This aerial photo taken on Nov. 12, 2023 shows the construction site of the underground neutrino observatory in Jiangmen, south China's Guangdong Province. (Photo by Liu Yuexiang/Xinhua)

The IMD indicators found that internet technology firms still dominate China's technological sector, with Baidu, Alibaba, and Tencent among the top five, alongside JD.com and NetEase. 

China is becoming a global powerhouse in tech and pharmaceuticals, according to a new indicator released by the Switzerland-based International Institute for Management Development (IMD).

The IMD launched its inaugural China Company Transformation Indicator (CCTI) earlier this month, focusing on technology, pharmaceuticals and apparel.

It found that internet technology firms still dominate China's technological sector, with Baidu, Alibaba and Tencent among the top five, alongside JD.com and NetEase.

IMD China's CEO Mark Greeven said in a video interview with Xinhua that three hard tech companies have also secured their place among the top 10, including semiconductor giant SMIC, computer maker Lenovo and global security technology leader Hikvision.

Meanwhile, China's hidden technology champions are likely to become global contenders in the future, said Greeven, who directed the CCTI research.

An aerial drone photo taken on June 4, 2023 shows a bullet train running through paddy fields in Zhongshan, south China's Guangdong Province. (Photo by Zhang Jianlai/Xinhua)

The IMD indicator also highlighted a dynamic interplay between foreign multinational corporations and innovative national companies in the pharmaceutical sector, currently led by big-name companies like Pfizer, Roche, AstraZeneca, and the emerging Chinese company Hengrui Pharmaceuticals.

Likewise, automotive businesses like BYD and new energy and battery company CATL are globalizing, he said.

"Innovation is the name of the game. All the top performers have been or are investing in innovation for the future," he said.

According to the authors, the indicator is designed to provide an objective, data-driven assessment of how well companies are faring in the Chinese market, and their readiness to transform and thrive in the long-term.

An unmanned aerial vehicle (UAV) carrying food package is seen at the Houhai area in Shenzhen, south China's Guangdong Province, Nov. 24, 2023. (Xinhua/Mao Siqian)

An indicator focusing on the automotive, new materials and food and beverage sectors is set to be published later this year.

Greeven said the Year of the Dragon will be a "roaring year" for the Chinese economy.

IMD is an independent academic institute based in Lausanne, Switzerland, and also in Singapore. It also opened a hub in Shenzhen in January last year.