Against the backdrop of a slowing global economy, China has been shifting its economic focus towards domestic growth and harnessing a ‘dual circulation’ development model in which domestic demand plays a dominant role, while remaining open to the international economy. KPMG China continues to be optimistic about China’s economic future while growing our business in China in an effort to contribute to high-quality development.
2024 marked the 75th anniversary of the founding of the People’s Republic of China, and it was also a crucial year for achieving the objectives and tasks laid down in the 14th Five-Year Plan. Recently, new guidance and agendas have been proposed for innovative development to meet the needs of the new era. Against this backdrop, KPMG China will unswervingly follow the national development strategy, maintain the highest service quality, and continue to strengthen our expertise and professional practices, with a view to contributing to the high-quality development of the country.
Keeping pace with the times and performing our role in advising the government
Sharing cutting-edge insights and unlocking new opportunities through collaboration
As a leading professional services firm, KPMG China actively leverages its strength in audit, tax and advisory to conduct industry research and deliver industrial and strategic insights, with the goal of facilitating industrial upgrading and sharing development opportunities.
Strengthening integrity education to solidify trust
In order to implement President Xi Jinping’s important instructions for the public accounting profession, which calls for us to ‘adhere to the theme of serving national construction and the priority of integrity -building’, and further strengthen the disciplinary awareness of the firm's CPC members, KPMG China's local Party committees organised a series of Party-themed activities to help the firm's CPC members cultivate a stronger sense of Party discipline. These activities included teaching sessions featuring negative examples to improve trainees’ awareness, so that they can provide professional services in full compliance with laws and regulations. These sessions provided robust support for our efforts to achieve the firm's high-quality development goal, while also showcasing KPMG's Value of acting with ‘integrity’ in the new era.
Helping enterprises go global and meet international challenges
With the acceleration of global economic integration and the normalisation of cross-border investment and trade, going global has become a strategic imperative for enterprises to enter international markets, drive innovation and achieve sustainable growth. However, amid the complex cross-border regulatory environment, the ever-changing geopolitical landscape, and challenges around cultural differences and compliance, Chinese enterprises face many uncertainties in their expansion into the global market.
By leveraging our global network and resources, KPMG China is committed to providing enterprises with comprehensive overseas services, ranging from market admission analysis and tax planning to risk management, with the aim of strengthening enterprises' global presence, helping them grasp opportunities in the global market and achieve sustainable growth. Over the past year, KPMG China has helped enterprises go global through the following measures:
• Special seminars: We held several special seminars focusing on going global, with a number of foreign partners sharing their insights into how Chinese enterprises go global as well as how to attract foreign investment in a more efficient manner.
• A high-quality global expansion forum: The firm held a high-quality global expansion forum, gathering industry leaders, government representatives, experts and scholars to discuss global market trends and cooperation opportunities, and promote resource sharing, cooperation and communication.
• Going global-themed reports: We published multiple in-depth and forward-looking themed reports to provide enterprises with industry insights and strategic guidance for overseas expansion, covering market trends, policy interpretation and case analysis.
Strengthening our presence in key economic regions to facilitate future growth
Amid China’s continuous reform and development, KPMG China has set up offices in more than 30 cities in China, and the firm has more than 13,000 employees. In 2024, in response to the national strategy of ‘coordinated regional development’, KPMG China adjusted and optimised its regional presence, with a view to better serving the development of state-level economic zones and key regions:
• In March 2024, KPMG Campus (KAMPUS), KPMG China's new office in the Shanghai Hongqiao International Central Business District, officially opened. The establishment of the new office is a key step in KPMG China's regional development strategy. By forming a ‘dual engine’ structure with our existing office at Plaza 66 Tower II, KAMPUS will become a core hub for us to connect with different regions across the country. It will also serve as a national talent centre and regional innovation hub, facilitating our effort to better meet client needs and pursue business development.
• During the Hainan Consumer Expo, KPMG China's Hainan office officially moved to China Merchants Tower in Haikou, marking a new milestone in our regional development. The relocation, which took place during a period when Hainan was accelerating its Free Trade Port programme, represented a significant step in our effort to enhance our presence in Hainan. Through this move, KPMG China will consolidate regional resources to expand our workforce, business scope and office space, enabling us to provide more comprehensive services to Hainan and the rest of the country.
Driving change and growth through technological innovation
Technological innovation is driving the transition of China’s growth engine, and the country’s economic development is presenting critical and strategic opportunities. In the process of China’s pursuit of high-quality development, new industries, new business models and new growth drivers are emerging, accelerating the construction of new quality productive forces. As an industry leader, KPMG China is actively driving business and technological innovation to help clients improve their competitiveness.
KPMG China has cultivated a trusted professional team that is dedicated to promoting digital transformation and driving the development of China's technological innovation ecosystem. Our Digital Transformation team is committed to constructing business and technological ecosystems, with the goal of helping Chinese enterprises unleash the power of digitalisation, develop competitive advantages and secure a winning position amid global industrial restructuring.
Empowering industrial upgrading through AI
With the transformation of technology reshaping core competitiveness across industries, AI has become a key component of KPMG’s Global Strategy 3.0. KPMG China is fully committed to developing its proprietary AI capabilities. With inclusive AI as its target, KPMG is promoting a top-level design that is market-, deliverable- and internal-oriented, starting from internal applications and delivery model transformation, and adopting a gradual and steady approach in promoting external market opportunities. Going forward, we will prioritise low-risk, high-yield AI applications to improve efficiency, promote innovation and achieve excellence.
Against this backdrop, KPMG China and the ZGC Industry Institute jointly released the ‘Prospects for the global transformation of artificial intelligence (2023)’ report, which represents the product of in-depth industry research and expert interviews conducted by both parties. This report points out 10 major trends in the future development of the AI industry based on observations about China's and the world’s AI development and markets, with in-depth analysis of each trend and their core drivers, and it provides insights for the AI industry on how to anchor opportunities and address challenges.
Establishing strong partnerships to embrace the digital future
Over the years, KPMG China has established long-term strategic partnerships with well-known technology companies at home and abroad, including Microsoft, IBM China, Tencent, Kingdee and Laiye. In the face of current technological disruptions, KPMG China is working with our partners to relentlessly push the boundaries of innovation and integrate digital technologies, creating new opportunities for our clients through intelligent and interconnected solutions.
Organising the 2024 Global Tech Innovator China Competition to promote the development of science and technology innovation ecosystems
KPMG China pays close attention to the development of innovative technologies, and strives to provide opportunities for technology leaders across various sectors to share resources and services, with a view to supporting the growth of innovative Chinese technology enterprises. On 14 August 2024, we successfully held the final round of the 2024 Global Tech Innovator China Competition. The event attracted a number of technology start-ups and future technology giants, showcasing the strength and vitality of China's technological innovation.
“KPMG China has taken practical actions to demonstrate its commitment to corporate social responsibility. Going forward, we will continue to work with our people, clients and communities to actively explore, pilot and scale the coverage of our social responsibility efforts, with the goal of contributing to a better society through innovation and actions. “
At KPMG, we are committed to making a positive impact on society through our professional skills and volunteer services. In line with the KPMG Value ‘For Better’, we support our communities and rural revitalisation initiatives, making use of our resources and skills to innovate and improve how we address society’s current needs.
Corporate Social Responsibility (CSR) strategy
Based on our strengths and our communities’ actual needs, KPMG China has developed a CSR strategy that aligns with national policies and focuses on three critical areas: Advancing Sustainability, Lifelong Learning and Promoting Inclusive Development. We also cooperate with non-profit organisations (NPOs) to engage in social responsibility campaigns, and harness our professional capabilities, resources and passion to narrow inequality, tackle climate challenges and build trust within our communities.
At KPMG China, we encourage our people to engage in CSR initiatives through volunteering services, contribute to our communities and make a broader impact in society. Their concrete actions are a driving force to help achieve our three key CSR priorities, which can also help address some of the most urgent environmental and social issues, creating a sustainable future for our communities.
KPMG’s global 10by30 strategy
Economically empower 10 million disadvantaged young people by 2030 through education, employment and entrepreneurship.
Under this global strategy, KPMG China has adopted a needs-based approach to better serve disadvantaged young people. We have refined our Lifelong Learning educational empowerment strategy to focus on equipping disadvantaged youths with future-ready skills and school-to-work transition support, fostering resilience and competitiveness so they can be prepared for their future careers.
Future-ready skills training
Education empowers individuals and illuminates the path to a brighter future. Recognising the gap between urban and rural on digital literacy, environmental sustainability and other future-oriented skills, KPMG China has in recent years taken action to deliver innovative educational programmes that focus on future-ready knowledge and skills training.
We have so far rolled out more than eight key future-ready skills training programmes across the country, focusing on improving students’ essential skills and digital literacy. We are committed to introducing diversified and high-quality educational resources to disadvantaged areas, so that children in these areas have better access to a quality education and learning opportunities.
Improving digital literacy in rural education to bridge the gap between urban and rural areas
The digital revolution – as represented by big data and generative AI – is accelerating, and digital technologies are being further integrated into the economy and society. As a result, digitalisation is changing the future of work. Digital literacy has become essential for young people to succeed in the future.
To help improve public education in digital literacy and skills, and narrow the gap between the urban and rural, KPMG China launched the Pad for Hope Smart Classroom programme for rural schools. As part of this campaign, we have upgraded and renovated schools’ digital infrastructure and introduced digital courses, effectively improving the quality of rural education and contributing to the national rural revitalisation strategy. By the end of 2024, we had set up smart classrooms in 24 rural schools.
Lijiabao Rural School, located in Suizhong county, Huludao city, Liaoning province, received support from the programme in the spring semester of 2023. Li Qiuting, a teacher who has worked at the school for five years, said that in recent years, digital devices and online courses have become an integral part of teaching. Li explained that smart classrooms provide an entirely new set of tools and perspectives for teachers who are exploring how to improve students’ digital literacy and related skills.
At the hardware level, smart classrooms give teachers the resources needed to teach courses on information technology, giving children in rural areas access to the same courses offered to students in urban areas. For example, under the programme, students can use the facilities to transform their creative ideas and imagination into vivid visuals, which brings the classroom to life and improves the students’ communication and collaboration skills. At the software level, Lou Hongzhou, vice principal of the local school, said that the smart classrooms have helped transform the school’s educational philosophy, making it more digitalised, while also upgrading their teaching model. The programme has not only enriched the school’s teaching content and approaches with better quality and efficiency, but has also enhanced students’ enthusiasm and interest, improving their ability to learn independently, while helping them build confidence and develop a vision for the future.
Empowering young people to build a green future
At a time when educational reform and social development are closely intertwined, KPMG is committed to helping young people achieve integrated development and cultivating individuals who are capable of lifelong learning. To this end, we are developing innovative teaching models and curricula to help young people grow. In 2024, centred on the concept of ‘Caring for the planet’, we launched the ‘Youth Environmental Sustainability Curriculum’, which covers topics such as carbon emissions, the need to reduce our carbon footprint and how to practise green habits in our daily lives. This gives primary and secondary school students a better understanding of the importance of environmentally friendly behaviours and their impact on the planet.
The Yuexiu District Juvenile Rescue and Protection Centre (‘the Centre), located in Guangzhou, Guangdong province, aims to promote children’s integrated development through broadening their perspective and exposure to the world. In November 2024, while Guangzhou was experiencing unusually high temperatures, KPMG China’s ‘Youth Environmental Sustainability Curriculum - Helping the Earth Cool Down’ series was selected for inclusion in the ‘Small Eyes on the World’ themed event.
During the event, volunteers from KPMG China offered three themed activities for children in Yuexiu district, including educational courses, interactive sessions and craft classes, garnering the attention and active participation of a number of children. In addition to teaching the students new knowledge, the event also aimed to plant new ideas. The courses prepared the children to act as change-makers in their own homes, where they can teach their families about green habits.
Mr Zhu Jianbin, a social worker at the Centre, said, “Under the careful guidance of KPMG China’s volunteers, the children better understand global warming and carbon emissions reduction, and the concept of sustainable development has been planted in their hearts, where it will blossom and grow.” In the future, KPMG will continue to empower young people and support environmental protection initiatives, with the aim of creating a better tomorrow.
School-to-work transition
As an employer, KPMG understands the importance of comprehensive career planning education, and we have launched several school-to-work transition programmes to better support disadvantaged youths to have a smoother transition from school to work.
Leveraging our corporate resources and advantages, KPMG aims to provide students with systematic and tiered career development support – from early vocational education for youths to higher education – to help students thrive in their future careers.
Early vocational education lays the foundation for future career development
Providing vocational education to students during the early educational stage encourages them to explore their interests, values and abilities, and helps them better plan for their future careers. KPMG China has long supported Project WeCan in Hong Kong and the Business-School Partnership Programme (BSPP) launched by the Education Bureau of Hong Kong SAR, which provide secondary school students with work experience and job shadowing opportunities and help them build a preliminary understanding of the workplace. Also, we continue to provide steadfast support for the ‘Shishiyoudao’ migrant youth programme, which helps migrant youths gain a more comprehensive understanding of future job requirements, while improving their awareness and abilities in career planning.
In addition, KPMG China and its partners have jointly developed the Career 101 for Youth, which focuses on improving students’ understanding of work across three dimensions by introducing different types of jobs and emerging positions, and the relationship between personal interests and careers. Under a teaching model that pairs college students with KPMG volunteers, students gain a better understanding of the social impact of different careers and are able to improve their awareness and skills in career planning.
Employability skills training to facilitate the school-to-work transition
KPMG China is dedicated to cultivating employability skills of young people and providing them with professional training related to business operations, data management and finance. These professional skills can enhance their ability to manage workplace challenges. To improve their innovation and entrepreneurial skills, we also support related educational activities.
We prioritise the integration of theoretical knowledge and hands-on experience for higher education students, and have initiated several flagship projects including the GBA Financial Career Trainee Programme, the Career Up programme and the STEM is HER Future programme. These programmes aim to provide students with real-world exposure where they can apply what they have learned to deepen their understanding and employability skills, and effectively build up their soft skills such as communication, leadership and critical thinking.
In response to the national strategy for rural revitalisation, KPMG China continues to leverage our professional expertise and core competencies to tackle managerial and operational challenges of social organisations and rural cooperatives in underdeveloped areas. We aim to improve grassroots organisations’ financial management, organisational governance and project management capabilities by building their capacity in areas including financial operations planning, institutional governance and strategic planning, as well as talent cultivation and institutional empowerment services.
Empowering new rural collective economic organisations
Rural cooperatives bear essential responsibility for the construction, development and revitalisation of rural industries. China is currently making progress towards achieving the Long-Range Objectives Through the Year 2035, which include ‘deepening the reform of the rural collective property rights system and developing a new rural collective economy’.
As a traditional agricultural city in Guangdong province, Shaoguan has been focusing on developing a new rural collective economy in its most disadvantaged rural areas since 2023. This initiative is also part of Guangdong province’s ‘High-quality Development Project for Hundreds of Counties, Thousands of Towns and Myriads of Villages’ (‘the High-quality Development Project’). Under this new development philosophy, talent is the core driver of development. And as emphasised in the ‘Opinions on Accelerating the Revitalisation of Talent in Rural Areas’, the development of human capital in rural areas should be a top priority.
With the goal of facilitating the implementation of the High-quality Development Project, and helping rural cooperatives enhance their management systems and improve their tax knowledge, volunteer teams from KPMG have provided capacity-building training sessions – with the theme of ‘internal control and tax management’. These include key management personnel from 105 rural cooperatives and Agriculture and Rural Affairs Bureaus in Shaoguan.
Enhancing digitalisation in rural areas
Since 2022, KPMG China has supported the Running Water Plan initiated by the China Foundation for Rural Development as the capacity-building partner. Through specialised research and farmer household visits, we have gained insights into the financial difficulties faced by grassroots social organisations. We have also developed training courses and regularly held financial training sessions to help these organisations improve their financial operations. The programme has so far helped build capacity for over 100 underserved social organisations.
Over the past year, KPMG China’s volunteers travelled to Leshan city, Sichuan province and Zheng'an county in Zunyi city, Guizhou province, where they provided financial management and digital training to social organisations in underdeveloped areas. In addition to helping social organisations improve their financial accounting systems, KPMG volunteers provided professional guidance to the management personnel on how to address challenges in the adoption of digital solutions in their daily work by demonstrating and analysing various digitalisation scenarios. These training sessions effectively enhanced management’s understanding of digital solutions, improving their ability to harness digitalisation in different scenarios and promoting the development of digitalisation in rural areas.
Going forward, we will continue to focus on the development needs of rural areas, leverage our professional advantages and cooperate with NPOs and local governments to consistently empower rural areas, with the aim of bringing more opportunities and positive changes to these regions and supporting the rural revitalisation strategy.
At KPMG, we believe that serving the public good goes beyond financial support – it is the dedication and commitment of every volunteer that truly amplifies the impact. That is why we actively encourage our people to engage in volunteer services. Through our KPMG Community Day, each year, we provide our people with at least eight working hours to volunteer, which supports them to serve the public good with their expertise and passion.
Additionally, we established the Chairman’s Award to recognise outstanding individuals and teams who have demonstrated sustained commitment or made a significant impact to drive social or environmental change. Since its inception in 2007, a total of 223 individuals and teams have received this honour.
Compared to traditional volunteering models, KPMG has developed a skills-based volunteering model which utilises our people’s professional skills. Transforming core competencies such as finance, tax and risk management into practical drivers for social service opportunities creates a deep synergy between personal expertise and corporate social responsibility. With a focus on promoting inclusive development, our people take on the role of professional mentors and create tailored training courses for NPOs on financial management system optimisation and strengthening operational efficiency through digital tools and professional solutions which enhance the organisations’ operational sustainability.
Looking forward, KPMG China will continue to deepen its skills-based volunteer model by leveraging professional skills to support community development, using concrete actions to support communities, and ultimately striving to create positive change.
People story – Frank Wu
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