The great powers in history have tended to have one thing in common: size matters.
While a large market does not guarantee dominance in other realms, it certainly helps, perhaps more than any other single factor. This was true of the United States and now it applies to China. Beyond being a leading economic and trading power, China is increasingly — and inexorably — becoming a global financial power.
Somehow, too many economists in the West did not see this coming. Even a decade ago, few were bullish about the growth of China’s external financial strength, with skeptics highlighting the country’s vulnerabilities.