China’s economic growth has averaged almost 10 percent per year over the past two decades, so that during that time its national income has been doubling every 8 years. Compare this to the euro area: our last doubling of national income took 30 years. In brief, China’s growth represents one of the most sustained and rapid economic transformations seen anywhere in the world economy.
And it has led to a significant reduction in poverty levels, too: by some accounts, over half of the reduction in absolute poverty in the world between 1980 and 2000 occurred in China. While the shock itself occurs in China, it is transmitted to the Western world. Direct effects can occur through trade, leading to more international competition.