In an illustration of China's increasing economic clout, the World Bank said today that the world could well look to Beijing for help if credit market turmoil saps global growth.
China would not escape unscathed from a downturn in the United States and other key markets but was in a strong financial position to cushion the impact, the bank said in a quarterly update on the world's fastest-growing major economy.
"There may even be a scenario thinkable where the international community would look at China to stimulate world demand," Bert Hofman, the chief economist in the bank's Beijing office, told a news conference to present the report.
The old cliche is that when the United States sneezes the world catches a cold.
But the World Bank cited International Monetary Fund research showing that China, for the first time, could contribute more than the United States to global growth this year - even though its economy is still only a quarter as big as America's.
So if China were to ease fiscal policy in the event of a surprisingly sharp global downturn to boost domestic demand and tilt its economy away from exports, it would provide a valuable contribution to the rest of the world, the bank said.
"Given China's rising share in the world economy, such a move is likely to reduce the trade surplus and help the world economy avoid a more serious slowdown," the report said.