Tag Archives: china

CHINA: ON THE ROAD TO BEING NUMBER ONE

It had already been forecasted by many in the past and it seems the situation has become real. Latest reports have suggested that the Chinese economy continues to grow and has risen to become the world’s second biggest economy. This is the position that was held by Japan for the past 45 years. What is of interest is that it is forecasted that the Chinese economy may overtake the US economy in a decade. I wonder how the world will be like with China being the greatest economy over the USA. In fact I am looking forward to that day.

China’s economy was estimated to be worth $5.8 trillion (£3.62 tn) in 2010, outperforming the previously second-ranked Japan, at $5.474 trillion (£3.41 tn).It has been said that, the main drivers of China’s growth have  been manufacturing and construction which have driven up living standards and affluence in coastal cities and provincial capitals. Even in areas not targeted for development, natural resources have generated prosperity, with Shanxi, as an example, where the abundance of coal has created a new breed of billionaires.

The loss of second position by Japan could be a blow to the country that has been known to be on a cutting edge of innovative revolutions. Japan has been hit by a drop in exports and consumer demand, while China has enjoyed a manufacturing boom.  However most economists agree that while China as a whole is growing, and the average person is getting wealthier, comparing only the size of its economy to Japan’s does not paint an accurate enough picture.

Most people in China are still poor; more people live in the countryside than in cities. The average Japanese person is much much richer than the average Chinese person with the GDP per head in China being about $4,500, but in Japan it’s about $40,000 per head. So the fact remains that even though China has rose to the second spot, it’s still got along away for its people to start enjoying its economic dominance.

Fast forward ten years time, and China, if it continues to grow at the current rate will be the world number one super power. I like that.