China's massive economic importance, in one simple chart
American politics still tends to think of China in terms of cheap and plentiful exports, and as the hoarder of the globe's manufacturing jobs. But that industrial boom required enormous raw materials, and it came with a rising middle class that wants stuff.
As Joseph P. Quinlan, a chief market strategist at Bank of America, demonstrated in a recent note to clients, that's made China a key source of global consumption as well — a title our politics tends to bestow on America itself. In fact, China recently overtook the U.S. in terms of how many countries rely on it to buy their exports:
(Graph courtesy of Business Insider)
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
If the recent slowdown in China does spread, this is the route by which it will happen: By depriving the world of the aggregate demand it needs to keep providing enough jobs and rising income to everyone around the globe.
This also clarifies what should worry us about China. Yes, its authoritarianism is wrong. And yes, it would probably be wise to liberalize its markets. But in many ways China faces the same problem as the already-democratic and already-liberalized U.S. and Europe: Whether its socioeconomic order can keep enough purchasing power in the hands of enough ordinary people to maintain aggregate demand.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Jeff Spross was the economics and business correspondent at TheWeek.com. He was previously a reporter at ThinkProgress.
-
How to decide on the right student loan repayment plan
The explainer President-elect Donald Trump seems unlikely to approve more student loan forgiveness, so you may want to consider other options
By Becca Stanek, The Week US Published
-
Sudoku medium: January 15, 2025
The Week's daily medium sudoku puzzle
By The Week Staff Published
-
Sudoku hard: January 15, 2025
The Week's daily hard sudoku puzzle
By The Week Staff Published
-
US port strike averted with tentative labor deal
Speed Read The strike could have shut down major ports from Texas to Maine
By Peter Weber, The Week US Published
-
Biden expected to block Japanese bid for US Steel
Speed Read The president is blocking the $14 billion acquisition of U.S. Steel by Japan's Nippon Steel, citing national security concerns
By Peter Weber, The Week US Published
-
Judges block $25B Kroger-Albertsons merger
Speed Read The proposed merger between the supermarket giants was stalled when judges overseeing two separate cases blocked the deal
By Peter Weber, The Week US Published
-
Rupert Murdoch loses 'Succession' court battle
Speed Read Murdoch wanted to give full control of his empire to son Lachlan, ensuring Fox News' right-wing editorial slant
By Peter Weber, The Week US Published
-
Bitcoin surges above $100k in post-election rally
Speed Read Investors are betting that the incoming Trump administration will embrace crypto
By Peter Weber, The Week US Published
-
Enron mystery: 'sick joke' or serious revival?
Speed Read 23 years after its bankruptcy filing, the Texas energy firm has announced its resurrection
By Peter Weber, The Week US Published
-
US charges Indian tycoon with bribery, fraud
Speed Read Indian billionaire Gautam Adani has been indicted by US prosecutors for his role in a $265 million scheme to secure solar energy deals
By Peter Weber, The Week US Published
-
Boeing machinists approve contract, end strike
Speed Read The company's largest union approved the new contract offer, ending a seven-week strike
By Peter Weber, The Week US Published