Monday, November 9, 2015

What Happens In China Is Critical To Everyone

Larry Summers just returned from a trip to China and he argues that China plays a central role in the economic order.  China accounts for a large share of economic growth and the reforms that it is undertaking will slow its growth in the short term and promote more sustainable growth in the future.  In both cases what happens in China affects all of us.  He then raises an important question.  The relationship between the US and China will have a major impact on our future.  On the one hand, the US has a legitimate right to protects its own interests but it must also find a way to deal with the new reality.  What happens in China, given its central role in the global economy, is important to everyone.  We have entered an era in which globalization has shaped a global economy that cannot easily be managed at the level of nation states that only recognize their own interests.

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