China’s economic growth, increasingly driven by emerging technologies such as artificial intelligence, electric vehicles, and clean energy, is reshaping supply chains and sustaining regional prosperity across Asia, according to economists gathered for the 2026 Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group in Bangkok.

For decades, China’s economic expansion was characterized by rapid industrialization, transforming the nation into a global manufacturing powerhouse that fundamentally altered global production, trade, and consumption patterns.

Today, the country is undergoing another profound shift, moving toward an innovation-driven model anchored by algorithms, artificial intelligence, and next-generation technologies. This technological evolution is unfolding across much of Asia, where the region remains one of the world’s fastest-growing despite mounting global economic pressures.

Discussions at the Bangkok meetings underscored that technology investment and evolving supply chains are poised to drive the next phase of regional growth.

“Upside outcomes are possible if AI-related investment proves more persistent and productivity gains materialize faster than expected,” said Krishna Srinivasan, director of the IMF Asia and Pacific Department.

China remains central to this regional dynamic. The IMF forecasts that China’s economy will grow by 4.5 percent this year, a figure broadly in line with government targets and well above the global average.

However, the significance of this growth extends far beyond headline figures. China’s vast domestic market and advancing technological capabilities are creating new opportunities for trade and investment, particularly in Southeast Asia.

“China is leading it on many fronts. Obviously, in terms of the EV, solar PV, we’re benefiting a lot. The question now is how do you attract investment that can bring in new technology in all of these sectors and then make it easy for pledges of investment to translate into real investment,” said Kwanpadh Suddhi-Dhamakit, senior country officer in the World Bank’s Thailand office.

In Thailand, Chinese enterprises are expanding their investments in manufacturing, electric vehicles, and clean energy. Across Southeast Asia, supply chains are being reconfigured as new industries emerge and economic ties evolve beyond traditional trade paradigms.

Having already established itself as a major force in emerging technologies, China’s economic influence is expected to deepen as these advancements reshape global industries and investment flows. As markets shift, trade relationships are redrawn, and the rules of economic competition evolve.

The world, which once looked to China primarily as its factory, is increasingly looking to the country as a vital source of innovation — a shift that could redefine far more than just China’s own economic future.

He Lifeng, a member of the Political Bureau of the Communist Party of China Central Committee and director of the Office of the Central Commission for Financial and Economic Affairs, met with Ray Dalio, founder of Bridgewater Associates, in Beijing on Wednesday. He said that with 2026 marking the first year of China’s 15th Five-Year Plan period (2026-2030), the Chinese economy has maintained good momentum characterized by continued innovation, optimization and sound growth.

Under the strategic consensus of the two heads of state, China-U.S. economic and trade consultations have produced a series of mutually beneficial, balanced and positive outcomes, which are conducive to the stability and development of both countries and the global economy, He said.

Dalio expressed optimism about China’s economic development prospects and opportunities, and said he is willing to continue playing an active role in advancing U.S.-China economic and trade cooperation