Long after China surpassed the United States and became the world’s largest economy, the United States will still be 50 years richer than China. Simon Baptist, an economist with the Economic Intelligence Unit (EIU), told the CNBC News Agency.
“In the next 50 years, I think China will achieve far less per capita GDP, a measure of our wealth,” Baptist said. GDP (GDP) measures the performance of the individual economy and is a measure of prosperity.
The International Monetary Fund (IMF) last year estimated China’s per capita GDP at $ 10,582.1 (235 thousand crowns). This is only one-sixth of the per capita GDP of the United States, where it was $ 63,051.4.
According to Baptist, the Chinese economy could overtake the US economy in nominal dollar terms and become the world’s largest economy by 2032. Earlier estimates spoke of 2034, but Baptist said the term was postponed due to an epidemic.
The Chinese economy is recovering rapidly from the corona virus crisis, becoming the only major economy to grow 2.3 percent last year. In contrast, the U.S. estimates that U.S. GDP fell 3.5 percent. According to the Office of Economic Analysis.
Baptist said the U.S. economy “will eventually become smaller as China’s population grows larger.” In fact, for him, it does not mean anything special when it exceeds the dollar value of GDP, but it is a milestone.
But the Baptist is more conservative in his assessment than Helen Guo, an economist at the Banks of America Global Research. He told CNBC last month that China would beat the United States between 2027 and 2028.
According to Baptist, China will become another major power on the world stage besides the United States. Which of the two is stronger depends on where their power is. “I think it will be difficult for the United States to be the most powerful country in Asia after 2030, but in the long run they will remain at the same level,” he added.
Asia has become a major center of power struggle between the United States and China. Beijing has expanded its economic and political influence in the region as the United States, led by former President Donald Trump, appears to be withdrawing from the region. In contrast, new President Joe Biden has made Asia a priority of his foreign policy. He appointed several key experts in Asia to join his government, and in one of his first foreign engagements as president, he almost met with leaders from Japan, India and Australia.
But it does not look to improve relations between China and the United States, led by the Biden government. The recent first high-level meeting between the two countries was initially marked by an exchange of insults. Last week, the United States and some Western allies imposed sanctions on Chinese officials and companies for human rights abuses in Xinjiang, China.
At his first official press conference since taking office, Biden said he would not allow China to become a global leader.