In the beginning of October 2019, China celebrated the 70th anniversary of the People’s Republic of China. From a secondary role by mid-20th century, China evolved into a superpower, with far reaching ascendance over the world. Much to celebrate, much to remember and much to do going forward.Over the first three decades of the regime, the Communist Party pushed into higher social and economic development, not always smoothly. Ventures such as the Great Leap Forward and the Cultural Revolution, intended to speed-up Chinese progress under the Founding Father Mao Zedong, led to negative side effects that jeopardized their seminal objectives. Other events, such as the rupture with the URSS and internal political turbulence after Mao’s death, pushed China further into the ropes.Usually, that period is harshly judged, and viewed, especially by foreigners, as chaotic. Yet, very important developments were also made and have to be remembered: literacy rates rose aggressively, living standards (measured by life expectancy) improved, industrial capacity was strengthened and the first bridges with the outer world were established after Nixon-Zedong meetings in 1972. Despite obvious jitters, those were not lost years.The first three decades of the People’s Republic of China set the ground for the actual leap forward, implemented in December 1978 under President Deng Xiaoping’s program of “Reform and Opening up”. From an underdeveloped, rural and isolated (both politically and economically) country, Deng’s reforms reconfigured China’s global role and led to the biggest economic and social transformation ever implemented.After four decades of relevant economic growth (sometimes at humongous rates), China emerged to become the biggest global economic (when measured in PPP terms), pushing 1 billion of its citizens out of poverty. Needless to say, this process has had far reaching impacts, changing economics, geopolitics, prices and global development patterns.Nowadays it is virtually impossible to find someone who does not own a good either produced or designed in China. Its amazing production capacity and productivity led to lower industrial prices everywhere, making staple goods such as electronics much more affordable. The urge to grow, to improve Chinese living standards and to build infrastructure has changed the global demand balance for commodities, such as food, energy and ores.Everyone talks about Chinese demand for soybeans, iron ore, oil and protein. Yet analysts forget data that are even more striking. For example, from 1949 to 1979, just 200 thousand Chinese traveled abroad. Only in 2017, 131 million of did soAnnual report 2017, available at: http://www.at0086.com/CNTA/.">[1]. Clearly, Chinese emergence had also relevant impacts on the global demand for services, culture and leisure.China has become one of the global powerhouses and, for many, the biggest one. Its share on the global economy rose from 1.8% in 1978 to 18.2% in 2017. It became the biggest exporter, surpassing Germany, in late 2010[2]. In 1978, its GDP per capita was comparable to Zambia’s; by 2017, it increased by 50 times[3].In November 2018, an article on South China Morning Post asked: “Was China that changed the world or the world that has changed China?”Over 40 Years of Diplomatic Drama, a Rising China Opens up to, and Transforms, the World,” South China Morning Post, November 12, 2018, available (in English) at: https://www.scmp.com/news/china/diplomacy/article/2172540/over-40-years-diplomatic-drama- rising-china-opens-and.">[4]. The answer, as the question, clearly goes on both ways.Nonetheless, things had to evolve. The growth pattern implemented since 1979, based primarily on investments and external-led demand, has reached its limits. It gave China a lot, but started to create relevant imbalances that needed to be tackled: rising debt, pollution, inefficiencies, zombie-sectors, inequality and declining living standards.Talks about an economic growth transition started by mid-2000’s, but the Global Financial Crisis of 2008-2009 postponed its implementation. On that specific juncture, China pushed into a comprehensive impulse program, not only avoiding a local recession but also boosting growth on a global scale. Things would have been far worse if Chinese policymakers did not act promptly to avoid a more pronounced slowdown - and this Chinese prominence was recognized not only abroad but also domestically.Yet, changes had to occur. Ever since 2012, President Xi Jinping has been pushing into an economic transformation, shifting the gears of the Chinese development. The investment/export-led economy is giving space to a services/domestic absorption driven one. Supply adjustments have been implemented, reducing spare capacity in some key sectors. Pollution has been reduced, with a relevant drive into green energy and renewable sources. Financial regulation has been (continuously) revamped and improved.Rising wages and the construction of a social welfare structure boosted consumption and, therefore, helped rising living standards. Productivity gains are being achieved by strong governmental supportThe China 2025 Initiative, aimed at increasing the value added by the Chinese industry by mid-2020’s, discussion available at: https://fas.org/sgp/crs/row/IF10964.pdf.">[5], investment in R&D[6] and human capital accumulation due to better education, obtained not only in China but also on top-quality institutions abroad. Many don’t realize, but the China is already a services economy (in the sense that its share is above 50% of GDP) since 2015 and a global leader in top-tier technologies such as green energy, telecommunications and artificial intelligence.Growth rates have been decreasing, from a record-high of above 14% in 2007 to 6.6% in 2018. Many are skeptical or worried about these declining growth rates, posting that China is getting closer and closer to a hard landing. They shouldn’t be. If one looks at the structural factors, growth must/should decrease even further: smaller population growth rates, smaller investments (as a mirror of smaller savings/higher consumption) and important productivity gains (due to human or physical capital accumulation), yet insufficient to compensate for the other two declining growth drivers. Less volume but more quality: precisely what the economic growth transition is all about.The evolving economy comes pari passu with an evolving international role. After decades of relative isolationism and side-roles on geopolitical issues, China became an active player on the international arena. With the benefit of the retrospective, the point of rupture seems to be the global financial crisis of 2008: with its roots on the developed world (the United States of America), it became clear that foreign rules or development directives were not “stone-written”. Chinese active role when the Crisis emerged was not only praised, but also openly envied, fostering the sentiment of self-determination and leadership.Under Xi Jinping, the active role of China’s diplomacy reached an upper level. During his first five-year term, President Xi hosted five grand global summits and traveled to 56 countries. China never had such prominence and deep impact on global development, building-up external arms such as the Asian Investment and Infrastructure Bank (AIIB), the One Belt-One Road Initiative (OBOR) and the New Development Bank (NDB), also known as the Development Bank of the BRICS (Brazil, Russia, India, China and South Africa)[7].Furthermore, China became the culprit of economic liberalism and globalization, pushing to reform existing multilateral organizations such as the World Trade Organization (WTO), the International Monetary Fund (IMF), the World Bank and the United Nations. If feeling impossible to breach resistances, China led new initiatives, such as the aforementioned banks and multilateral institutions.Chinese branding has also evolved and the “Chinese way” is sold, with some success, as an alternative to the “American way”. It is noteworthy that this is an official agenda, boosted by President Xi himself and by venues such as OBOR and Confucius Institutes spread all over the world. Recent official speeches clearly show the desire to have an active voice in the international scenario and to promote “the Socialism with Chinese characteristics”. Quoting President Xi at the 19th National Congress of the Communist Party (2017):Socialism with Chinese characteristics is now flying high and proud for all to see (…) a new trail for other developing countries to achieve modernization (…) to speed up their development while preserving their independence (…) it offers Chinese wisdom and a Chinese approach to solving the problems facing mankind.[8]Last, but not least, hard power. China embraced its role as a military leader, projecting power throughout the Chinese Sea, the Malacca Strait, the Horn of Africa and the Middle East. Due to joint exercises with other military forces (especially maritime ones), the creation of overseas military bases and peacekeeping operations, China changed its long-lasting strategy of military isolation and became a true global player.Clearly, China now desires to set the tone. This active role is not only due to its bigger global economic relevance, and therefore the rightful necessity to defend its interests and investments, but also due to two “power vacuums”. The older one came with the dissolution of the URSS in the end of the 1980’s, leaving blanks especially on Africa and Central Asia that have been progressively filled by China (with influence, money, investments and military presence). The newer one, and much more important nowadays, came with the different posture of the United States of America under President Trump’s administration.The current American administration disengaged of several external fronts, pulling-out of deals and multilateral organizations. From architects of the global order and leaders of the multilateral governance, the Americans became source of noise and disruption. That obviously created a leadership vacuum and, once again, rightfully, China understood it as an opportunity to push its demands, its interests and its way of thinking.In conclusion, China has already emerged as a global superpower. In order to solidify China’s development model as viable alternative to the Western (American) way, two key imperatives must be delivered over the coming years.First, China has to become a high-income economy in terms of GDP per capita, thus breaching the middle-income trap. Chinese officials have been studying not only successful cases (for instance, South Korea and Japan) but also failures (for instance, Mexico and Brazil), in order to adapt its growth model and to increase the odds of higher development. The economic growth transition, the official support to innovation and R&D investments within the “China 2025” framework are all aimed at turning China into a high-income country.Second, China must ensure that its “power projection” venues are accomplished, especially the OBOR and the several multilateral investment banks and agencies. By accomplishing, we mean pushing through the logistics and financial integration, building-up a supply chain with China on top of it and delivering the world a showcase of a development model that is both sustainable and efficient - in terms of paying for itself, delivering gains that are bigger than costs for every actor involved.Obviously, the Chinese emergence will imply on dire straits and neither of these goals will be easily achieved. As we speak amidst the 70th anniversary of the People’s Republic of China, the outside world - beginning, but not solely, with the United States of America- is worried about China’s aspirations to become a global geopolitical leader. Even more, Chinese economic and technological leadership already spooks a handful of countries, going far beyond the United States.On that sense, the Trade War and most recent “tech jitters” between United States and China are just the very tip of the iceberg. It never was, and never will be, about trading goods: it is all about geopolitics, global influence and technological innovation. In the end, it is about understanding which country will be the prominent superpower going forward.Whenever a large ship sails, its wakes will agitate the water. Some will use them to move faster, but others will be disturbed. Above all, China must convince global players, including the United States, that its tides won’t be strong enough to put them in danger. That applies not only to developed countries but also to other ones that, at first, would do quite well with a bigger and stronger China - among them, Brazil.If opposition does not abate, than China must reinforce its willingness and right to move forward. China watchers know something: nothing comes without struggle and perseverance. The Chinese society understands that, eventually, sacrifices have to be made in favor of a bigger objective. That applied in the past and, certainly, will also apply in the future. Once again, quoting President Xi, but now at the Conference on Dialogue of Asian Civilizations (2019):No civilization is superior over others. The thought that one’s own race and civilization are superior and the inclination to remold or replace other civilizations are just stupid (…) the Chinese economy is a sea, not a small pond. A rainstorm can destroy a small pond, but it cannot harm the sea. After numerous storms, the sea is still there (…).Deepening Exchanges and Mutual Learning Among Civilizations For an Asian Community with a Shared Future, the Conference on Dialogue of Asian Civilizations, Beijing, May 15, 2019, available at: https://www.fmprc.gov.cn/mfa_eng/wjdt_665385/zyjh_665391/t1663857.shtml.">[9]Since the foundation of the People’s Republic, 70 years were due. There is still much more to come and, despite all challenges, I strongly believe that China will be aiming higher and higher.