A new report by a global consultancy firm has trumpeted the key growth engines of industrial modernization and technological innovation which are expected to feature prominently in China's 15th Five-Year Plan (2026-30).

Although China is still facing deflationary pressure and domestic competition, the Roland Berger consultancy has described the upside of such a situation as being the resilience, speed, agility and fighting spirit of Chinese companies.

According to the report an increasing number of China's private companies are making an impact internationally, with more breakthroughs expected across a diverse range of sectors, ranging from semiconductors and artificial intelligence to biotech, humanoid robots and hydrogen energy.

Improved productivity and more added value from this global activity would eventually translate into higher GDP per capita and higher disposal income to help lift domestic consumption.

The report noted that China's commitment to industrial modernization has already yielded substantial returns. The nation accounts for nearly 30 percent of the total global manufacturing output, maintaining its position as the world's largest manufacturing powerhouse.

Denis Depoux, global managing director of Roland Berger, said China's path to high-quality development represents a deliberate and necessary transformation, and requires continuous effort and patience.

He noted the need for a comprehensive strategy that shifts from "volume" to "value" through increasing productivity and moving up the global value chain, embracing AI to overcome productivity barriers, while simultaneously boosting domestic consumption by strengthening the social safety net to unlock household confidence.

Depoux said this must be coupled with unleashing private sector innovation through better capital allocation, and pursuing sophisticated globalization strategies where Chinese companies create tangible local value abroad to mitigate geopolitical tensions.

fanfeifei@chinadaily.com.cn