The world has become more reliant on China: McKinsey report

The world has become increasingly reliant on China as the country's economy was increasingly integrated into the world economy, claims a recent report by the global consulting firm McKinsey & Company.

The McKinsey Global Institute has created a new China-World Exposure Index, which measures the relative importance of the economic links between China and the global economy compared with other large economies by looking at data on industrial output, consumption, and capital investment.

Aerial photo taken on June 24, 2019 shows the Bund in Shanghai. [Photo: VCG]

A report on the index says the world's exposure to China's economy has risen since the start of this century.

For example, the study shows that China contributed about 35 percent of the world's total industrial output from 2001 to 2017.

The report noted that constant technological innovation has become the key driving force for China's economic development.

It also found that China is the world's biggest market for automobiles, liquor, and smartphones, with China's consumption accounting for about 30 percent of the world's total.

At the same time, however, China has been reducing its exposure to the world economy, especially in terms of commerce, technology, and capital, as the country's economy shifts in focus to domestic consumption.