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
As China has four times the population of USA, its per capita GDP (PPP) is still three times lower than the USA, spread out among its huge population. On the other hand, everything is so much cheaper in China - housing, transport, energy, cost of living and inflation itself is almost negligible. In fact, deflation is more a problem than inflation in China.
ReplyDeleteBear in mind that the wealth of the USA is concentrated in the hands of the top 10% of USA rich elites. Therefore, it is nothing to crow about the high USA per capita GDP (PPP) when 90% of ordinary USA citizens are hardly considered richer than ordinary Chinese per se. If you do not peel away the glamor on the surface of the USA gloating, you lose seeing the true picture. There are comments that lower income USA citizens do not even have US$400 in their pockets for emergency.
If the USA's per capita GDP (PPP) is really that high, why is there so many USA citizens living on the streets, unable to afford a home? The most ridiculous explanation I have come across was that those people without a home are people who prefer living on the streets or a 'lifestyle choice'. When they have to eat, shit, pee and sleep on the streets, that is something of a 'lifestyle choice' indeed.
From the comments of USA citizens having contact with Chinese citizens on Red Note, the realization was often of shock and awe, knowing that their Chinese counterparts are enjoying better living conditions than they could ever hope for. Taking away Tik Tok was in fact a blessing in disguise for China, able to counter all the USA propaganda over the decades. Now, the USA citizens have realized they had been lied to and are continuing to live under a Nation of liars leading them into the sewers.
If China had the same population as the USA, its GDP (PPP) per capita, will be higher than the USA. Think about that!