BOAO, China - Propelled by domestic innovation, China is assuming technological leadership globally, transitioning beyond its role as the world's factory, Denis Depoux, global managing director at Roland Berger, a Munich-based consultancy, said on Wednesday.

The vast scale of China's market has played a pivotal role in this shift, allowing companies to test and upgrade products rapidly, said Depoux, who is attending the Boao Forum for Asia annual conference in south China's Hainan province.

"China is unique in the speed at which new technologies are adopted. Even a small pilot project can reach millions of consumers or hundreds of companies, enabling fast-track innovation," Depoux said.

The global economic slowdown, compounded by weakening trade, creates a more challenging environment for China's economy. However, Depoux refutes claims of China's "economic collapse."

The absolute value of China's economy remains strong, offering opportunities for both domestic and foreign companies, he noted.

"The Chinese economy has evolved over the past few decades," Depoux said, referring to the country's transition from a manufacturing hub to a global technological player. "China has invested heavily in R&D, and while its companies are still focused largely on the domestic market, the next step is for them to expand globally -- not just through exports but by creating internationally recognized brands."

To transition from a "Made in China" model to a "Designed in China" model, companies must invest abroad, create jobs and contribute to the economies of their host countries, he added.

China now leads the world in the number of patents for new technologies, driven by both consumer demand for advanced products and companies' efforts to improve productivity, Depoux said.

"Chinese consumers and companies are tech-savvy, with a strong appetite for innovation," Depoux said, adding that these factors make China an attractive market for foreign firms seeking new and tech-driven opportunities.

Although geopolitical tensions and supply chain disruptions have raised concerns about the future of globalization, Depoux remains optimistic, asserting, "Globalization continues, but in a new form."

"The old model, which concentrated capital, resources and labor, no longer holds," Depoux said, adding that a new paradigm, one that emphasizes more on carbon footprints and overseas production, is taking shape instead.

Depoux expressed concern about protectionism, warning that tariffs and restrictive trade policies could harm global supply chains and economic efficiency.

"Globalization has shown us that efficient supply chains, driven by comparative advantages, create prosperity," he said. "Protectionism only hampers this process. We need to fend it off."