[Hong Kong company registration]The World Bank Wednesday cut China's economic growth forecast this year to 8.4 percent from 8.6 percent previously amid rising concerns about weaker exports and higher inflation in the world's second-largest economy.

The reduction in China's growth and the shift of demand to consumption and services will have important implications for other countries in the region, the bank said in its Global Economic Prospects report.

[Set Up Company Hong Kong]"Countries whose economies that are heavily integrated with China's global production chain may need to similarly reorient their economies toward domestic demand, but also redirect their export sectors toward accommodating Chinese domestic demand," the report said.

Meanwhile, China's Consumer Price Index, the main gauge of inflation, surged to a seven-month high in December due to growing demand in the festive season and disruption in supplies that caused more expensive vegetables. Analysts said the CPI may continue to rebound this year on higher food prices and a stronger economy.

[Hong Kong Company Formation]Since 2008 when the global financial crisis began, China has been trying to trim reliance on exports and focus on domestic consumption to play a bigger role in driving its economy forward.

Although exports grew 14.1 percent in December, they performed weakly in 2012 generally by dragging China's trade growth down to 6.2 percent, under the 10 percent target set at the start of last year.