The long-term survival of the international financial system hinges on whether China allows India to replace it as a global provider of cheap labour as real wages rise and its economy becomes more advanced, argues a Deutsche Bank special report published this week.

Michael Dooley, a University of California economics professor and chief economist at Cabezon Investment Group, David Folkerts-Landau and Peter Garber – both of Deutsche Bank – observe that China is "moving into the club" of countries