China Overtakes U.S. as The World’s Largest Economy
Dear friends,
This news is indeed interesting because China is the world’s largest economy officially now and the U.S. is second according to this report. The PPP measure of output makes India the third largest economy, followed by Japan in fourth and Germany in fifth. Russia, Brazil, France, Indonesia and the UK make up the rest of the top 10 in that order. Four of of the top ten economies arise from Asia. The balance and shift of economic power is definitely changing in the world. Some may find this news welcoming and some may not. But change is inevitable. But change is necessary.
Admin
China ‘overtakes U.S. as the the world’s largest economy’: IMF says economy is now worth £11 trillion as America falls into second place for the first time since 1872
- Figures show the Chinese economy is worth £11trillion, the US £10.8trillion
- The IMF estimates China’s economy will be worth £16.7trillion in 2019
- The US has been the global leader since it overtook Britain in 1872
By HUGO DUNCAN FOR THE DAILY MAIL | PUBLISHED: 22:46 GMT, 8 October 2014 | UPDATED: 05:19 GMT, 9 October 2014
No longer number one: Barack Obama’s America now has the second largest economy in the world.
China has toppled America to become the biggest economy in the world, according to figures from the International Monetary Fund.
The US has been the global leader since it overtook Britain in 1872, but has now lost its status as top dog.
The latest IMF figures show the Chinese economy is worth £11trillion compared with £10.8trillion for the US.
China – whose wealth has accelerated in recent decades amid rapid industrialisation – is expected to extend its lead, with the IMF estimating its economy will be worth £16.7trillion in 2019.
That would be 20 per cent bigger than the US economy, which is forecast to be worth £13.8trillion by then.
The numbers are based on ‘purchasing power parity’ (PPP) which makes adjustments for the fact that goods are cheaper in countries such as China relative to the US.
Without these adjustments for living costs, the Chinese economy is still smaller than that of the US, at £6.4trillion.
But experts have described the toppling of America after nearly 150 years by China – even on the PPP measure – as a ‘symbolic’ moment for the global economy.
China enjoyed three decades of double-digit growth before the global downturn, as industrialisation and sweeping economic reforms created a new powerhouse in the East.
Growth has slowed in recent years but remains strong by Western standards with the IMF forecasting expansion of 7.4 per cent this year and 7.1 per cent in 2015.
By contrast, the IMF is predicting growth of just 2.2 per cent in the US this year and 3.1 per cent next year, while the UK is set for expansion of 3.2 per cent and 2.7 per cent.
The Fund yesterday said the US and the UK ‘are approaching economic lift-off’ as they bounce back from the recession. But Olivier Blanchard, chief economist at the IMF, warned that ‘potential growth is lower than it was in the early 2000s’ for much of the West, including the US and UK.
Financial powerhouse: In the last decade alone, the skyline of major cities in China, such as Shanghai (pictured), have been completely transformed as the economy grew in leaps and bounds.
Or view the video on the server at:
https://video.tsemtulku.com/videos/ChinaOvertakesUs.mp4
He added that China is ‘maintaining high growth’ which will slow in the coming years to a more ‘healthy’ level between 6 per cent and 7 per cent. Arvind Subramanian, senior fellow at the Washington-based Peterson Institute and an expert on China, recently highlighted the ‘symbolic’ importance of China overtaking the US.
‘China is very big and getting bigger,’ he said. ‘It’s not to be underestimated.’
The news that China is now the largest economy in the world is an embarrassment for Barack Obama and ends America’s 142 years at the top.
Britain had out-produced the US and its European rivals for much of the 19th century, at the height of the industrial revolution and with trade links across the Empire. But the US caught up as a growing population, the expansion of the railways and a focus on industry as well as agriculture boosted its economy.
China’s wealth has accelerated in recent decades amid rapid industrialisation. Pictured, a car factory in Beijing.
China has a population of around 1.3billion – four times that of the US – but its economy has only just become the biggest.
The PPP measure of output makes India the third largest economy, followed by Japan in fourth and Germany in fifth. Russia, Brazil, France, Indonesia and the UK make up the rest of the top 10 in that order.
Many economists believe the PPP measure of an economy is the fairest measure because it takes into account the cost of living in different countries.
For example, although wages are typically far lower in less developed countries than in mature economies, goods and services are often also cheaper, which affects the comparative spending power of individuals.
But critics argue it does not take into account how well off people actually are.
China has a population of around 1.3billion – four times that of the US – but its economy has only just become the biggest.
It means that individuals in America are typically far wealthier than they are in China and other emerging markets benefiting from a huge workforce and rapid growth.
Source: http://www.dailymail.co.uk/news/article-2785766/China-overtakes-U-S-world-s-largest-economy-IMF-says-economy-worth-11-trillion-America-falls-second-place-time-1872.html
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Everything about China is big to cater for their huge population! I was amazed to see their multi-tier restaurants and huge eateries when I went on a shopping trip in China. China is bursting with new wealth and expand their trade and investments to other countries. China’s economy spillover is benefitting other countries as well.
I am not surprised China has overtaken the United States as No. 1 super power. H.E. Tsem Rinpoche has predicted this more than a decade ago and now I am seeing his prediction materialising.
It has been a prediction by the high lamas, that Chinese will become the top country economically and bring pride and dignity back to the Asian people. Asian people had experienced so much domination by the Western powers, and still some of that still persists, so this is very good news that an Asian power takes its place as a superpower and the top economy in the world.
Thank you admin for sharing this information. It is great that China overtakes US as the world’s largest economy. China has gone through a lot to be what it is today. If we read the China history we will know, how China changed from dynasty to dynasty, from emperor ruled to become military ruled, then to become communist ruled, until today. It is not easy to govern such a big country and yet, able to push the country economy to the world top. This shows that nothing stays top forever, just like our life, nothing is in peak condition forever, one day we will get old, and slowly sway away from our peak performance. Nothing is permanence in life. Hope China will get the max out of their current situation.
Dear Rinpoche
Thank you for this article. I visited China for the first time in 1994 with my family for holiday. Even then, I was impressed with the huge wide roads and infrastructure in the big cities like Beijing, Shanghai, Xi An and Shenzhen.
I came again in 2002 with my parents and sister for another holiday. I was very much impressed with the changes that I saw then. I rejoice that we are hearing even more good news about China economic growth and they have started investing in various countries around the world and therefore increase the welfare of the people in those places like what a developed country should do.
I hope to hear more good news about China in the near future.
Valentina
Fantastic…now China is top. China overtakes U.S. as the World’s largest economy.Its a long time since 1872 U.S overtook Britain was top .But with China’s wealth has accelerated in recent years amid rapid industrialization ,China is global leading now.China is still expanding in all aspect,population, and industries and so forth. ,This is an embarrassment for Barack Obama and U.S.
Thank you admin for sharing this information.
Thank you Admin for the informative article. It is surprising that China has toppled US as the world’s largest economy. The little teaching in this article is nothing is permanent in this samsara. So, maybe in a few years time other countries may toppled China as the world’s largest economy.
With folded palms,
Vivian
Whether it is PPP or nominal GDP, China has and will be the largest economy in the world for many year to come. This because of the population and work ethics of the Chinese people. They do things much faster then any countries in the world.
At this time when the PPP (purchasing power parity) has overtaken the US, it means more Chinese lead a more comfortable live above the poverty line than the US. It is rare to see people homeless in China compare to many in the US.
I hope that China will use its economic power to further influence and balance the inequality that exist in the world’s politics and economic developments as can be seen in Africa and Asia; when China has started to make an impact.
Sorry, America. China just overtook the US to become the world’s largest economy.. it is good news now China opening itself up to the world and becoming no 1. with a population of 1.36 billion people, China really should be the world’s largest economy and they are hard working . they arefast and do everything quick..
Yes KB, they are fast and do everything quick. It’s China’s turn now to rise, they are doing everything right to make different countries and their people happy. On my last trip to Nepal in 2008, I was talking to a taxi driver who said that China had done a lot to help Nepal. For example, they had given taxis to many Nepalis so they can earn a living, and my driver was one of those people who had received a taxi. He was really grateful and didn’t have anything bad to say about China.
I think people are just sick of the West telling them what to do. The West are famous for giving aid with strings attached. It’s always “we will give you this money if you satisfy these requirements.” There’s no such requirements with China and that’s what makes it so attractive.
So politicians can talk all they want but if the people themselves receive the benefits, they don’t care what the politics are. They just go with whoever makes their life better and helps to put food on the table. And if trading with China means their country will be better, and their own life will be better then they will support that.
China being one of the largest country with world leading economy and highest population, it’s excited to see the population is enjoying better living standard and at the same time the world’s economy is benefitted from China as well. Improvement in physical wealth must be accompanied by improvements in people’s mentality. China has long lost its rich culture and religion due to Cultural Revolution and Communism. It’s time China revives this, so that the people’s mind not corrupted by wealth and materialism.
It is great news that China being one of an Asia country has now emerged to be a largest economy in the world. Good job to China.
Just like what we learn in Buddhism, nothing is permanent and as long as we are work hard, we can change the situation and result.
While China will keep on growing economically, I hope the government will also take care of the social and environment matter. Based on the experience from developed country, social and environmental issue have not been the priority list. I hope they will learn from the mistake and transform China to be a country rich in economy, social, environment and cultural.
Kudos to China! Few decades after opening up herself to the world, and here she is at the top of the world! Great news indeed.
It came to me not entire as a surprise judging by the steady growth China has proven herself since decades ago.
I sincerely hope that Chinese government would not stop here – Being the largest economy means they now have the greatest responsibility towards humankind, society, environment and to the Mother Earth we now live in. I would like to see how the Chinese is going to relook at and reintroduce and integrate their 7,000 years of wisdom into today’s society. Undoubtedly, China has got one of the richest cultures known to humankind and, not to forget the Chinese wisdom that passed down generation to generation from our ancient sages. It would be interesting to incorporate ancient wisdom into today’s modern (degenerate) age!
When China opened herself up to the world, it is expected that this day will come. With her greater land mass, population and capacity of industrialisation & trade, it is only surprising that this over take in economy leadership had not happened sooner. I think the world had known as many countries had already shifted their directions in favour of China. This is a good change in many front but the one that concerns me most is that finally CTA should wake up to this reality and stop their propaganda against China. It is time CTA understand where and what China stands for and instead of having their heads in whatever clouds that may be, they should make a real move to propagate goodwill towards China in hopes for the favourable dialogue. Lift the ban on Lord Dorje Shugden so that Buddhist practitioners reunite to stand strong under good governance and be an example that China could not refuse. Om Benza Wiki Bitana Soha.
Between China, India and Indonesia, they made up 40% of the world’s population. With the huge human capital and continuously improving political landscape, the dynamic trio will be spurring regional economic growth and individually rising to global economic preeminence at the same time. China, now surpassing USA as the number 1 world economy power house occurred at the perfect timing just as EU is undergoing destabilization. We will see growth in Asia regional trade and the elimination or reduction in trade barriers; which translate to rapid emergence and intra-regional collaboration on investment, economic, infrastructure, and human capital. As a result, there will be a booming population of middle income who are modern, savvy but perhaps seeking for something more fulfilling in life than material gain. It will be an exciting decade ahead! Thank you Rinpoche and admin for this article.
This is just the beginning. China will rise as as superpower in this century. They already have influence in many regions/countries. I really liked the proposed idea of building a super bullet train from china up through russia and alaska and down the coast to british columbia ( canada) and down to california usa. I hope that dream is realized one day. It would increase tourism. Right now though it’s all about imports/exports and diplomatic activities. China will continue to rise.
当中国的经济30年来以两位数增长时，有人都在等待也有人在焦虑甚至有人怀疑中国有一天会超越美国成世界最大的经济体。根据IMF的估计，这一天很快到来了。这一天的到来是否意味着美国世纪的结束，或者美国已经衰败了？虽然无可否认，一个国家的经济跟其军事和文化等软实力息息相关；无可否认的是，中国在全球军事影响力或文化上／软实力似乎还没有达到超越美国或者距离全球第一还有一些距离。
国际关系巨擘学者奈尔曾强调，购买力不适合用于衡量经济力量，用来计算福利倒是好方式。奈尔表示，若看人均GDP，中国只达美过20%的水准 ……或许奈尔的说法很多人不同意，甚至有些偏颇；但也非全无道理，特别是他提出的关于中国的文化软实力不如意的看法－－“亚洲、欧洲和北美民众对中国的观感很差，在拉美、非洲的部分国家，中过的形象也不如人意”。无可否则，中国在这方面的确需要更多努力。毕竟，真正的世界大国，不是大在经济实力而已，文化软实力也是不容忽视的；而后者的确需要相当长的时间去“培养”。且让我们满心等待一个在经济和军事上是担当得起、负责任大哥角色的中国，同时在文化软实力方面也追赶得上的文化大国吧！
While change is inevitable just like many dynasties and kingdoms in the past, there will be countries outdoing each other in controlling world economy. The emergence of China as the world economy main player is news for people but i feel this has been long predicted.
However it remains to be seen whether there will be any significant contributions towards the environment. For every gain there will be losses, one of it in this instance will be environment giving way for development and massive economy growth.
I wish to see more efforts to be made to conservation works otherwise we will see not only a poluted China but also a main contributor towards global warming.
A couple of historical GDP diagrams for more perspective. China under the administration of the Qing dynasty also had the largest GDP in the world and for a rather long period.
According to a new’s report in a deliverence of his speech at a recent exhitiion in Beijing, China, the President of China,Xi Jinping has mentioned that, China in future, will move forward like an ernormous ship against strong winds and giant waves. All party members must on evaluating the past remember that the backward journey will always pose risks. Only development will strengthen us. It is said that in his effort to translate his dreams into reality, he must focused on building a skilled workforce to forward his country and nation towards the rejuvenation he had spelt out. President Xi Jinping pledged to extend further facilities to friendly countries in order to boost its economy surrounding its continued reform programmes. He declared not to close chinese doors to the outside World, especially, foreign investment, and kept all China’s commitments to WTO. While focusing on the promotion of regional, international and bilateral relations, President Xi Jinping was not oblivious to building the foundation of good governance in China. Being one who has emerged from the grassroots, he knows well that unless the hopes and aspirations of citizens are met, no initiatives will sustain in the long run. His indoctrinated policy to his countrymen is found so accepted he said, “Happiness does not fall out of the blue, and dreams do not come true by themselves. We need to be down to earth and work-hard. We should uphold the policy that working hard is the most honourable, noblest, greatest beautiful virtue.” Of course, when Xi Jinping first took over the Presidency, the most talked about issue during his presdency has been to establish China as a powerful nation and a “Chinese Dream” and today it is exactly what it is!!!
Sorry Obama, but I guess this is just inevitable… we all saw it coming. It is predicted and expected, China will rise again like it was in it’s glorious days and they will also influence the wide spread of Buddhism again. Hence… the spread of Dorje Shugden will then happened, like a rippling effect down from the top.
SO really CTA stop trying to challenge 1.3billion and stop irritating China so that H.H. Dalai Lama’s middle way succeeds for the sake of your own people. Learn to accept and learn to make friends China, for the sake of your people. Educate them to stop fighting a fight they obvious cannot win and most will just die in vain. Smart way is to adapt with change as that is the laws of the universe. Today it is China, tomorrow another, so stop being so fixated and attached. Learn to move on, adapt and compromise for the future.
Change is Gonna Come, as the song goes. Like they say, when you’ve reached the top, the only way is downhill (except for the case of enlightenment!). I don’t wish that for anybody of course, but it’s certainly difficult to keep pole position forever. I see it happening even in the co. I work at. I’ve been here a long time and have seen the business shift. 20 years ago, our US and EU businesses were more or less equal and Asia miniscule. But today, Asia (mainly China) has overtaken the US. Before the US became the economic superpower, it was Great Britain. Now the sands of time have changed yet again. Would it still be possible to “make America great again”, I wonder.
This CHANGE is so necessary. Is good that US is no longer the biggest. China will grow and is only logical. Even a couple of days ago, Premier Li was in Bangladesh signing trade deals worth 13.6 billion and he is not stopping there.
I hope with this in mind, CTA will change their strategy as most importantly is not about themselves but for what they can do FOR their people.
Wow! Isn’t this great news? Just another manifestation of impermanence , but on a global scale. The US had been the largest economy in the world since 1872 when it overtook Britain. Now China has overtaken it as the largest economy in the world! According to IMF(using Purchasing Power Parity as a measure), the Chinese economy is worth £11 trillion, whereas the US is worth £10.8 trillion. Actually, it should not come as a surprise, seeing China’s amazing industrial growth and expansion in recent decades. IMF also forecasts that, moving forward China will continue to keep its lead. The IMF estimates that China will expand by 7.4 per cent this year and 7.1 per cent in 2017, whereas the IMF is predicting growth of just 2.2 per cent in the US this year and 3.1 per cent next year, while the UK is set for expansion of 3.2 per cent and 2.7 per cent.