1/5 The West is facing a double-whammy in its relationship with China. Its failure to come to terms with Covid-19 leaves countries like the US and the UK in a twilight zone, constantly handicapped by the persistence of the virus. This will inevitably delay their economic recovery

2/5 China has done brilliantly in limiting the spread of the virus. The reasons are profound. Effective government action is one. But also crucial is the cultural factor: Confucian values mean people respect the state and accept the need for social discipline and responsibility.

3/5 The pandemic figures are irresistible. Confucian-based societies like China, South Korea, Vietnam and Taiwan have done hugely better than the West, with the individualistic, free-market countries like US and UK worst of all. See graph. China is at the bottom, US at the top

4/5 That is why China's economic recovery is much faster than the West's. It has been far more effective in controlling the virus. China is the only economy in the world that is projected to grow this year. Every other economy is predicted to contract.

5/5 The consequences will be greater even than the 2008 financial crisis, which resulted in a major shift of power from the US to China. In 2014, remember, the Chinese economy overtook the US economy in GDP(ppp). Very shortly it will overtake the US GDP as measured by the dollar.