At the 2025 World Economic Forum in Davos, Joe Ngai, chairman of McKinsey Greater China, addressed global business leaders on the mounting impact of geopolitical tensions on the world economy.
Ngai pointed out that increasing geopolitical uncertainties are fueling significant volatility in global markets. He highlighted that trade barriers and tariffs are reshaping the global trade landscape, leading to a restructuring that businesses must navigate carefully.
"Companies need to be prepared for a world of heightened volatility and uncertainty," Ngai stated. "The traditional models of global trade are being challenged, and we are witnessing a shift that requires adaptation and resilience from businesses worldwide."
Despite these challenges, Ngai emphasized China's robust economic growth and its expanding influence on the global stage. He noted that China's continued development offers opportunities amidst the uncertainties.
"China's economy remains a significant driver of global growth," he said. "Its increasing influence presents both challenges and opportunities for international businesses."
Ngai urged companies to stay agile and informed, adapting to the evolving economic landscape. He suggested that businesses invest in understanding regional dynamics and geopolitical developments to make strategic decisions.
The forum attendees engaged in discussions on how to navigate the complexities of the current economic environment, focusing on collaboration and innovation as key strategies for success.
Reference(s):
McKinsey China: Businesses prepared for volatility and uncertainty
cgtn.com
