Mainland China advanced in the global competitiveness ranking thanks to improvement in business and government efficiency while economic performance slid, a new study shows.

China climbed four places, from 16th to 12th, in this year’s IMD World Competitiveness Ranking, reaching its highest spot since 2022.

This advancement was supported by gains in productivity and efficiency, finance and the labour market on the business front as well as stronger business legislation and tax policies on the government front, according to a ranking published by the Swiss business school on Thursday.

Singapore topped the ranking this year, with Hong Kong climbing to second place and Switzerland slipping from first to third. Taiwan and the UAE rounded out the top five, while four EU countries and the US made up the rest of the top 10.

A nation’s competitiveness is especially important in the current context of rising global fragmentation and deteriorating geopolitical conditions, according to Arturo Bris, director of the IMD World Competitiveness Centre.

“Nations with their own tried and tested, credible institutions gain the advantage in this context because – as the international system ceases to serve so many national needs – business can carry on as usual,” he said.