'Will China really become the world's leading economic power?' (2024)

FAQs

'Will China really become the world's leading economic power?'? ›

London's Centre for Economics and Business Research calculated that China would indeed become the world's largest economy for 21 years, before the US reclaims the lead in 2057, itself to be overtaken by India around 2081.

The United States is the undisputed heavyweight when it comes to the economies of the world. America's gross domestic product in 2022 was more than 40% greater than that of China, the world No. 2.

China's crushing debt levels, ageing population and an ongoing property crisis means it may never surpass the US to become the world's largest economy, according to a leading investment bank.

China is in the midst of a profound economic crisis. Growth rates are flagging as an unsustainable mountain of debt piles up; China's debt-to-GDP ratio reached a record 288% in 2023.

Currently, only the United States fulfills the criteria to be considered a superpower, though this has been questioned in recent years. At present only China, the European Union, India, and Russia have consistently been academically discussed as having the potential to attain superpower status.

London's Centre for Economics and Business Research calculated that China would indeed become the world's largest economy for 21 years, before the US reclaims the lead in 2057, itself to be overtaken by India around 2081.

The US economy's strong performance in 2023, along with the challenges faced by China's economy, suggests that China's GDP overtaking the US is less likely. US gross domestic product rose 6.3% in nominal terms, compared to China's 4.6% gain in 2023.

China was the United States' third-largest trade partner in 2021. 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 Chinese Communist Party and its leader, Xi Jinping, aren't doing so well. Sky-high youth unemployment, a tumbling stock market, and continuing real-estate turmoil threaten to derail his “China dream” and possibly drag Xi down with it.

According to Mr Xi, the new productive forces will flow from the application of science and technology to production. The phrase is a signal that China's technology push should be even more ambitious than it is today, and more tightly integrated into economic production.

What country has the best economy? ›

The United States of America

The United States upholds its status as the major global economy and richest country, steadfastly preserving its pinnacle position from 1960 to 2023. Its economy boasts remarkable diversity, propelled by important sectors, including services, manufacturing, finance, and technology.

Challenges multiply after the country's years of rapid growth. China's economy is at a turning point. An old economic model underpinned by heavy investment in infrastructure and real estate is crumbling. Growth is slowing and prices are falling, raising the specter of a Japan-style slide into stagnation.

Singapore is now the world's freest economy, displacing Hong Kong after 53 years. Singapore has dethroned Hong Kong to become the world's freest economy, according to a report released by Canadian think tank Fraser Institute.

The United States has been ranked the most powerful country in Asia in a new Lowy Institute report. China's power has been affected by isolation and its zero-COVID policy. Australia was ranked sixth in the Asia Power Index.

United States. The United States of America is a North American nation that is the world's most dominant economic and military power.

The devastation caused by World War II, along with the significant economic and infrastructural damage to the United Kingdom, weakened its position as a global superpower.

The second country is China in the world economy rankings.

In 2022, the IMF judged the Chinese economy in PPP terms to be 23% larger than America. At the same time, using PPP data the World Bank estimated the Chinese economy to be 18.8% larger than America. And even the CIA considered the differential in favour of China at 16%.

According to the World Bank, China's $18 trillion economy accounts for just under 18 percent of global GDP, making it the world's second-largest economy after the United States, which accounts for about 25 percent.