While China's economy has become more and more market-oriented, China's political system remains single-party rule or dictatorship, and this is the very root of all the talk about a China threat.

The reality that no one can change is that China is becoming more important for the United States.

We know China is on a rapid, unprecedented transition, but the problem is we don't know which direction China will eventually end.

China's economy is expected to continue its extended cycle of strong growth, thanks to the pivotal role it plays in the global supply chain. China's solid manufacturing base is essential to neighboring Asian economies, which export key electronic components. Its emerging middle class and growing consumerism will continue to attract capital goods and luxury items from the rest of the world.

I get to watch traffic flows in every sector of every economy in the world on a real time basis.

They have shown that it's perfectly possible to manage a very open economy with an authoritarian single-party structure.