China’s rapid growth over the last two decades has shaken the world. Globalization, the catchword of the 1990s, has gained its prominence due to the open-ing of the Second World (i.e. Central and Eastern Europe and the former Soviet Union) and the rise of new industrial powers in Asia, most prominently China. But it is China’s rise that worries the rich world, while competition from the post-communist transition countries worries only western Europe – if not only Germany. China’s transition has been more economic than political (in contrast to the Second World). What are the implications for the world economy, in particu-lar for the distribution of income and wealth? How will China contribute to shaping not only the globalized world economy but also the institutions and policies of global governance?