The average Chinese is richer than the average American

Under the USA's method of counting, they still claim they are the richest. In terms of PPP GDP, China is now about US$12 trillion richer than the USA annually. PPP is what a country could buy in terms of its currency value. Everything is so much cheaper in China and so much cheaper to make and to sell globally.

In terms of nominal GDP, China is still second biggest economy in the world. However, that hides a very significant issue with nominal GDP fixation.

China just chalked up a trade surplus of US$126 billion in June, another record in spite of the Middle East crisis and the continued technology squeeze by the USA and its allies.. By the end of this year, China's trade surplus is expected to touch US$1.2 trillion, another new record. Such accumulation of surpluses gives China much leeway to invest more in many sectors - the BRI, infrastructures, research and development, defence upgrading and subsidizing priority sectors like chips, renewable energy and more clout to roll out new global settlement system.


Anonymous