In remaking itself, China is also remaking the world. Yet its presence in the world economy remains, on many measures, far smaller than its 20 per cent share of the global population. Given its vast human potential, rapid growth in both its trade and its output is likely to continue for years.

By 2005, China had already become the world’s third largest exporter and importer of merchandise products, after the US and Germany. It was the ninth largest exporter and seventh largest importer of commercial services. It was the world’s third largest recipient of inward foreign direct investment in the first 10 months of 2006, after the US and UK. It is running the world’s largest current account surplus, at close to $200bn in 2006, and holds the world’s largest foreign currency reserves, at more than $1,000bn.