China adjusts to the new world order

On Oct 1, the People's Republic of China celebrated the 70th anniversary of its founding with impressive military and civilian parades meant to showcase the extraordinary progress the country has made under the leadership of the Communist Party of China. Formidable challenges lie ahead. But China's record so far, and the resources it has at its disposal, indicate that it may well be up to the task.

China's achievements are undeniable. In the last 40 years, it has realized the fastest-ever sustained expansion by a major economy, enabling more than 800 million people to escape poverty. As investment in infrastructure, science and technology, education and healthcare has expanded, and living standards have improved drastically.

But in the third quarter of 2019, China recorded just 6 percent annual growth, the slowest since March 1992. And prospects for boosting that rate are limited, not least because the world is facing a synchronized slowdown. In its latest World Economic Outlook, the International Monetary Fund downgraded its 2019 global growth estimate to 3 percent, the lowest rate since the 2008 global financial crisis.