The race of geopolitical strategies based on infrastructural development abroad is a part of the new great powers rivalry. The so-called geo-economics contest (Luttwak) is the new global battle, a competition through commerce for getting economic advantages at the intersection of investments and loans, contracts opportunities, conquest of more worldwide market share and improvement of own supply chains, with the declared noble aim of contributing to global development.

Despite a slowing of global economic tailwinds, China is expected to see 4.7 percent growth next year for many reasons, including domestic consumption. Government spending will expand, and private investment will be encouraged. All in all, China will gradually see a return to economic boom times.

As the internationalization of currencies in emerging economies advances, a multipolar monetary system will result. Look for an international monetary system characterized not by a single currency alone but by multiple players.

Xi Jinping has urged the European Union to not follow the U.S.’ lead in decoupling with China. However, the actions of his government have encouraged exactly this. The EU is starting to move towards a China-plus-one strategy, similar to the U.S., and has begun trading with China in transactional benefits instead of ‘win-win’ trading.

Colossal structural shifts are taking place in the global economy, as evidenced by the huge challenges of the ongoing year. In 2023, China is moving toward recovery, but the West will cope with recession and the specter of a debt crisis.

China’s market reforms and economic restrictions have transformed its economy into a more capitalistic state since 1979. What can it do to ensure equality as costs of living rise and income disparity becomes more pronounced?

After the Xi-Biden meeting in Bali, attention should turn in earnest to a global vision in which the two countries share a common obligation — supporting globalization and multilateralism — not only to manage differences but also to avoid economic fragmentation.

China has not taken sides over the Russia-Ukraine conflict for good reason. It is Russia’s strategic partner and Ukraine’s largest trading partner. At the same time, China and the West are not enemies. We must coexist despite our differences.

In 2020, Sebastian Mallaby of the Council on Foreign Relations announced the beginning of the “age of magic money,” in which advanced economies would “redefine the outer limits of their monetary and fiscal power.” By July 2022, Mallaby was predicting that this age was coming to an end. But, while most major central banks are now reversing quantitative easing (QE) and raising interest rates, China may need to head in the opposite direction.

Impacts of the United States’ ban of semiconductor exports to China have yet to be fully understood. Beijing must scramble to discover new ways to access the most critical supply chain.