Intense domestic competition within China is a primary driver of its companies' global competitiveness, according to Joe Ngai, Chairman of McKinsey's China region.
Ngai stated that Chinese companies are more frequently put out of business by domestic rivals than by Western competitors. This internal struggle for survival forces companies to become highly competitive, a trait that extends to their operations internationally. "More Chinese companies are put out of business by other Chinese companies. Chinese companies are not put out of business because of Western companies, so this whole competition is not, from a Chinese guy's mind, like a US-China competition. It’s more ‘how do I survive this gym?’ because it's damn hard to keep staying alive at home," Ngai explained in an interview with Maura Fogarty for BBC News.
His observations are based on over 25 years of experience advising senior management at both Chinese and multinational corporations operating in the region. Ngai has authored numerous reports and books on China's economic landscape, earning recognition from publications like Forbes China and Bloomberg.
Ngai also touched upon the development of artificial intelligence and managing tensions with US competitors, though the primary focus of his analysis was the impact of internal market dynamics on Chinese businesses. The interview was produced by the Asia Business team and is part of The Interview series, which features conversations with influential global figures.