Global Challenges From The Rapid Rise Of China
Over the last 30 years there has already been a significant power shift to developing world in general and to China in particular. Section A tracks the shift in economic power to China by looking at shares of global GDP in terms of purchasing power parity. Section B provides a short analysis of the 2008/2009 crisis and its implications for growth. The crisis originated in the US and spread to the rest of the world. Section C looks in more detail at China. China was less negatively affected by the crisis. Section D examines some of the challenges raised by the rise of China. Section E concludes that promoting cooperation rather than increasing frictions will require adjustments among all major stakeholders, particularly the US and China.