China?s challenges to future sustainable economic growth and the implications for the United States

The ?stunning comeback? of China after almost two centuries is one of the most significant trends affecting Western economies, particularly the United States (US). None of the key drives that have promoted China?s growth are really at risk if the Chinese government does not deviate from its present economic policy and keeps up gradual refinement of its unique and effective social-capitalist model. The real risks to China?s future growth are remaining poverty, the unbalanced and unsustainable growth model, bureaucracy, and the corruption of government officials. China?s government is taking determined steps to solve these challenges. The great challenge for the US is its large accumulated debt with China, and the need for additional borrowing to finance its massive economic stimulus plan. There is little doubt that US will (after solving the financial crisis of 2008 with China?s help) continue to be one of the most powerful nations in the world. Nevertheless, it will have to learn to share the world leadership with other countries, particularly with China, Europe and other fast growing developing countries. Gone is the absolute dominance of the US (in terms of ideas and money), and its use of the International Monetary Fund and World Bank as vehicles to spread its influence and market economy model over the developing world.