As the world faces growing uncertainties in trade and geopolitics, China remains a critical driver of global innovation and economic growth, said Prof. Francisco Veloso, Dean of INSEAD, one of the world's top business schools founded in Europe.

In a recent exclusive interview with Xinhua, Veloso, who came to Beijing for closer cooperation with leading Chinese universities, highlighted the dynamism of China's innovation landscape, describing it as a powerful force that sustains its economy and attracts foreign investment.

"China has an incredible history of innovation, evolving across different periods and in diverse ways," said Veloso. One significant development has been the combination of the accumulation of innovation capabilities over time with the rapid adoption of digital technologies, he said.

When the strong government support for talent and technological advancement comes in, China has created "an avalanche of innovation" that is now propelling China toward the cutting edge of global innovation, Veloso observed.

Now China is pushing the boundaries of innovation across multiple sectors, including electric vehicles, batteries, renewable energy, artificial intelligence (AI), e-commerce, and fintech, he said.

He also attributed this innovation push to factors including a robust infrastructure that China has been building in the past decades, a large and competitive domestic market, strong manufacturing capabilities, and a growing pool of highly skilled talent.

Veloso sees the prospects of China's economy very positively, as he believes the innovation ecosystem formed in China's innovation hubs is gaining significant momentum and will continue to grow in a self-sustaining way.

"In innovation hubs like Shenzhen and Hangzhou, you see strong firms, local talent, and venture capital coming together to build momentum, just as what happened in Silicon Valley and Route 128 in Boston," he said. Additionally, these innovation engines not only vitalize the regions where they are situated, but also benefit the entire country as well as the world.

As a professor focusing on technological innovation studies, Veloso chose China as one of the subjects of his research, visiting the country more than ten times to understand the importance of collaboration in innovation. He found that many leading multinationals established research facilities in China, and some of their patents co-developed in China have proven to be the most valuable, highlighting the power of global collaboration.

Despite global economic headwinds, Veloso remains confident that China will continue to draw foreign investment. As the transition from high-speed to high-quality development becomes clearer and more stable, foreign companies are expected to accelerate their investment in China.

He also emphasized the importance of China continuing to connect to the world through its talents. During Veloso's recent trip to China, an agenda item was to renew INSEAD's cooperation with the prestigious Tsinghua University on an executive MBA program.

"At INSEAD, we have 80 nationalities, and every year we have between 50 and 100 Chinese students. These individuals become crucial conduits for investment and business relationships because they possess a deep understanding of both the Chinese market and international dynamics," said Veloso.

Veloso sees growing potential for Europe and China to work more closely in high-tech and innovation domains, highlighting several practical ways to deepen cooperation, including joint research projects, entrepreneurial exchange, and talent mobility across the two regions.

"It's crucial to identify a few areas where that collaboration could be explored in a way that benefits both sides," Veloso said, suggesting joint programs in areas of shared interests and concerns, for example, climate change and aging populations.

He called for Europe-China cooperation in renewable energies, including electric vehicles, wind, and solar power. He also proposed cooperation in AI-empowered public goods, especially in applying AI to support underprivileged communities.

Looking ahead, Veloso believes that China remains an important engine of the world's economic growth, while acknowledging challenges such as demographic pressures and concerns about consumer confidence.

"Europe wants a vibrant China. We all want China to be growing, because that benefits everyone," Veloso said.