Deng Xiaoping’s actions capitulated China into an economic superpower that is regaining wealth and power that was lost to the West centuries before. With this new abundance of wealth, China will have some consequential decisions about where to invest the wealth.

The country’s biggest risk today is economic isolation from the rest of the world. It must continue to participate actively in the world economy and contribute what it can. Total self-sufficiency is possible for China only with a decline in its standard of living.

China’s leaders are currently putting the finishing touches on the country’s 14th Five-Year Plan, which will cover the 2021-25 period. But one aspect of the plan – the so-called dual-circulation strategy – is already attracting the world’s attention. Many fear that China is “turning inward” just when the global economy is staring down the barrel of a recession. These fears are misplaced.

Despite taking a serious hit from COVID-19 lockdowns, China’s economy has proved resilient. It has not, however, fully bounced back: some activities, especially in the service sector, simply cannot be revived. Yet, unlike most of the world, China seems unlikely to become mired in a long recession, not least because of its rapid digital transformation.

In the midst of a global economic slump, China is looking to expand its domestic markets. Not only might this keep China’s economy competitive, but it might also shed China’s “factory of the world” moniker, emerging as the most sophisticated global consumer market.

COVID-19 has put the brakes on the world economy, and China has been no exception. These effects have rippled across many countries that have benefitted from Ch

The V-shapes economic recovery is likely to continue and make a positive contribution to the world. Even with all the negative talk of decoupling, investment from the U.S. is increasing substantially.

Since joining the WTO in 2001, China’s role in the world has been under intense scrutiny. As China continues its unique path of development, it must strike compromises with the international community just as the international community must compromise with China.

Widespread lockdowns and border closures aimed at combating the COVID-19 pandemic have interrupted global supply chains and largely paralyzed the global economy. Yet, the real weakness of today’s global economy is not the vulnerability of its globalized production networks, but rather souring attitudes toward globalization – and toward China in particular.

Back in 2013, the Chinese government laid out a policy agenda that promised real reforms to an economy laden with debt and distorted by the influence of the country’s large state-owned enterprise (SOE) sector. But instead of seeing that agenda through, China chose to dodge the risks entailed by marketization, and has since reverted to what it knows best: state control over the economy and the semblance of stability that comes with it.