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The whole process of "globalization" itself is a China-centric process. Globalization means 1) find new sources of cheap products and 2) find new markets. China fits both bills. Globalization basically focuses on two countries, America and China, and their symbiotic relationship with respect to #1 and #2 above. The rest of the world, particularly the dysfunctional Third World republics that seem to require one IMF bailout after another, are almost not even involved. So this new era of globalization is not some "unstable" new situation that threatens China but rather an ideal situation that directly benefits China's development. After 20 short years of capitalism, China's already got the #2 economy in the world. It's the #1 market for both cell phone and fixed-line phones, but not only that, this year it became the #2 market for PC's ahead of Japan. While Japan, Korea, Taiwan, etc. all have seen their best economic days behind them, China has the next half-century to experience its "exponential" growth phase.

Re #56

Globalization means that things can change fast in either direction. When the going is good, the sky is the limit. If not, the pit you will fall into has no bottom.

During the boom time, it really appears that an economy grows exponentially indefinitely. American felt it that way for last several years until a year or so ago. But it stalls and frequently crashes, leaving bad aftertaste. If only good things occur to an economy, Japanese economy have already trounced U.S. by now. Or U.S. stock market is hitting above Dow 20,000 by now.

Remember that the upswing of a sine-curve looks always exponential but it goes down eventually. And grows again. Again my point is that China is poorly prepared for any downturns. More so than any other economies in E. Asia.