China to be the world's new growth catalyst - Rabobank

According to the analysts at Rabobank, rising US protectionism creates opportunities for Asian countries to fill the void and China can move up to the centre stage, but the government will have to tackle major internal and external imbalances, which is easier said than done.

Key Quotes

“The implementation of an innovation and education agenda in combination with a substantial improvement of China’s institutional quality could lead to substantial economic gains.”

 “For China, the implementation of an innovation and education agenda in combination with an improved institutional framework could lead to substantial economic gains. Scenario analyses illustrate that under relative conservative assumptions these gains could be as high as USD 6.5trn of additional value added in China by 2025. The amount of USD 6.5trn is equivalent to one-third of total US GDP today (roughly USD 18trn, 2015 USD PPP). In an extreme scenario where China would follow-up on the innovative trailblazers in Asia, economic gains in 2025 could even be as high as USD 19trn of additional value added, which is somewhat more than US GDP now.”