China Just Overtook The US As The World's Largest Economy

[bryant.coleman]

China's economy is currently growing, but it will not grow for too long unless they change their policies. The debt to GDP ratio has already hit the 250% mark, and it is not a good sign by any means.

[Eisenhower34]

China is now The World's Largest Economy
http://finance.yahoo.com/news/china-just-overtook-us-worlds-090801574.html
United States is declining faster than I thought.

YET

US Defence Spending:  $756.4 billion
China Defence Spending:  $115.7 billion

2014 figures.

Figure alone can be misleading. Need to take effectiveness and efficiency into consideration also.

The US is able to spend their defense dollars more efficiently then China. The US generally has more advanced military technology so each additional dollar spent is able to purchase weapons that can produce more damage.

Also the US has been spending vast amounts of money on defense for much longer then China has so it already has stockpiles of weaponry and technology to use if necessary

[msc_de]

DONT FORGET GINI INDEX

[zyzzbrah]

Under free trade we have a common division of labor, and a pseudo common market. Its not valuable to distinguish between the "china economy" and "american economy". Its one economy and the china region is now larger in its contribution to the combined gdp. Under free trade we should not be making these distinctions at all.

[BCwinning]

who would ever have thought capitalist communists.

No worse than Western nations that constantly preach 'free trade' yet subsidize' exports, bail out banks and other failing industries with tax revenue and impose strict tariffs on imports.

actually I think the west is jealous and are trying to replicate their system.
Especially with their one world gubment crap they keep slowly building up.

[mmsen]

who would ever have thought capitalist communists.

No worse than Western nations that constantly preach 'free trade' yet subsidize' exports, bail out banks and other failing industries with tax revenue and impose strict tariffs on imports.

actually I think the west is jealous and are trying to replicate their system.
Especially with their one world gubment crap they keep slowly building up.

I don't think thot they are trying to replicate anything.

The Western nations are the authors of this great gome of hypocricy.

The only difference is that the Chinese are getting much better results.

No nation has pulled so many of its citizens out of poverty in as short a time period China.

[Vod]

The US is able to spend their defense dollars more efficiently then China. The US generally has more advanced military technology so each additional dollar spent is able to purchase weapons that can produce more damage.

I disagree with this.

From my limited knowledge of the subject, I've seen the US spend much larger amounts on new aircraft and new naval ships just for new technologies.  The weapons themselves can't produce more damage - the vehicle that delivers the weapons becomes harder to hit.  The US has no problem spending a billion dollars just to increase likelihood of survival a few percent.

In other words, the US spends a lot more per soldier than China does.  But in their defence, they have a lot more soldiers and don't need to protect them as well.   

[lili song]

I'm no wonder about this news.

Chinese's population is the largest in the world.
And they called as a massive production machine that can make any kind of product both of original or copy one.

And their buying demand is high that will increase their revenue

[newflesh]

China is now The World's Largest Economy
http://finance.yahoo.com/news/china-just-overtook-us-worlds-090801574.html
United States is declining faster than I thought.

YET

US Defence Spending:  $756.4 billion
China Defence Spending:  $115.7 billion

2014 figures.

Still going to be a while before China overtakes the US in military expenditure. China still only has one aircraft carrier (which isn't combat operational).

[Snail2]

Figure alone can be misleading. Need to take effectiveness and efficiency into consideration also.

The US is able to spend their defense dollars more efficiently then China. The US generally has more advanced military technology so each additional dollar spent is able to purchase weapons that can produce more damage.

Also the US has been spending vast amounts of money on defense for much longer then China has so it already has stockpiles of weaponry and technology to use if necessary
[/quote]

China don't need to spend that much on defense. Attacking China would be a costly war and that would be the mutually assured destruction of the world economy for at least a decade, therefore the attackers would shot themselves in the leg.
(Not to mention that Russia has close ties to China so they would likely to be pissed off.)

At this point China only needs to build up technologically, keep strengthening it's own economy and to establish the means of their power projection for the future. The USA will bleed out economically within a few decades and will have to introduce some new, more introverted policies for sorting out it's own problems. That will be time when China can start spreading her influence over the word without getting involved in costly clashes with other power centers.

[cryptocoiner]

China and Russia will be best economy in the world

China yes. It will be the biggest economy in the world sooner or later.
But russia no. It has only 140 million people. That's not enough.
Unless it will restore soviet union on a new basis or something.

[cryptocoiner]

Only with Purchasing power parity (PPP)
But in nominal GDP it still has a way to go.

[ruletheworld]

Only with Purchasing power parity (PPP)
But in nominal GDP it still has a way to go.

PPP makes the most sense in comparing economies anyway. Would you disagree?

[cryptocoiner]

Only with Purchasing power parity (PPP)
But in nominal GDP it still has a way to go.

PPP makes the most sense in comparing economies anyway. Would you disagree?

Yes, I disagree. Only real numbers make sense. Purchasing power parity is bullshit. All depends on how you count this "power parity".

[ANTIcentralized]

Only with Purchasing power parity (PPP)
But in nominal GDP it still has a way to go.

PPP makes the most sense in comparing economies anyway. Would you disagree?

I disagree as well (alone with the person above me). GDP is what the economy actually produces over the time measured, the actual economic output. PPP adjusts for standard of living giving countries with worse standard of living an upward revision

[BCwinning]

who would ever have thought capitalist communists.

No worse than Western nations that constantly preach 'free trade' yet subsidize' exports, bail out banks and other failing industries with tax revenue and impose strict tariffs on imports.

actually I think the west is jealous and are trying to replicate their system.
Especially with their one world gubment crap they keep slowly building up.

I don't think thot they are trying to replicate anything.

The Western nations are the authors of this great gome of hypocricy.

The only difference is that the Chinese are getting much better results.

No nation has pulled so many of its citizens out of poverty in as short a time period China.

pull the blinders off and you'll see it all around you. it isn't apples to apples or close to it yet.
But it's being spliced in as we sit around bitching about it online.

[galbros]

Only with Purchasing power parity (PPP)
But in nominal GDP it still has a way to go.

PPP makes the most sense in comparing economies anyway. Would you disagree?

PPP may make sense for comparing how the people in the country can live, e.g. for things like GDP per capita as a measure of wealth, but I think nominal (or real) GDP makes the most sense when comparing the economic power of nations.  If the US and China both went to buy stuff from other nations, the US could afford a lot more, China's forex reserves notwithstanding.

However, I think China is on track to surpass the US even nominally by 2040 or so.  It is clearly going to be a different world.

[panju1]

It will be quite some time before China's per capita income overtakes the USA. 

[cryptocoiner]

Only with Purchasing power parity (PPP)
But in nominal GDP it still has a way to go.

PPP makes the most sense in comparing economies anyway. Would you disagree?

PPP may make sense for comparing how the people in the country can live, e.g. for things like GDP per capita as a measure of wealth, but I think nominal (or real) GDP makes the most sense when comparing the economic power of nations.  If the US and China both went to buy stuff from other nations, the US could afford a lot more, China's forex reserves notwithstanding.

However, I think China is on track to surpass the US even nominally by 2040 or so.  It is clearly going to be a different world.

more like by 2020 =)

[scarsbergholden]

Only with Purchasing power parity (PPP)
But in nominal GDP it still has a way to go.

PPP makes the most sense in comparing economies anyway. Would you disagree?

PPP may make sense for comparing how the people in the country can live, e.g. for things like GDP per capita as a measure of wealth, but I think nominal (or real) GDP makes the most sense when comparing the economic power of nations.  If the US and China both went to buy stuff from other nations, the US could afford a lot more, China's forex reserves notwithstanding.

However, I think China is on track to surpass the US even nominally by 2040 or so.  It is clearly going to be a different world.

China is seeing higher bursts of economic growth but are also seeing more economic slow-downs. I am not sure if China or the US is seeing a higher long-term economic growth rate, however it is far from certain that China will be able to maintain a high rate of growth, especially considering the fact that the government is building a lot of real estate that is sitting vacent.