrated production.

Meyring suggested that in order to navigate these technological shifts, countries could prioritize cooperation in three key areas. Firstly, the establishment of joint research and development frameworks could facilitate collaborative projects focused on ethical considerations in quantum and AI technology.

Secondly, fostering talent circulation through visa pathways for researchers and cross-border tech apprenticeships would enhance skill sharing. Finally, developing bridges for small and medium-sized enterprises could enable joint funding ventures for green technology and AI startups, particularly in emerging markets.

China's stable manufacturing supply chain plays a vital role in maintaining resilience amid external uncertainties. As trade tensions escalate and global supply chains face disruptions, China's advanced infrastructure and skilled workforce provide predictability and reliability for multinational companies seeking continuity in essential goods, including electronics and green technology components.