I had coffee today with Ivan Chu, CEO of Cathay Pacific Airways (and now a subscriber to this newsletter.) From his perch in Hong Kong, which serves as airline hub for the Pearl River Delta, he monitors a key artery to the Chinese economy. And his view, based on that, is surprisingly optimistic. While cargo traffic is down, he says, reflecting the slowing of Chinese exports, passenger traffic is up double-digits from last year. That’s consistent with the Chinese government’s desire to make the transition from an export-driven to a consumer-driven economy.

Does that mean China is on its way to be the world’s leading power by 2041? Thanks to all who offered thoughts on this debate topic, which I have to tackle tonight for the Asia Society in Hong Kong. I’m inclined to agree with those who see innovation as the key. We are in the midst of a…

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