China Rising?

Somewhat long, complicated, interesting article about the interconnectedness of the global economic system. Sample graph:

So far China has been relatively unaffected by the worst insanities of the investment markets. The Financial Times reported a story that did the rounds in Beijing: "At a secret meeting of top Communist officials at the start of this decade, Zhu Rongji, then China's premier, summoned senior academics and finance officials to teach a crash course on complex financial instruments. Financial derivatives. . . were described as like putting a mirror in front of another mirror, allowing a physical object to be reflected into infinity." This is a good description of a mechanism with a worldwide value of more than a $1,000 trillion - the equivalent of 20 years' global production - resting on sand.