China in need of a re-rating

• Published 15 Oct 2009

It is well known that China years ago became the biggest holder of foreign currency reserves and in 2009 will surpass the US in the size of its domestic auto market. Such milestones, however, are just a start.

The speed of China's rise is challenging our collective powers of description. The world's media and financial community still refers to the country as an 'emerging market' and as a 'developing nation' – and, in a narrow semantic sense, such labels remain accurate. China is indeed still developing and still emerging. However, when such descriptions are used – as they often are – to denote a secondary status in the hierarchy of nations, they are no longer accurate or helpful. In too many boardrooms, China is still seen as an adjunct to the developed world, a new feature in an established economic order and an aspiring member of the club of countries that has ruled the world under Pax Americana since World War Two. In reality, though, such views are critically out of date.