China’s companies are rising in the global economy, matching the US. So China will surpass the US economy. Then what? Chen Deming warned about the future
“The world thought it would change China, but China’s success has been so spectacular that it has changed the world,” wrote Philip P. Pan in The New York Times. According to this year’s list of Fortune Global 500 Companies, 119 companies made it the list, roughly on par with the US, which had 121 companies in the list; three companies made to the top ten, beating the US and Japan.
©123.rf. Shaanxi, Xian. Second-tier such as Xian, Jinan or Nanjing will drive PRC consumptions in the future.
So China Will Surpass the US. Economy. Then What? The answer is still uncertain. China’s economy is ascendant and will replace the US as the largest around 2030, China’s corporations are rising in the global economy. The rise of large companies in the Chinese economy has been one of the main factors that have helped the country achieve sustainable growth, ahead of other emerging economies such as Africa or SEA. Companies like Alibaba Group, for instance, have been helping smaller Chinese firms expand their exports by providing guarantees for importers.
World Bank: While Chinese companies continue to get bigger, they are also becoming innovative, catching up with the US.
In coming years, as China switches to a new model of growth based on consumption, its economy looks certain to slow much more substantially. Thus, the Dragon is now e-commerce and retail market top market in the world. Nevertheless China’s economy is slowing down, the country is still set to eclipse the US in the world’s top retail market for the first time.
Retail sales in China will reach more than $5.6 trillion this year, about $100 billion more than in the United States, according to a report published by research firm eMarketer. The Chinese population’s growing wealth and the rapid development of e-commerce have driven the country’s epic retail boom.
Chen Deming: “If China thinks it’s overtaking the US any time soon, here’s a wake-up call”.
Chen Deming, the powerful former Minister of Commerce, during a forum organised by the Centre for China and Globalisation, a Beijing-based think tank, last April said “do not take it for granted that China is No 2, and do not make the assumption that we will be No 1 sooner or later”, moreover he warned “if China thinks it’s overtaking the US any time soon, here’s a wake-up call”. What’s the meaning? China have to face future’s challenges.
© Unsplash. Dubai, United Arab Emirates. While many Middle Eastern startups are based in Dubai, the city also hosts around 4,000 Chinese companies.
A nation’s power is not limited to its economic size. It is also about its productivity, sophistication, technology and management skills. It is about its military and diplomatic strength, and what is often termed “soft power” – developments in the fields of science, education, culture and the arts.
On most of these measures China still lags far behind most of the Western countries. A more meaningful measurement of the development levels, productivity and sophistication of a society – not to mention the personal wealth of its citizens – is GDP per capita.
From the “factory of the world” to the world forerunner, China’s economy Great Leap is touchable.
Last year, China’s per capita GDP was 64,500 yuan – about US$9,400 – compared to US$53,712 in America. China’s per capita income did not even beat the world average of US$11,570 in 2018 and was below the benchmark of US$10,000 that separates middle-income and low-income economies.
© Unsplash. Ke Yuan Nan Lu, Shenzhen. Beijing, Shanghai, Shenzhen and Hangzhou have emerged as China’s leading hubs for the fintech sector.
After the end of Cultural Revolution,nobody could imagine that China could sit again on the same table of world’s superpower. Today PRC is the second economy in the world, hi-tech leader and so far from utopist dream of Chairman Mao. From the “factory of the world” to the world forerunner, China’s economy Great Leap is touchable. China is the second economy in the world, but still have a gap comparing with United States and have to face its own challenges. Anyway, the Chinese have taken a commanding lead in that most intangible but valuable of economic indicators: optimism.
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