At the 2025 World Economic Forum in Davos, Joe Ngai, chairman of McKinsey Greater China, addressed global business leaders on the rising geopolitical tensions and their impact on the world economy. Ngai emphasized that these tensions have fueled significant global uncertainty, prompting businesses worldwide to brace for volatility.
He predicted a substantial restructuring of the global trade landscape, driven by increasing trade barriers and tariffs. \"We are witnessing a pivotal moment in international trade,\" Ngai stated. \"Businesses must adapt to a new era where traditional trading patterns are being reshaped by geopolitical factors.\"
Despite these challenges, Ngai underscored the robust economic growth of the Chinese mainland and its expanding influence on the global stage. He highlighted China's commitment to innovation and its role as a stabilizing force amid global economic shifts. \"China continues to be a beacon of growth and opportunity,\" he noted. \"Its resilience and adaptability are key assets in navigating the uncertainties ahead.\"
Ngai called on global businesses to prepare for ongoing volatility by diversifying supply chains and investing in emerging markets. He also stressed the importance of collaboration and open dialogue to mitigate the impacts of geopolitical tensions. \"In times of uncertainty, partnership and understanding become even more critical,\" he said.
The insights from Ngai reflect a broader sentiment at Davos, where leaders are grappling with the complexities of a rapidly changing global landscape. As trade dynamics evolve, businesses and investors are closely monitoring developments to position themselves strategically for the future.
Reference(s):
McKinsey China: Businesses prepared for volatility and uncertainty
cgtn.com
