As China evolves from being the workshop of the world to an economy driven by higher value-added products and services, it will need more high-skilled workers. But if current projections hold, China is likely to come up short. According to new McKinsey research, China faces a large and widening gap in the supply of university and vocational graduates.

In this podcast, Nick Leung discusses this report with Jin Yu, Haimeng Zhang, and Li-Kai Chen. Jin and Haimeng are Partners who lead McKinsey’s Beijing and Shanghai offices. Li-Kai is a Partner in Kuala Lumpur. Nick is Managing Partner of McKinsey’s Greater China practice.