Financial crisis is 'accelerating Chinese economic growth'

Speaking to an audience of over 100 delegates at Pinsent Masons' London headquarters, Jacques argued that the Chinese economy is now having a bigger impact on the global economy than the US.

Mr. Jacques also pointed out that the global financial crisis has accelerated the rise of the Chinese economy relative to the rest of the world. He said:

"The financial crisis has accelerated the relative rise of China vis a vis the US and more generally the west. Arguably the Chinese economy is now a more important shaper and architect of the global economy and the process of globalisation than the US. This is an impact that is largely below our radar."

"This western financial crisis is deep and profound, a portent of what is to come and how the world is changing....One of the underlying causes is the decline of the developed world and the rise of the developing world. The projected year when the Chinese economy will be larger than the US economy is no longer 2027 it is now 2018. The Chinese economy is over half that of the US. What started as transforming China is now something else- it is transforming the world...The quantity of trade that Europe has with China is very poor and speaks ill for the future of Europe. The one notable exception is Germany."

Jacques outlined the impact that Chinese economic growth is having on economies all over the world. He said that China Development Bank and the China Export-Import Bank between them lent more than $110 billion to developing countries in 2009-2010. The World Bank lent $100bn in the same period.

"China has an enormous trading imprint on the world but it's not just about trade. It's a surplus country in many different ways and has become a major financial power as a consequence," he said. "China is having an enormous impact on the 10 biggest economies in Africa in terms of its demand for commodities, its exports, infrastructure and migration."

David Isaac, a Partner at Pinsent Masons who is leading the Pinsent Masons Horizons lecture series, says:

"We are delighted that Martin was able to attend and give such an insightful and thought-provoking talk. I am sure his sentiments will have resonated deeply with a number of our clients and we now look forward to the next lecture in the series when  Sir John Vickers will speak to us about banking reform."