China is one of the three pillars of the global economy together with the USA and the EU

Labour Party

This was a very prescient piece in the Guardian by Economics Editor Larry Elliott giving his take on the G20 summit, specifically in relation to China.

China is fast becoming a major power in the world, even a super power, if such nomenclature means anything these days. While we in Europe, closely watched by the United States, endeavour to get our economy, both turbulent and sluggish at the same time, back on track, the west as a whole seems to be missing an international development of gigantic proportions.

Ten years ago, in December 2001, Chinawas admitted to the World Trade Organisation, indicating its status as a fully fledged market economy. The country had indeed come a long way since the end of the Cultural Revolution in the early 1970s. Its journey from an idiosyncratic version of communism to a leading world economic power took a mere thirty years – just one generation.

Perhaps it’s this short time frame that makes us in the west place so little emphasis on China. Maybe it’s also because we don’t want to admit that the world is changing and other super powers are emerging, powers the west once thought it either ruled or controlled in some form or another. Not only does China now have a seat on the G20, it is also strong enough to be called on to contribute to the eurozone bailout.

It is now very clear that the global economy has three main pillars, China being one along with the United States and the European Union. Larry Elliott puts it very well in his comments on the G20 summit: ..”the focus of events was the unfolding crisis in the eurozone, but it was hard to escape the sense that power had shifted from west to east over the past 10 years. It was not just that Nicolas Sarkozy and Angela Merkel were holding out the begging bowl, pleading with China to dip into its foreign currency reserves to provide capital for Europe’s bailout fund. Nor was it that China’s leaders felt entirely comfortable lecturing Europe on the need to get its act together when it was not so long ago that it was the other way round….Rather it was the mixture of bemusement and derision with which China viewed (the G20) events…”

It is imperative that the west and Europe in particular heeds China’s growing status as a leading power. China’s population is 1.3 billion and its GDP $5.9 trillion, clearly a country which cannot and should not be ignored.