China is investing $20 trillion in its economy, according to a new report from McKinsey & Company.
But that’s not all.
And that means that even as the global economy is starting to recover from the Great Recession, the country still needs to expand its investment base and diversify its exports.
In fact, McKinsey says China is already investing more than $5 trillion more than its gross domestic product over the next 10 years, making it the world’s largest investor in non-defense technologies.
The world’s most populous country is also taking a heavy financial hit from its trade war with the United States and a series of retaliatory economic measures.
But China’s investments and infrastructure investments have also generated a surge in the country’s exports.
This year alone, China has invested more than the entire GDP of Italy, according the McKinsey report.
China’s investment boom is the result of a series the country has implemented in the wake of the Great Depression and the Great Leap Forward.
The economic stimulus and financial sector stimulus that China has been providing since the end of the World War II have been vital to its economy’s growth and sustained its recovery from the 2008 financial crisis, said Robert Kavcic, senior Asia economist at McKinsey.
These investments, Kavcer said, are essential to China’s long-term success.
In order to continue growing, China needs to invest in its financial system, which is where the country is most vulnerable to economic downturns, Kaptur said.
“The main driver is financial markets,” he said.
“If financial markets are weak, then Chinese firms can’t grow.”
The McKinsey Global Institute’s report, “Investment: The Great Global Investment Cycle,” finds that China’s financial system has become a major driver of the countrys economic recovery.
It estimates that China invested an average of $12 trillion in financial markets between 2008 and 2020.
That figure is nearly double what the United Kingdom invested in the same period.
As a result, China is now the worlds biggest financial market, accounting for more than 40 percent of global financial markets, the McKinys report found.
China is also the world´s second largest lender of capital to countries.
But its banking system also has some vulnerabilities.
It can be prone to fraud, with the country´s financial sector a particularly vulnerable spot.
The country has also seen a rise in the amount of non-financial assets, which it can take out to support its financial systems.
But the McKinseys report found that, despite these risks, China still has more than half of the world�s financial systems, accounting of more than one in four.
While China has more financial systems than the United Nations, it is still not as diversified as its financial sector, according Kavacic.
China has also struggled to balance its investment and export industries, particularly in manufacturing and construction.
Kavancic said China is one of the most heavily dependent countries on oil and natural gas for its export markets.
But those industries have been hurt by the global economic crisis.
Chinese leaders have promised to diversify the economy and have expanded state-owned enterprises to help meet the needs of the nations economy.
That has led to some investments that have helped the country improve its manufacturing capacity, according McKinsey and the McKinley Institute.
But Kaptun noted that these investments are still dependent on the rest of the global financial system and its ability to support the country.