It’s a Network, Not a Huge Bazaar

Economists sometimes portray the global economy as a huge bazaar. But it is not. It is a network, in which the links are built by expanding the flows of goods, services, people, capital, and – importantly – information. China’s goal is to create these links, and it has plenty of assets that will allow it to act as a catalyst of global growth and development.
The most obvious asset is China’s large and growing domestic market, to which other economies can gain access via trade and investment. China will thus be joining the ranks of the advanced countries in providing an export market (and jobs) for countries at earlier stages of economic development. In addition, because China has built up a capacity to invest that is far larger than its domestic economy can now absorb, it will inevitably seek opportunities abroad, both public and private. Chinese companies, in particular, will increasingly want to establish their brands internationally.

Interesting read from Michael Spence.

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