The halo effect.

The article looks at how China's economic expansion will affect growth and jobs around the globe. "What you cannot avoid, welcome," says an old Chinese proverb. The world would be wise to bear it in mind in its dealings with China. The country's global integration will have a bigger impact on the world economy than that of any previous emerging economy. Fortunately, though, it will be mostly a force for good, boosting overall prosperity. China's ascent will affect the outside world more than Japan's did in its time, not only because of the potential size of its economy but also because of two distinct features. First, for such a big economy it is unusually open to trade and investment. The second feature is that Chinese manufacturers have access to an almost unlimited supply of cheap labour. By some estimates, there are almost 200m underemployed workers in rural areas that could move into industry. The idea that China may become the world's biggest economy, with an enormous army of cheap workers, fills many in the rich western world with dread. Yet China's combination of rapid growth, vast size and openness could deliver a big boost to incomes outside China as well as at home. Rather like America when it entered the world economy in the late 19th century, China will be giving a huge boost to both global demand and supply.