Tuesday, August 17, 2010

China: World’s Largest Economy In 2027?

China has surpassed Japan as the world’s second largest economy last quarter. The Communist country led the world out of last year’s global recession with an economy over 90-times larger than when former leader
Deng Xiaoping ditched-line Communist policies in favor of free-market reforms in the year 1978.

China’s GDP was reportedly $1.288 trillion more than Japan’s for the second quarter. Predictably the China will take over the U.S. as the number one spot by 2027 according to Goldman Sachs Group Inc.chief economist Jim O’Neill.

China has already overtaken the U.S. last year as the biggest automobile market and Germany as the largest exporter. They are the world’s number one buyer of iron ore and copper and the second biggest importer of crude oil.

And with their larger population and our poor economy, China is on the path to take the U.S.’s position as the world’s largest economy around 2020. The Organization for Economic Cooperation and Development
reported in March that China’s future influence on the global economy will increase. Their enormous expansion will contribute one third of the world’s growth this year. So what is our government going to do
about this?

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