The slowdown in China is causing alarm around the world because of the lack of aggregate demand powering the global economy. There is much talk about the South China Sea becoming a flashpoint. It is a trial of strength between the United States and China but one which both sides will be careful not to mismanage. The most important issue is still the global economy, because if we get that wrong, everything else is in danger. Eurasia is a large part of the world. In a few decades, it will be the principal driver of the global economy.
China’s Grand Design: Pivot to Eurasia 
Beijing, Nov.14.─ This summer, for the first time, financial turmoil in China created turbulence around the world and even hit New York. This is a historic event and is a portent of things to come.
Yes, China fumbled. It could have avoided certain obvious mistakes which many saw coming, but the Chinese will learn from it. What the episode shows is how the relative weights are shifting in the world way beyond just trade.
China still accounts for less than 15% of global GDP, but its contribution to global growth last year was in the range of 40%. So when that growth slackens, pretty much everyone around the world feels it.
Not surprisingly, people all over the world are concerned about China’s prospects. Is this the beginning of a decline? Are the internal contradictions sharpening, portending further, more serious problems?
The more you visit China, the more you realize that, despite all the problems, the country is organically still in the phase of growth.
In terms of aggregate demand, it will take many more years before the Chinese economy has a big enough domestic consumption sector to replace investment as the principal driver ...
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