U.S. cannot survive without China, Chinese minister says (2024)

FAQs

Does the US need China? ›

It supports US jobs.

American companies exported $192 billion in goods and services to China in 2021, constituting 7.5 percent of US exports. While expanding foreign trade can disrupt US employment, trade with China also creates and supports a significant number of American jobs.

BEIJING — The U.S. economy could lose more than $1 trillion worth of production and long-term global competitiveness if the White House pursues a sharp separation with China, according to a report released Wednesday by the U.S. Chamber of Commerce and Rhodium Group.

China has the third largest share in U.S.–World Trade following Mexico and Canada. In 2021, 8.6% of total U.S. exports of $1.8 trillion to the World were exported to China and 17.9% of total U.S. Imports of $2.8 trillion were imported from China.

The U.S. and China are the two largest economies in the world. And we are deeply integrated with one another. Overall trade between our countries reached over $700 billion in 2021. We trade more with China than with any countries other than Canada and Mexico.

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.

It has become a global expectation that China's total economic size will surpass that of the US in the next decade or so, and as long as China focuses on developing itself well, this result will be achieved naturally.

As of January 2023, the five countries owning the most US debt are Japan ($1.1 trillion), China ($859 billion), the United Kingdom ($668 billion), Belgium ($331 billion), and Luxembourg ($318 billion).

Naroff said that based on the data, "we should be able to live very easily without having to buy Chinese products. But that just may not be the case, especially for lower- or middle-income families." Naroff added: "Many goods have components that are made in China but assembled elsewhere.

Not only does China supply a tremendous amount of our consumer and commercial goods, medical supplies, pharmaceuticals, and vital raw materials, but it also controls a huge share of the world's shipping fleet and commercial shipbuilding capabilities.

China is forecast to overtake the US as the world's largest economy by around 2035, while India is expected to become the world's second largest by 2075. The two countries will be followed by the US in third place, according to a long-term outlook by Goldman Sachs.

Which economy is stronger China or US? ›

China is already the world's largest economy, its economy is more than 20 percent larger than the US economy, according to the IMF.

The counterintelligence and economic espionage efforts emanating from the government of China and the Chinese Communist Party are a grave threat to the economic well-being and democratic values of the United States. Confronting this threat is the FBI's top counterintelligence priority.

Economy. In United States, 15.1% live below the poverty line as of 2010. In China, however, that number is 0.6% as of 2019. United States has a GDP per capita of $60,200 as of 2020, while in China, the GDP per capita is $16,400 as of 2020.

It is one of the world's fastest growing countries and is the tenth largest exporter. China is also a significant recipient of foreign aid and a major borrower on international capital markets.

India is expected to overtake Germany in terms of GDP in 2025 and Japan in 2027 to become the third largest economy after the U.S. and China. Modi has pledged to make India a developed country by 2047, when it celebrates the 100th anniversary of its independence.

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.

India to overtake China as world's most populous country in April 2023, United Nations projects.

China is on pace to surpass the United States in 5^th generation fighter production, a dynamic shift with significant implications for the balance of air power in the Pacific.

China's debt is nearly 44% of its GDP and its local governments owe nearly $5.14 trillion. With the economic slowdown and collapse of land sales revenue, provinces and local governments in China are facing an embarrassing situation.

Who has the largest economy in the world? ›

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.

With $1.1 trillion in Treasury holdings, Japan is the largest foreign holder of U.S. debt. Japan surpassed China as the top holder in 2019 as China shed over $250 billion, or 30% of its holdings in four years.

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.

Singapore - Debt: 163.89% of GDP

Singapore's high debt-to-GDP ratio is partly due to the country's focus on infrastructure development and investment.

One of the main reasons why we buy so many products that have been produced or supplied from China, is because they can offer a lower manufacturing cost.

Companies import goods from China in part because their lower cost allows higher retail markups. That means more of what consumers spend goes to those companies and, indirectly, their workers. Imported goods and services constitute a smaller share of the U.S. consumer market than you might think.

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.

In this line, data acquired by Finbold indicates that as of April 12, China's national debt amounted to $14.34 trillion, ranking second globally. This value reflects a year-on-year (YoY) increase of $3.81 trillion, or 36.18%, compared to the $10.53 trillion recorded in 2022.

Aircraft, soybeans, motor vehicles and microchips are top U.S. exports to China. Since 2001, the share of these exports going to China has increased sharply. Soybeans and motor vehicles are targets of recent Chinese tariffs.

What we know: A study of US pharmaceutical production estimates that 54 percent of APIs used to manufacture finished pharmaceutical goods consumed in the United States are produced here; only 6 percent are sourced from China. Only 7 percent of total US API imports come from China.

Will China dominate the world in 2050? ›

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)

China's gross domestic product will surpass that of the U.S. in about 2035, the Goldman group led by Kevin Daly and Tadas Gedminas wrote, while India's GDP will narrowly surpass the U.S.' in about 2075.

China 2030 called for China to embrace liberal economic policies, including re-defining the role of its state-owned enterprises and breaking up monopolies in certain industries.

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.

TOKYO/BEIJING -- China's net worth reached $120 trillion in 2020 to overtake the U.S.'s $89 trillion as a red-hot real estate market drove up property value, according to a report by McKinsey Global Institute.

On this page, US states are ranked by the real gross domestic product (GDP). California has the largest GDP among US states of $2.8 billion accounting for 15 percent of the total country's GDP. Texas has the second-largest economy which constitutes 10 percent of the national economy.

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

If India were to consistently grow at this particular rate, it will take approximately 400 years for India to become the world's biggest economy. US & China grew by 4% and 6.4% during the same period. Post-Covid, i.e., 2021-22, India grew at 9.2%.

Ghost Cities are vacant neighborhoods and sometimes whole cities that were built but were never inhabited. Their existence is a physical manifestation of Chinese overdevelopment in real estate and the dependence on housing as an investment strategy.

Americans' perceptions of U.S.-China relations have become more negative over time, particularly since the start of 2020 — near the start of the COVID-19 pandemic. Today, 40% of Americans consider China an enemy of the U.S., while 32% say it is unfriendly, 12% say it is friendly, and 5% say it is an ally.

Is China an ally of the US? ›

They have close economic ties and are significantly intertwined, but also has a hegemonic great power rivalry throughout the Asia-Pacific and beyond.

Issue Summary. In recent years, tensions between the United States and China have introduced new challenges—especially related to economic and defense issues. China is a major trading partner for the United States but it is also developing its military capabilities, which poses challenges to the U.S. military.

Since the 2008 financial crisis, one-third of all growth in the world's GDP has occurred in just one country: China. In 2020, China supplanted the U.S. as the home to the largest number of the most valuable global companies on Fortune's Global 500 for the first time.

China has long referred to itself as a developing country in its official narrative. Wang Yi, director of the Chinese Communist Party (CCP) Central Foreign Affairs Office, said when he was serving as China's foreign minister in 2019 that China's per capita GDP was only one-sixth that of the United States.

Economists generally attribute much of China's rapid economic growth to two main factors: large-scale capital investment (financed by large domestic savings and foreign investment) and rapid productivity growth. These two factors appear to have gone together hand in hand.

China ranks first in terms of trade in goods and foreign exchange reserves, and ranks second in terms of its trade in services and consumer market. In 2020, it was the largest recipient of foreign direct investment.

In an analysis of 186 countries, China is the largest export destination for 33 countries and the largest source of imports for 65.

Why it matters: The United States imports roughly half a trillion dollars in goods from China, including clothing, shoes, electronics, furniture, and household appliances. Those imports help improve the lives of many Americans, particularly those in low-income households who benefit from lower prices on everyday goods.

Our competitive approach to the PRC has two objectives: first, to improve the resiliency of our institutions, alliances, and partnerships to prevail against the challenges the PRC presents; and second, to compel Beijing to cease or reduce actions harmful to the United States' vital, national interests and those of our ...

How much debt does the US have to China? ›

“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.

Chinese immigrants first flocked to the United States in the 1850s, eager to escape the economic chaos in China and to try their luck at the California gold rush. When the Gold Rush ended, Chinese Americans were considered cheap labor.

The United States has been bringing in a smaller share of its imported goods from China in recent years, in part because of Trump-era tariffs and other restrictions on trade.

Companies import goods from China in part because their lower cost allows higher retail markups. That means more of what consumers spend goes to those companies and, indirectly, their workers. Imported goods and services constitute a smaller share of the U.S. consumer market than you might think.

The top US goods exports to China are oilseeds and grains, semiconductors and their componentry, oil and gas, and motor vehicles. Many states also generate substantial economic value from service exports like travel, education, and financial services.

The U.S. and China have a roughly equal land mass, and while the U.S. has considerably more natural resources, the Chinese population is more than four times as large.

If China called in all of its U.S. holdings, the U.S. dollar would depreciate, whereas the yuan would appreciate, making Chinese goods more expensive.

Which countries hold the most US debt? Over the past 20 years, Japan and China have owned more US Treasuries than any other foreign nation. Between 2000 and 2022, Japan grew from owning $534 billion to just over $1 trillion, while China's ownership grew from $101 billion to $855 billion.

If China “dumped” USA treasuries, they would take a serious monetary loss. The price of the treasuries would drop, effective raising the return for those who bought the bonds.