China in the World Economy (2024)

FAQs

What is China position in world economy? ›

In other words, the amount of all income generated in the country from the sale of goods and services. With a GDP of 23.32 trillion dollars, the USA is by far the world's largest economy in this ranking for 2021. It is followed by China in second place with a GDP of 17.73 trillion dollars.

There is still much work to be done to propel China to the top of the world's economy, but it is certainly possible that the Chinese economy can surpass the power of the US by 2050. It may also be too early to make definitive projections of China's future.

The United States is the richest country in the world with the highest GDP, as of 2021. China is the second richest country in the world with a $17.734 trillion GDP.

In its World Economic Outlook released last week, the International Monetary Fund said China is “rebounding strongly” following the reopening of its economy. The country's GDP will grow 5.2% this year and 5.1% in 2024, it predicted.

Therefore, China's GDP growth rate of 3 percent was higher than the US' 2.1 percent last year, but the increment of the US' GDP slightly surpassed China's. This is worth paying attention to. Last year, the US boasted that its GDP growth rate might surpass China's for the first time since 1976.

China's economy has grown to one of the largest and most powerful in the world over the past few decades. Driven by industrial production and manufacturing exports, China's GDP is actually now the largest in terms of purchasing power parity (PPP) equivalence.

According to the latest available data from the World Bank, the United States of America is currently the world's largest economy, with a GDP of over $23 trillion in 2021.

1. United States. The United States has a relatively open economy, facilitating flexible business investment and foreign direct investment in the country. It is the world's dominant geopolitical power and is able to maintain a large external national debt as the producer of the world's primary reserve currency.

Analysts estimate China's outstanding government debts surpassed 123 trillion yuan ($18 trillion) last year, of which nearly $10 trillion is so-called “hidden debt” owed by risky local government financing platforms.

Will China overtake us in technology? ›

The study, which was released today, found that China has a “stunning lead” in 37 out of 44 critical and emerging technologies, including artificial intelligence, quantum computing, and robotics.

“Superpower” was coined as a concept by the American international relations scholar William T. R. Fox in his book The Superpowers, published in 1944. With the United States and China the two dominant states in a bipolar power structure, it is common to refer to both countries as superpowers.

China and Japan are the largest foreign investors in American government debt. Together they own $2 trillion — more than a quarter — of the $7.6 trillion in US Treasury securities held by foreign countries.

International Monetary Fund data show China's explicit local government debt nearly doubled over five years to the equivalent of $5.14 trillion — or 35.34 trillion yuan — last year.

Here are the 10 richest countries in Asia: China - $11.22 Tn. Japan - $4.94 Tn. India - $2.26 Tn.

Overall Outlook

In a best-case scenario, the U.S. will likely see a 'soft landing' with low/slow growth across 2023 before picking up in 2024. However, a downside scenario is a real possibility and could see the U.S. enter a prolonged recession lasting well into 2024, as is currently forecast for the UK and Germany.

India. India's GDP grew by 8.7% in 2021, reaching $3.1 trillion, making it the fastest-growing major economy in the world. Furthermore, India's per capita income has doubled in the last decade, and poverty rates have declined significantly.

Rice, maize and wheat are the three major crops, and the production of these three crops accounts for more than 90% of China's total food production.

At the end of last year the bank revisited its calculations. It now thinks China's economy will not overtake America's until 2035 and at its high point will be only 14% bigger (see chart).

With China only about 50% as efficient as the U.S. in how it combines labor and capital, there's still lots of room to improve. By 2050, Bloomberg Economics projects China's productivity will have caught up to 70% of the U.S. level—putting it in the typical range for countries at a comparable level of development.

How important is China to the US economy? ›

China is currently our largest goods trading partner with $559.2 billion in total (two way) goods trade during 2020. Goods exports totaled $124.5 billion; goods imports totaled $434.7 billion. The U.S. goods trade deficit with China was $310.3 billion in 2020.

In addition to its low labor costs, China has become known as "the world's factory" because of its strong business ecosystem, lack of regulatory compliance, low taxes and duties, and competitive currency practices.

China is the largest trading partner to Japan, South Korea, Vietnam, and Taiwan.

For 2022, GDP expanded 3.0%, badly missing the official target of "around 5.5%" and braking sharply from 8.4% growth in 2021. Excluding the 2.2% expansion after the initial COVID hit in 2020, it's the worst showing since 1976 - the final year of the decade-long Cultural Revolution that wrecked the economy.

The IMF monitors the international monetary system and global economic developments to identify risks and recommend policies for growth and financial stability. The Fund also undertakes a regular health check of the economic and financial policies of its 190 member countries.

All values, unless otherwise stated, are in US dollars. The American economy is fueled by high productivity, transportation infrastructure, and extensive natural resources. Americans have the highest average household and employee income among OECD member states.

GDP Per Capita in the Seven Wealthiest Countries, 1870 to 1930. By the turn of the century, the United States boasted the world's largest GDP per capita.

California, the largest economy in the United States, has a GDP of $3.5 trillion and a GDP per capita of $89,540.

Americans are slightly more likely to say the U.S. will be the leading economic power in the world in 20 years than to say China will be, 44$ to 37%. In 2021, more named China, 46% to 40%, but in 2020 53% named the U.S. and 30% China.

Who owes the US money? ›

Many people believe that much of the U.S. national debt is owed to foreign countries like China and Japan, but the truth is that most of it is owed to Social Security and pension funds right here in the U.S. This means that U.S. citizens own most of the national debt.

At the end of 2021, of the 98 countries for whom data was available, Pakistan ($27.4bn of external debt to China), Angola (22.0bn), Ethiopia (7.4bn), Kenya (7.4bn) and Sri Lanka (7.2bn) held the biggest debts to China.

An Associated Press analysis of a dozen countries most indebted to China — including Pakistan, Kenya, Zambia, Laos and Mongolia — found paying back that debt is consuming an ever-greater amount of the tax revenue needed to keep schools open, provide electricity and pay for food and fuel.

The United States and other western countries are losing the race with China to develop advanced technologies and retain talent, with Beijing potentially establishing a monopoly in some areas, a new report has said.

In other words, on a proportional basis, China is now roughly 75 percent as advanced in innovation and advanced-industry production as the United States. If this relative growth continues apace, China will surpass the United States by 2035.

In AI's cutting-edge field of deep learning, China has six times more patent publications than the US. Indeed China has already overtaken the United States to become the world's number one undisputed in many fields of artificial intelligence in speech technology.

An American naval expert has warned US military planners that the US Navy might lose to China's People's Liberation Army (PLA) Navy, which enjoys a substantial numerical advantage over the US, saying, “the side with the most ships almost always wins.”

The United States remains the most powerful country in the world, followed by China and Russia. However, the balance of power may shift in the coming years as countries like India and Brazil continue to grow economically and assert themselves on the global stage.

The 2022 report ranks Japan as the third most powerful country in Asia after the United States and China. India follows in fourth place, while Russia is ranked fifth, followed by Australia, South Korea, Singapore and Indonesia.

If China (or any other nation having a trade surplus with the U.S.) stops buying U.S. Treasuries or even starts dumping its U.S. forex reserves, its trade surplus would become a trade deficit—something which no export-oriented economy would want, as they would be worse off as a result.

Who owns most of U.S. debt? ›

Domestic Holders of Federal Debt

The Federal Reserve, which purchases and sells Treasury securities as a means to influence federal interest rates and the nation's money supply, is the largest holder of such debt.

Since the government almost always spends more than it takes in via taxes and other revenue, the national debt continues to rise. To finance federal budget deficits, the U.S. government issues government bonds, known as Treasuries.

At the end of 2021, of the 98 countries for whom data was available, Pakistan ($27.4 billion of external debt to China), Angola (22.0 billion), Ethiopia (7.4 billion), Kenya (7.4 billion) and Sri Lanka (7.2 billion) held the biggest debts to China.

The U.S. has run a deficit for the last 20 years, substantially increasing the national debt. In fact, according to the Department of the Treasury, the current debt is $31.4 trillion.

According to the IMF, the wealthiest nation in the world 2022 for GDP per capita was Luxembourg, with a sum of $127,673. For the sake of comparison, while the US has an overall GDP of $26.19 trillion, its GDP per capita is much lower at $75,180 than tax havens like Luxembourg, with a GDP per capita of $127,673.

Here are the 10 richest countries in the world: United States - $18.62 Tn. China - $11.22 Tn. Japan - $4.94 Tn.

For centuries, China was the wealthiest country in the world, and even after establishing relations with the West, it held a commanding position in global trade networks.

Over the past 10 years the global economy has grown by over 35%. China's share of Global GDP in 2022 was 18.5% once allowances were made for base year and informal economy size. China's data is highlighted in the table below, use the filter and sort order options to allow easy comparison with other countries.

Growth in developing East Asia and the Pacific is forecast to accelerate to 5.1% in 2023 from 3.5% in 2022, as China's reopening helps the economy rebound to a 5.1% pace from 3% last year.

How much does the US owe China? ›

The United States, holding the highest national debt globally, has a total of $31.68 trillion, representing a YoY increase of $1.3 trillion or 4.28%, reaching $30.38 trillion. Therefore, China's national debt has surged almost three times that of the United States in the past 12 months.

According to the latest available data from the World Bank, the United States of America is currently the world's largest economy, with a GDP of over $23 trillion in 2021.

Richest Country in 2050 will be United Kingdom

The United Kingdom's Gross Domestic Product in 2050 is estimated to be 3.58 trillion US dollars, with a per capita income of 49,412 US dollars. The present gap between the British economic wealth and Germany's economic wealth will contract significantly.

Emerging markets (E7) could grow around twice as fast as advanced economies (G7) on average. As a result, six of the seven largest economies in the world are projected to be emerging economies in 2050 led by China (1st), India (2nd) and Indonesia (4th)

According to a recent report by Harvard University, “From economic complexity growth estimates, India is growing at the annual list at the rate of 7.9 percent as the fastest growing country for the coming decade.

Growth of real GDP is now projected to average 2.5 percent a year over the 2024–2026 period, compared with the 1.5 percent a year projected last spring. CBO's projection of nominal GDP growth in 2023, 3.1 percent, is also lower than its previous forecast, 4.5 percent.

China's GDP should grow 5.7% per year through 2025 and then 4.7% annually until 2030, British consultancy Centre for Economics and Business Research (CEBR) forecasts. Its forecast says that China, now the world's second-largest economy, would overtake the No. 1-ranked U.S. economy by 2030.

As per the report, Indian economy will reach $ 85.97 trillion size in terms of purchasing power parity by 2050, while the Chinese GDP would be $ 80.02 trillion during the same period. The US -- currently the world's largest economy -- is expected to have a GDP of $ 39.07 trillion by 2050.