The Chinese economy has captivated big business in America. With a population of 1.3bn and breathtaking growth rates for 15 years, it is not hard to see why. The question is: where is the hitch? What are the barriers to continued growth? The answer is twofold: protectionism and pollution. How these matters are handled during the coming years will shape the fortunes of the world economy.

Hank Paulson, US Treasury secretary, recently led the largest American government delegation ever to visit China. His goals were laudable and ambitious: establishing “strategic dialogue” with Beijing across the full range of economic and political issues. Convincing the top economic policymakers of these two countries to sit around a table was an achievement in itself.