Watching the opening ceremony of the Olympics Games last week, most Londoners were thinking "how do we match that!" The Chinese laid on a spectacular show and the fireworks that will launch London's games in 2012 could be very drab in comparison.

Given that the budget for London 2012 has already passed £9 billion (Dh64.8bn), and many expect it to double by the end of the games, there simply may not be enough money left in the kitty for a lavish opening ceremony.

Perhaps the Rolling Stones could be persuaded to cut us a deal. Or if the organisers are really strapped for cash, I imagine the Spice Girls will be available. As for the closing ceremony, we might all just have to go down the pub.

Beijing's spectacular opening ceremony has reinforced just how important these Olympics are for the Chinese. The Olympics are a statement of China's new position in the world. They are a chance for Beijing to show itself off as a world city; a chance to show off venues built with no expense spared; and a chance to knock the Americans from the top of the medal table.

Of course, attempting to demonstrate cultural power through success in the swimming pool or gymnasium has been tried before – and it did not work out so well for the long-term success of the Soviet Union or East Germany.

So, are the Chinese kidding themselves about how these Olympics will change the world's view of their country?

They are certainly wrong to see sport as a metaphor for geopolitical strength as sport has likable habit of throwing up surprises. Of all human endeavours sport is the best at humiliating the self-righteous, the arrogant and the egocentric.

The Chinese are also wrong to assume that the world will watch their Olympics and think "gosh, what a well run, well organised and awe- inspiring country that must be".

What we are really thinking is "with a billion people and a one-party state that controls nearly everything, is that it?"

However, this Olympics has demonstrated one thing about China's position in the world – it has clearly shown how important Chinese growth and manufacturing is to the global economy.

To ensure that China did not run out of anything during the Games, companies and the government have stockpiled reserves of everything from oil to iron ore. In the months before the Games, this hoarding, as well as a rush to complete construction, led to a boom in commodity prices. However, due to the country's dreadful pollution, the authorities have now shut down large parts of the industrial base around Beijing. In order to prevent marathon runners choking to death all building sites in the capital have been shut and Beijing's roads have been cleared of over one million of its 3.3 million vehicles. More than 100 electronic, chemical and materials factories have halted work and in nearby Tianjin, 56 more factories were shut down because they used electricity from coal-fired power stations. In Hebei about 61 steel smelters were also closed for the duration of the Olympics and ParaOlympics.

The effect of this on global commodity prices has been staggering. The price of aluminium fell 2.9 per cent last week and 9.6 per cent in the past month. Copper is down 6.8 per cent and 10.1 per cent in the same period and nickel is off 0.5 per cent and 11.6 per cent.

Tin is down 11.5 per cent and 15.2 per cent respectively and zinc 8.8 per cent and 4.4 per cent. Oil has fallen from a peak of $147 just two months ago to $116.

The price falls could get worse over the coming weeks as investors in the West have myopically assumed that reduced demand from China represents the fallout from slowing economies in Europe and the United States.

In reality, the recent slump in commodity prices is all about the Olympics.

It is amazing to think that one government's paranoia over what the rest of the world will think of its smog problem could influence the global economy so much. And that is what the Beijing Olympics really shows us: China is now a vital part of the global economy and when it pauses, the world pauses. That is something else that London is unlikely to be able to compete with in 2012.



- David Robertson is a business correspondent for The Times of London