China’s entry into the global economy led to a massive increase in global labour supply. Global supply chains became more unbundled and efficient, lowering inventory levels and reducing costs. And energy markets changed fundamentally as new producers emerged, notably US shale oil and gas, making global oil and gas supply significantly more elastic.
In fact, it grew by 6.2 percent last year and, based on forecasts by the IMF, it is poised to maintain growth in the 6.0-percent territory this year and next. The government is even more bullish, with the official growth targets set at 6.0 to 7.0 percent this year, 6.5 to 7.5 percent next year, and 7.5 to 8.0 percent in 2021.