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.