China is now the second-most influential country in the world in terms of soft power, second only to the United States, according to the 2025 Global Soft Power Index by Brand Finance.

In the past year, the Chinese nation as a brand has experienced notable growth across six of eight Soft Power pillars and in two-thirds of measured attributes. This growth highlights how improved perceptions across various economic, cultural and social metrics have driven China's soft power in the index rankings, while its "reputation" has also climbed to 27th place, up from 56th in 2021.

Brand Finance research highlights that business and trade attributes are key indicators of a nation's influence, reflecting economic strength, innovation, and integration into the worldwide market. China has held the top spot globally for "ease of doing business" since 2020, reflecting its sustained efforts to enhance its economic attractiveness and attract foreign investment.

In the 2025 Index, China ranks eighth for its "strong and stable economy", reflecting its growing economic influence. China has also ranked first for its "future growth potential" since 2022.

Positive perceptions of China's economic growth potential can be attributed mainly to initiatives such as the Belt and Road Initiative, which has played a pivotal role in creating new markets for Chinese companies and strengthening economic ties with participating countries, reflected in a 24-rank jump for its "good relations with other countries".

In terms of soft power, a nation's ability to engage in trade, attract investment, and contribute to global economic development is instrumental in shaping perceptions and enhancing its standing on the world stage.

Further, China's strategic investments in brand building have significantly enhanced the recognition and influence of its brands globally.

In 2025, China ranks fifth globally for its "products and brands the world loves". Its rise in this attribute is largely due to the growing recognition and performance of Chinese brands domestically and globally.

Over the past 17 years, the number of Chinese brands in the Brand Finance Global 500 has surged from 13 to 68, and their total brand value has increased by more than 23-fold to $1.4 trillion.

This jump in brand value reflects a shift from domestic dominance to global brand leadership, exemplified by the worldwide impact of Chinese brands such as TikTok. With over 1 billion monthly users, TikTok has transformed the global media landscape. Its global influence has likely contributed to China's improved performance in the media and communication pillar, climbing 20 ranks for being perceived as "easy to communicate with", and 13 ranks for having "trustworthy media".

Chinese brands are also at the forefront of global innovation. China has maintained its position as second in the world for being "advanced in technology and innovation" over the past three years. This progress is powered by the rise of tech giants such as Huawei, a leader in global telecommunications, and new-energy vehicle maker BYD, which is driving the rapid global shift toward electric vehicles.

Another example is the State Grid Corporation of China, which has emerged as a global leader through its pivotal role in the BRI. SGCC has strengthened China's overseas energy programs and bolstered its brand as a leader in energy innovation and sustainable development by developing and operating critical energy infrastructure projects across participating countries.

China has also made advancements in the people and values pillar; recording rank increases across several attributes. For example, China has risen 27 ranks for being perceived as "generous", 25 ranks for being "friendly", 15 ranks for being "fun", and 12 ranks for being "trustworthy", highlighting China's growing influence in this domain.

China has also risen six ranks for being considered a "great place to visit" and seven ranks for its "appealing lifestyle". These gains have helped China rise to seventh place in the culture and heritage pillar. They are closely aligned with the nation's broader soft power initiatives to present its cultural attractiveness and influence, and best present China's national brand to the world media. Such initiatives are expected to further enhance China's soft power in the coming years.

The author is chairman of Brand Finance, a London-based brand valuation consultancy. The views do not necessarily reflect those of China Daily.