As proud Americans, we have always been happy to report that the United States has the largest and most technologically powerful economy in the world. Even in our current economic climate, we still like to think of ourselves as the “superpower of the world.”
Flash forward to 2030: Will we have relinquished our role to China?
After three decades of unmatched growth, China has taken second place in the rank of the world’s largest economies. The latest government figures released today show that the country has finally surpassed Japan. If China keeps it up, forecasters predict that they will be taking us out of our first-place standing in another 20 years. But how?
China is in a position of incredible growth. There is a low standard of living (with a per capita income around $3,600) and it is still very “far from developed,” according to the New York Times. This just proves that there is a lot more room to grow in this country, which is not the case for Japan, or even the U.S. The country’s trading dominance and appetite for valuable natural resources allows it to influence the global economy. Japan’s economy has been stagnating for years, and China was finally able to take hold.
While our country and the European Union have seriously struggled in the past few years, China’s economy has continued to climb. Sure, there might be some surmounting challenges coming their way (the country relies too much on exports instead of encouraging domestic consumption, for starters), its growth is a sign that China is a force to be reckoned with.
As China passes Japan, what does this mean for our economy? Could this potentially affect our wallets? Are we going to invest all we have in China?