August 19, 2010
It was inevitable: China has finally leapfrogged Japan to become the world’s 2nd largest economy.
In Europe, we’re excited and relieved to see Germany (who else?) turning in 2.2% growth in Q2.
In China, 10% annual growth rates are forecast, meaning the world’s largest economy – the US – must be looking over its shoulder for the first time in decades.
And it’s not just export-led growth that relies on an artificially weak currency.
China is thinking long term, increasing its presence in Africa, hoarding steel and raw materials.
For all of that, China can’t afford to see the US or EU wither entirely. Beijing’s dependence on European and American consumers mean global economic ‘harmony’ – a concept dear to the hearts of the Chinese – is as much in their interest as ours.