In the last Year of the Rabbit in 2011, China officially leapt over Japan to claim the mantle of the world’s second-largest economy. Can China jump again, out of the emerging-markets rabbit hole to achieve the coveted developed-market status?
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Indeed, the end of Covid-19 controls in China is unleashing a wave of economic activity that should reignite growth for the entire globe.
At the World Economic Forum in Davos last month, Chinese Vice-Premier Liu He said: “China’s national reality dictates that opening up to the world is a must, not an expediency. We must open up wider and make it work better.”
It “matters tremendously”, said International Monetary Fund managing director Kristalina Georgieva, also at Davos, as China’s successful economic reopening “is very likely the single most important factor for global growth in 2023”.
There is little doubt China’s reopening is a boon for the global economy. While Chinese economic growth has moderated in recent years, it is still expected to remain significantly stronger than that of developed countries.
