Is China charting its own course?
Is China charting its own course?
Chart • September 2, 2025
In this chart
Once closely tied to broader emerging markets, China’s correlation with EM ex China has steadily weakened over the past two decades. Its distinct economic structure and policy-driven dynamics suggest investors may benefit from analyzing China separately when shaping their emerging market strategies. Doing so could help investors sharpen their perspective on risks, opportunities and global influence, and support more informed allocation decisions within EM portfolios.
Correlation between China and EM ex-China has plunged
Source: MSCI. Data as of July 31, 2025.