China is rapidly becoming a center of innovation activity, and spurring innovation is one of the top priorities in the Chinese government’s latest five-year plan. This policy initiative is creating local champions that are taking market share from multinational corporations operating in China. They’re also becoming powerful competitors on the international stage. But progress varies across industries, and as a result, we still see few breakthrough ideas emerging from China.

In this podcast, Nick Leung, Managing Partner of McKinsey’s Greater China Practice, talks to Gordon Orr and Erik Roth about China’s ability to innovate. Gordon is the Chairman of Asia for McKinsey, and is based in Shanghai. Erik is a Partner in Shanghai who leads the Global Innovation Practice.