Where is China heading in economic policy terms and why? China will achieve global financial and economic hegemony before the middle of this century on account of the country’s elevated rates of savings and investment, a larger population than any other country, and constant emphasis on structural reforms designed to remove impediments to development. By 2050, China’s economy will be two to three times larger than the United States in our view. Aware of China’s special destiny, the overriding strategic objective of China’s leadership is ensure that hegemony comes about. To this end, China is currently undertaking three major structural rotations in economic policy. In addition, China has deployed its policy instruments – fiscal, monetary, and FX policy – tactically to address the inevitable economic shocks that occur along the way towards the achievement of the long-term economic policy objective.