China vs the US

WORLD LEADERS

Once upon a time, not so long ago, the world economy was dominated by the United States.

It played Pied Piper to most other countries, leading the way both into downturns and upturns. With the emergence of China as an industrial force, however, there are two economies now competing to call the tune, and this has introduced an interesting and potentially disruptive dynamic within the international economic cycle. When analysing the impact of this new dynamic, there is a further complication to take into account: whereas the US economy is a generator of demand, China’s role is more on the supply side (unless you happen to be a manufacturer of Western luxury goods or a supplier...