McKinsey partner sees China as most competitive market for both domestic, foreign firms

The Chinese market is the most competitive environment for both domestic and foreign companies as the country continues its opening up and economic reform, said Joe Ngai, chairman of management consulting firm McKinsey & Company in Greater China.

Ngai said that foreign companies are actively keeping up with China's steps in deepening reform, adding that significantly, more Chinese companies are also going abroad and transforming themselves into multinational companies.

"I think China is definitely the most competitive environment anywhere globally. Right now, I think we're squarely in the medium-proof lane, and that's what we all have to get used to. The CEOs all around, they all say, 'Look, this environment, we're getting used to it, and we're doing bunch of things the right way.' So the first one is, we get used to this environment," he said in a recent interview in Beijing.

"Second, I think that basically I've seen more Chinese companies who want to go overseas than I've ever witnessed before, and I think that it's really a phenomenon of the times. I think the Chinese companies, for the longest time, we were the 'factory of the world'; we manufactured here, and we export to the rest of the world. And I think there's a big difference between being the 'factory of the world' and a multinational company. I think Chinese companies right now, they want to go abroad, they want to become multinational companies. I think that's a big change in there," Ngai added.

According to the chairman, multinational companies operating in China are reevaluating how to best invest in the country.

"I think that they have enjoyed 20 years of unprecedented growth and prosperity. So, I do think the multinationals, for lots of them, they are recalibrating China. They're thinking about what is China is going to mean for us as a global company in the next 10 years, and am I going to invest more money in China? How am I going to transform my business? The conclusion is that we ought to get better in our operations in China, because if we don't do that, we will slowly become irrelevant, right, in the market. And I think that that includes the speed, the localization, the talent pool, the digital transformation, of the above," said Ngai.

At the same time, he shared the secrets to staying competitive in the most competitive market as a multinational.

"For multinationals, this is the market where they face the fiercest local competition. They face the fiercest price competition. And they face the most rapid innovation cycle that they can see anywhere else. Product innovation in China is three times faster than anywhere they've seen, usually, in their home markets. So, what do they need to do? Just like any other Chinese company, you have to get faster, better, cheaper, and close to the market. There's only one formula, and that formula is not any different between a multinational company or a low company. And I think that they all face the same context. So I do think that if they can do it well, they can succeed anywhere," he said.

McKinsey partner sees China as most competitive market for both domestic, foreign firms

McKinsey partner sees China as most competitive market for both domestic, foreign firms

As the Qingming Festival approaches this Friday, various traditional folk activities have been held across China, celebrating the rich cultural heritage of the occasion.

With a 2,500-year history, Qingming Festival, or the Festival of Pure Brightness, observed in early April, uniquely combines ancestral worship with the celebration of spring. Falling on the 15th day after the spring equinox, this ritual-rich observance reflects China's enduring values of ancestral veneration and inspires deep introspection about what gives life meaning.

In Sijia Village, Huayin City, northwest China’s Shaanxi Province, a unique swing festival is held to mark the occasion. Eighteen different types of traditional swings, such as the spinning wheel swing, the Bagua swing reminiscent of a rotating carousel, and the balance swing designed for two people, have attracted many visitors.

Historically, Sijia Village served as a military post guarding the strategic Tongguan pass, a former mountain pass and fortress located south of the confluence of the Wei and Yellow Rivers. The swing tradition in the village has its origins in military training exercises like climbing and river crossing. The local swing culture further developed as regional trade flourished, eventually evolving into the "swing festival" that continues today.

"It's very exciting and tests your skill, endurance, and most importantly, your arm strength. You need to maintain balance," said Qu Xiangyang, a visitor.

In Rudong County, Nantong City, east China's Jiangsu Province, another traditional Qingming activity takes place - kite flying.

Flying kites as a way of making wishes is an age-old Qingming custom in this region. As a result, the Qingming Festival in Nantong is also known as the "Kite Festival."

The local Banyao whistling kite making skills is listed as one of the first national intangible cultural heritage items.

According to a folk culture expert, people traditionally write the names of diseases or misfortunes on paper, attach it to a kite, and release it into the sky. This practice is believed to drive away illness and disaster, while also serving as a way to make wishes.

In south China's Guangdong Province, a large tug-of-war competition is underway in Maoming City. Teams from different towns and streets are competing, attracting many locals to cheer on their teams.

Tug-of-war, which originated during the late Spring and Autumn period (770 BC - 476 BC), became part of Qingming customs during the Tang Dynasty (618-907). Emperor Xuanzong of the Tang Dynasty once organized large-scale tug-of-war competitions for the festival.

"Tug-of-war became very popular in the Tang Dynasty, even emerging as the national sport. It originated in the Jingchu region and later spread across the country. In ancient Lingnan (Southern China), tug-of-war games were a common tradition. Through these events, people seek to pray for peace, prosperity, and abundant harvests," said Yao Guojun, vice dean of the College of Arts and Law, Guangdong University of Petrochemical Technology.

Traditional folk activities held for Qingming Festival