China transforms from hardware manufacturing power to innovation-driven economy: business leaders

China is transforming from a major hardware manufacturing power into an innovation-driven economy, said business leaders attending the 2025 Summer Davos Forum Thursday in Tianjin, China.

At a session themed "China's Economy: Analysed" in the forum, guests agreed that China's advance in the fields of technology and intellectual property (IP) are bringing new opportunities for the world.

"China's a great innovator on the hardware side. I think what is actually the next version is give you on the software side and on the IP side," said Joseph Luc Ngai, chairman of the Greater China, McKinsey & Company.

Dr. Zhu Min, a member of the Senior Expert Advisory Committee of the China Center for International Economic Exchanges, said China's artificial intelligence (AI) industry is expected to usher in a new stage of growth which will benefit the whole world.

"I think the fundamental is China is going to lead AR+ wave. Not only for China but for whole world. So, be prepared. The big wave is coming. Brace for the new world. It will be excellent, [an] excellent new-tech world," he said.

Jin Keyu, a professor of Hong Kong University of Science and Technology, said the IP is an important engine driving innovation and creativity for companies.

"The ones that are most protected from trade wars and geopolitical uncertainties are those that have their own IP, R&D skill upstream. But the ones that suffer the most are the labor-intensive ones," she said.

Syensqo, a Belgian company and a leader in advanced materials and specialty chemicals, said they have already started introducing high-end technologies from China to many other parts of the world.

"Targeting other regions, other countries in Asia, but also in Europe and on-shoring the best available technology in China there," said Ilham Kadri, CEO of Syensqo.

The 2025 Summer Davos, or 16th Annual Meeting of the New Champions, concluded in Tianjin on Thursday. The event brought together over 1,700 leading figures from more than 90 countries and regions to explore how entrepreneurship and emerging technologies can unlock more dynamic and resilient economies.

China transforms from hardware manufacturing power to innovation-driven economy: business leaders

The U.S. Department of Defense plans to spend more than 10 billion dollars to purchase air defense and interceptor missiles, and several billion dollars more to purchase various other types of missiles, according to a Bloomberg report on Friday.

According to the report, documents drafted by the U.S. Department of Defense and submitted to the defense committees of both the Senate and the House of Representatives indicate that these funds will be used to procure 5.75 billion dollars’ worth of THAAD interceptor missiles and 5.57 billion dollars’ worth of Patriot missile segment enhancements. The procurement list also includes 1.9 billion dollars’ worth of Standard Missile-6 (SM-6) and 1.3 billion dollars' worth of Tomahawk cruise missiles, as well as 692 million dollars for the procurement of precision-strike missiles, which was used for the first time in the war with Iran.

The report said that as U.S. forces struck Iran and intercepted its drone and missile attacks against U.S. bases in the Middle East, concerns are rising about the weapons stockpiles. U.S. lawmakers, defense officials, and analysts have stated that the current US weapons stockpiles are at dangerously low levels.

CBS News, citing U.S. military and intelligence officials, reported earlier this month that the rapid depletion of U.S. air defense interceptors and precision-guided weapons during the U.S.-Iran conflict had raised concerns within the U.S. government.

Pentagon plans to spend over 10 bln dollars on missile purchase