Large imbalances such as these are not sustainable over long periods, so the question arises: what needs to be done to effect an orderly resolution? Two main adjustments are needed. First, those countries with large surpluses need to rely more on domestic demand as a source of growth, and those with deficits (mainly the United States) need to increase their national savings rate.
Emergence of new economic powers is not a new phenomenon: since the 1950s, for instance, we have witnessed the rapid rise of Japan. The rise of China is different from that of any other country in terms of its size. It is not different in the sense that the world as whole will benefit.