and the rest of the world feels the full impact

of the pandemic, Beijing is turning its attention

to the outside world, sending out masks, ventilators,

and doctors to alleviate the humanitarian crisis.

But there's another big question about China's role.

Can it help rescue the world's economy,

just as it did after the great financial crisis of 2008?

Back then Beijing launched a $590bn stimulus package

that got the Chinese economy firing again.

The demand that generated alongside US

and European stimulus efforts eventually

helped restore global economic growth.

Can China repeat that feat again?

That largely depends on two big things.

The first is how quickly its own economy can bounce back

from the huge virus-induced slump in the first quarter

of the year, and the second is the extent

to which China can act as a locomotive

for the rest of the world.

The FT has developed an index to track

the speed at which China's economic cylinders are starting

to fire again.

So far, it's showing a measured recovery.

You can see that economic activity,

which is shown by the red line, is lagging behind the grey

line, which shows GDP growth last year.

If we break out the constituents of that line,

you can see that some parts of the economy

are stirring back to life.

The amount of real estate sold, coal used in power stations,

and traffic on the streets are all showing an upward trend,

demonstrating that the economy is in recovery mode.

But other readings, such as cinema tickets sold,

container freight shipped, and the levels of pollution

in the air, remain bombed out.

Most economists are predicting that this recovery

will gain strength.

And China will experience a sharp snapback in growth

in the second quarter of this year.

Such a bounce would help generate demand

for the rest of the world too.

After all, China has accounted for around one third

of global growth in recent years.

The locomotive effect would intensify

if China also launches a stimulus package

like it did in 2009.

But most economists think that China

is neither able nor willing to launch a big bazooka again.

This is because the debts it has run up,

partly as a result of the 2009 stimulus,

preclude another credit-fueled bonanza.

Back in 2009 China's debt levels to GDP were modest.

Now they are excessive, with Chinese bank loans

equivalent to almost half of global GDP.

According to Rhodium, a consultancy, most Chinese bank

lending is used merely to cover interest payments

on existing debts.

This leaves very little spare for new investments.

All this presents Beijing with an unpalatable choice.

It could carry on with the policy of reducing indebtedness

but in doing so suffer the consequences

of an economic slowdown, or it could loose off another credit

bazooka to stimulate the economy but thereby risk burying itself

under a mountain of debt.