China's Economy

What is your immediate reaction to this news:

China's Economy Grows 8.9%

Many of you may look at this and fear that it will signal China's continued growth at the expense of the United States, and its ever-more-imminent threat to overtake the U.S. as the world's "leading" economy. The case has already been made that China is the "leader" in the global macroeconomy, with the U.S. and Europe as followers.

There is a natural tendency to see the IPE as inherently "competitive". While this is appropriate for many reasons, it is worthwhile to note that the world economy is not "zero-sum". In fact, it is important to note that Asia (esp. China) must necessarily be a big part of any plan to get past the global financial panic and restabilize the world economy. By many counts, the U.S. needs China to do well.

So have a look at the article and consider the ways rapid Chinese growth presents both a challenge and an opportunity for the U.S.