1、Foresight 2025Roland Berger ChinaAnnual Trends ReportResilience is a new paradigm for China.It is calling for adaption of business model,operating model,management and decision-making systems.Deep transformation of the Chinese economy The Chinese economy is undergoing a profound transformation that
2、may last for a decade.It doesnt indicate a decade of decline,but suggests a period of volatility.The transformation towards new growth engines is crucial for China to shift from an labor&investment-driven growth model to an innovation&technology-led growth model,ensuring its long-term sustainability
3、 and resilience against global economic volatilities.China is currently in a critical transition phase.Traditional drivers of growthsuch as labor and capital competitiveness,permissive regulation,and planned economic boostsare gradually diminishing.Meanwhile,new growth engines,like industrial modern
4、ization,decarbonization,and sustained domestic demand and consumption,have yet to fully develop to drive the economy.Present deflationary pressures highlight structural issues.Despite Chinas rapid initial recovery from the pandemic,consumption and consumer confidence have remained fragile.Ongoing un
5、certainties around key challenges such as real estate and unemployment have dampened consumer confidence,and therefore spending.Weaker consumption,in turn,pushes businesses to cut production and decrease employment,potentially creating a vicious cycle that becomes increasingly difficult to reverse t
6、he longer it persists.Moreover,global factors such as rising geopolitical tensions,China-U.S.interest rate changes,and moderate global economic growth add additional layers of pressure on the Chinese economy.Navigating transformations with holistic approaches There is no need for excessive pessimism
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