Napoleon Bonaparte famously said, ”China is a sleeping giant. Let her sleep, for when she wakes she will move the world.” In a lot of ways, he was right. While he was talking about China’s unknown military prowess at the time, these days the quote could be attributed to the nation’s economy. More to the point, how that economy affects the rest of the world.
Plenty of the world’s overall growth comes from China-related sources, from commodity demand to exports/imports. And because of that, when China is doing well, we all feel it.
So, with China’s growth cooling, should we be frightened? The answer comes with a side of caution.
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Asia’s Dragon Runs the World
China’s economic growth and transformation have been nothing short of a miracle. The nation in a few short decades has moved from being just another agricultural society to one of high-tech manufacturing, technology and overall growth. Since 1989, China has realized an average annual GDP growth rate of 9.69%. Its highest quarter of growth peaked at 15.40% back in 1993. These are both unheard of numbers. To put it in context, the U.S. has only averaged around 3.22% in annual GDP growth since 1947.
