President Xi Jinping’s visit to the US in late September was risky, coming at a time when China’s economy was seemingly in trouble. Would he be on the defensive and appear weak since market perceptions of China have turned more negative in recent months? Yet the economic realities are less alarming and Beijing has the potential to put its economy on a more sustainable growth path if it so chooses.

Mr Xi’s visit was a meeting between two powers, each with its own strengths and insecurities. China is now the largest economy in the world in terms of purchasing power parity. Thus it is not surprising Gallup polls showed that in 2014, 52 per cent of the American public believed that China was the world’s leading economic power, and with this perception comes many overhyped fears. When the Chinese were asked the same question, they responded that America was the world’s leading economic power. And the Chinese are right. A country’s economic might is determined not solely by the size of its economy but also by its per capita income level, which determines its capacity to deal with issues such as foreign policy and security. By that measure, China now ranks about 80th globally and is the first developing country to become a great power. This explains its insecurity and reluctance to assume the responsibilities expected of a great power.

The US suggests that China should take on more responsibilities, while Beijing maintains that any change in the international order should be based on the new economic realities. This sense is conveyed in China’s official statement on Mr Xi’s visit, which covers 49 points. It begins with the headlined theme for the visit — “The new model of major country relationship between China and the US” — a characterisation that the US does not ascribe to, illustrating the uncertainties on both sides.