Back to Blog
World of goo dsi6/1/2023 Chinese emigrants accounted for 2.8 percent of the total global migrant population, and immigrants to China for 0.2 percent. In 2017, half of the trips taken by Chinese tourists were to the Greater China area, and another 29 percent went to Asia. Despite large outbound flows, destinations for Chinese students have been highly concentrated in the United States, Australia, and the United Kingdom, collectively accounting for about 60 percent of all outbound Chinese students. In contrast, inbound students and tourists in China account for only small shares of global totals at only 3 percent of the global overseas student population and 4 percent of overseas trips taken in 2017. China is now the largest source of outbound students (545,000 in 2017) and tourists (150 million trips in 2018). Flows of people between China and the world (students and tourists) are rising rapidly. Furthermore, in 2017, its inbound and outbound capital flows (including FDI, loans, debt, equity, and reserve assets) were only about 30 percent those of the United States. Foreign ownership accounted for only about 2 percent of the Chinese banking system, 2 percent of the Chinese bond market, and about 6 percent of China’s stock market in 2018. ![]() However, China’s financial system remains far from globalized. China was also the world’s the second largest source of outbound FDI and the second largest recipient of inbound FDI from 2015 to 2017. Furthermore, only one Chinese company is in the world’s 100 most valuable brands. To put this in context, the average share of revenue earned overseas for S&P 500 companies is 44 percent. However, although the share of these firms’ revenue earned outside China has increased, less than 20 percent of revenue is made overseas even by these global firms. In 2018, MGI found that China accounted for 10 percent of global firms in the top 1 percentile for economic profit in 2014 to 2016, up from less than 1 percent in 1995 to 1997. Consider that in 2018 there were 110 firms from the mainland China and Hong Kong in the Global Fortune 500, getting toward the US tally of 126. ![]() Many Chinese firms have attained global scale. However, China’s share of global services trade is 6.4 percent, about half that of goods trade. China also imported $468 billion services in 2017, making it the second-largest services importer in the world. China became the world’s fifth-largest exporter of services with $227 billion of exports in 2017, triple the value in 2005. ![]() China’s global scale in services trade is not as significant as in goods. China has a disproportionately high impact on specific regions (particularly those close by) and sectors, notably those with globally integrated technology chains, and resource-exporting sectors for which China is a big market. However, trade exposure to China varies substantially by region and sector. In an analysis of 186 countries, China is the largest export destination for 33 countries and the largest source of imports for 65. China’s share of global goods trade increased from 1.9 percent in 2000 to 11.4 percent in 2017. China became the world’s largest exporter of goods in 2009, and the largest trading nation in goods in 2013. China has without doubt become a major global player in trade as a supplier and as a market. We note that this analysis builds on MGI’s earlier research on shifting global value chains, which discussed the “new China effect” driving global demand growth and reaching a new level of industry maturity.ĭownload the full report in Mandarin (PDF–4.3MB)ĭownload the executive summary in Mandarin (PDF–2.9MB) ![]() Finally, the research offers thoughts about how businesses could respond to a new era of uncertainty. The research establishes evidence of a shift in the mutual exposure of China to the rest of the world, and vice versa, and estimates the value that could be at stake from more or less engagement. Could we be at peak integration between China and the world after the years of deepening ties? Conversely, what opportunities could more engagement offer? What value could be at stake for all players?Ĭhina and the world: Inside the dynamics of a changing relationship (PDF–4.2MB) examines the state of China’s integration with the world on eight dimensions, concluding that while China has achieved scale this has not always translated into global integration. Trade disputes are making daily headlines, new rules are emerging to evaluate technology flows, protectionism is on the rise, and geopolitical tensions are becoming more heated. Accompanying this shifting exposure are the signs of stresses in the relationship. The McKinsey Global Institute’s (MGI) new China-World Exposure Index shows that the world’s relative exposure to China has increased, while China’s to the world has fallen. The relationship between China and the world now is changing.
0 Comments
Read More
Leave a Reply. |