China and the World: Inside the Dynamics of a Changing Relationship

The Peterson Institute for International Economics (PIIE) and the McKinsey Global Institute (MGI) held a release event for the new MGI report “China and the World: Inside the Dynamics of a Changing Relationship” on July 10, 2019. Jonathan Woetzel, MGI director and senior partner, who leads research on China, Asia, and global economic trends, presented the report. Comments from PIIE experts followed: Mary E. Lovely shared her own insights on the report, Nicholas R. Lardy provided an update to the Chinese economic outlook, and Adam S. Posen discussed the short- and long-term implications of the current US-China trade truce.

MGI’s new report examines the extent of China’s global scale and reach, and the exposure of sectors and countries to the China-world relationship, with particular emphasis on the technology and consumer sectors. It also looks at China’s involvement in global value chains and the potential value at stake from more or less engagement. The report also addresses how businesses might navigate what may be a highly uncertain environment.

Jonathan Woetzel has been based in Shanghai with McKinsey & Company since 1985. In addition to his position as director of MGI, he also leads McKinsey's Cities Special Initiative and is responsible for convening McKinsey's work with city, regional, and national authorities in more than 40 locations around the world. He is cochair of the Urban China Initiative, a joint venture of Columbia University, Tsinghua University, and McKinsey.

Nicholas R. Lardy is the Anthony M. Solomon Senior Fellow at PIIE. He joined the Institute in March 2003. He was previously senior fellow at the Brookings Institution from 1995 until 2003. His most recent book, The State Strikes Back: The End of Economic Reform in China?, was published in January 2019.

Mary E. Lovely has been affiliated with PIIE since August 2017. She is also professor of economics and Melvin A. Eggers Faculty Scholar at Syracuse University's Maxwell School of Citizenship and Public Affairs. During 2011 to 2015, she served as coeditor of the China Economic Review.