We are living in a very different world. Shifting macroeconomic trends including diversification and second sourcing because of de-globalization and de-coupling have significant implications for the global economy. The strategic competition between the United States and China and other major geopolitical developments will fundamentally shape the world we live in.

Modernization is the only way forward for China, which is offering enormous opportunities, not threats, to the world. There is every reason to seek areas of mutual benefit with the United States and the road map to the future, if followed, will be good for China and good for America.

After the 20th Party Congress, relations with the U.S., Europe and Japan are likely to improve, as China continues to pursue high-quality development and the integration of domestic demand with supply-side structural reforms.

Sanctions placed on Russia by Europe and the U.S. have only allowed Moscow to continue making money off exports, while simultaneously strengthening its relationship with Beijing.

Export controls are central in economic competition between the U.S. and China. A new U.S.-led multilateral export control regime could further entrench efforts to exclude China from accessing Western technology.

Last January, China’s government forecast that the country’s economy – which, at the time, was experiencing a strong rebound after the initial pandemic slowdown – would grow by 5.5% in 2022. But by the second quarter, unfortunately, the rapid spread of the Omicron variant of COVID-19 had forced the government to implement emergency containment measures in its most economically dynamic cities, including Beijing, Guangzhou, Shanghai, and Shenzhen.

America may not be able to block China’s core momentum in the manufacture of high-end semiconductors, even with its suppressive CHIPS Act. Rather, the global semiconductor industry will inevitably divide into two parallel, competing systems.

The risk of global economy going into recession has grown.

It’s been a few months since China hosted the virtual BRICS Summit over the summer, but the group is continuing their efforts to bring the summit’s theme to reality: “foster high-quality BRICS partnership” and “usher in a new era for global development.”

It is tempting to give America’s Federal Reserve great credit for its recent about-face in tackling inflation. It is equally tempting to give Chinese President Xi Jinping great credit for his stewardship of a rising and strong China. But neither deserves it – and for a similar reason.