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China's innovation drive creates new opportunities for global businesses: German consultancy

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China's innovation drive creates new opportunities for global businesses: German consultancy

2026-04-04 22:22 Last Updated At:04-05 00:17

China's continued push for scientific and technological innovation, highlighted in its 15th Five-Year Plan (2026–2030), is accelerating the growth of industries of the future at home and creating broad opportunities for global companies seeking new sources of productivity and innovation, said Denis Depoux, global managing director of the Munich-based consultancy firm Roland Berger.

In a recent interview with China Media Group in south China's Hainan Province, Depoux noted that China's focus on advanced technologies such as AI is drawing strong investment from both the public and private sectors, providing fertile ground for industrial transformation and international business cooperation.

"This priority in the 15th Five-Year Plan means that there will be a lot of state investment and support, there will be a lot of private sector involvement, there will be a lot of capital flowing. Same goes for AI Plus. So the way to make AI not only as a breakthrough technology, but as something meaningful in production, in manufacturing, to improve productivity. So it's really building industries for the future. That's why multinationals are also investing in research, development, in innovation here in China to tap the innovation potential," he said.

As China advances its innovation-driven development strategy, Depoux noted that the integration of AI with the real economy is expected to become a key growth driver.

He pointed out that beyond breakthroughs in generative AI, the next stage will involve applying AI to the physical world, particularly in manufacturing and industrial production.

"AI Plus manufacturing is one thing I would look at. So far we've had this breakthrough in generative AI with DeepSeek and other models elsewhere in the world. That's all great, but that's handling text and numbers. The next frontier is handling the physical world, and that's very different, and even the technology underlying is actually different from the large language model, because it's not relying on language, it's relying on understanding the environment. And we talk a lot about humanoid robots, but actually, let's start with industrial robots and how AI can actually create an additional productivity revolution in industry. And that's going to happen here because this is a manufacturing country," he said

"The energy sector is another sector I would look at very carefully around advanced materials, around nuclear fusion as the next frontier that obviously will change the whole parameters of the economy. It's not only about fusion, it's also about green hydrogen and usage of green hydrogen. I think the biotech industry in China is probably where we might see the next DeepSeek moment. The next blockbuster might actually come from a Chinese innovative biotech company or pharmaceutical company and be scaled either by Chinese companies or by the global pharma. So that's what I would look at," said Depoux.

He also noted that these developing trends are reshaping the strategies of both Chinese and foreign enterprises, as they seek to adapt to new consumption patterns, upgrade service industries, and expand internationally.

"We are very committed to this market, to China as a market, simply because there is so much happening here. So when you think of the level of innovation, when you think of the new consumption scenarios, when you think of the boosting of the services economy, these are all areas where companies need to adjust. And companies, Chinese and multinationals alike, need to transform. For example, they need to adopt AI to boost their productivity or to better serve their clients. Chinese companies are all going abroad, and they want to tap more affluent market in Europe, in America, in the Middle East, elsewhere. This is what we as a management consulting firm, are helping them to transform to be able to do," said Depoux.

China's innovation drive creates new opportunities for global businesses: German consultancy

China's innovation drive creates new opportunities for global businesses: German consultancy

Farmers in India, a major agricultural producer and fertilizer importer, are raising concerns over fertilizer availability ahead of the planting season, as the escalating Middle East conflict and disruptions to shipping through the Strait of Hormuz put global supplies at risk.

The Middle East serves as both a vital energy hub and a major global fertilizer supplier, yet the ongoing U.S.-Israeli war with Iran has heightened risks of disruption to international supplies.

Chand Singh Yadav, a farmer in Haryana, a northern Indian state, said poor crop yields would be disastrous for the country and called on the government to ensure adequate supplies of fertilizers, agrochemicals and seeds to prevent a food crisis. "Without fertilizers, our crops will not grow well, and this would be disastrous for the entire country. If farmers cannot grow crops, people will not be able to buy food in the market. We urge the government to improve the supply system for fertilizers, agrochemicals and seeds to prevent the country and society as a whole from sliding into a food crisis," he said.

The Indian government is stepping up subsidies for farmers and optimizing fertilizer distribution and allocation to stabilize the supply. Prices have remained broadly stable, but demand is expected to surge ahead of the planting season, potentially exacerbating supply pressures.

"The current situation is worrying for us farmers. Spring sowing has not yet started, and the rainy season has not arrived. Fertilizer prices are temporarily stable, but in two months, demand for agricultural fertilizers will become pressing. Without fertilizers, it will be difficult to properly cultivate various types of crops. Urea and diammonium phosphate are especially critical. Crops can only grow normally when these fertilizers are applied. As these fertilizers are largely imported, if the conflict persists, supplies cannot be guaranteed," said Santosh Mishra, a farmer in India's eastern state of Odisha.

Escalating Middle East conflict strains India’s fertilizer supply

Escalating Middle East conflict strains India’s fertilizer supply

Escalating Middle East conflict strains India’s fertilizer supply

Escalating Middle East conflict strains India’s fertilizer supply

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