Out of 137 economies surveyed worldwide, theChinese mainland ranks 27th in terms of overallcompetitiveness while in innovation, it is "on parwith or even better than many advancedeconomies," the Geneva-based World EconomicForum said.
The Chinese mainland places between South Koreaand Iceland in the latest WEF Global CompetitivenessIndex, an annual ranking based on factors contributing to productivity and prosperity.
The mainland ranks highest among the BRICS group of five emerging markets and moves upto 27th, one place higher than in last year's assessment.
BRICS also includes Brazil, Russia, India and South Africa.
The Hong Kong Special Administrative Region moves up three spots to sixth place.
According to the index, Switzerland, the US, Singapore, the Netherlands and Germany are thetop five most competitive economies in the world.
David Aikman, chief representative of the World Economic Forum's China operation, said themost important development in the past decade has been the mainland's emergence as aninnovation powerhouse.