The world is changing China. But China is also changing the world. It is the world’s fastest growing country and the biggest capital exporter; it possesses the largest foreign currency reserves and is already the world’s third-largest trading entity; it is the largest consumer of metals and the biggest emitter of carbon dioxide; and, quite soon, it will also be the world’s largest consumer of primary energy.

China’s high savings, rapid industrialisation and openness to the world economy have had four big consequences.