Growing exposure to China’s economy 
2019-07-09
A REPORT by the global consultancy firm McKinsey & Company says the world has become increasingly reliant on China as its economy is being increasingly integrated into the world economy.
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.
A report on the index said the world’s exposure to China’s economy had 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 had become the key driving force for China’s economic development. 
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.
That is primarily due to China’s focus on domestic consumption, which has contributed more than 60 percent of GDP growth in 11 of the 16 quarters since 2015.
