China’s rise has an outsized impact on all of us. With a growing chance that the worst effects of the pandemic are behind us, China is now the single biggest risk factor, for financial markets as well as for the world economy. That is why three turning points affecting China need close watching, as each of these will have major consequences.
The first is China’s relations with the US, as a summit meeting between their leaders nears. Another turning point is in domestic politics, where the sixth plenum meeting is about to extend President Xi Jinping’s dominance. And the final turning point is the economy, where additional headwinds are emerging which could precipitate a sharp slowdown unless appropriate policy measures are taken.
A Biden-Xi virtual summit meeting should be announced imminently