How resilient, flexible businesses will weather volatility and uncertainty

The relationship between China and the world is changing in ways large and small, triggered by factors ranging from the rebalancing of China's economy toward services and domestic consumption to rising trade tensions and ASEAN's emergence as an attractive sourcing destination.

Those factors are explored in a recent McKinsey Global Institute report, China and the world: Inside the dynamics of a changing relationship. Most important, the research finds that China's exposure to the world in trade, technology and capital has fallen in relative terms, while the world's exposure to China has increased.

Moreover, although the report focuses more on manufacturing than services, several of the trends the researchers identified will be crucial across a broad spectrum of industries - with potentially destabilizing effects.