Will China be richer than the US?

The US will remain richer than China in the next 50 years or so even if China overtakes the US to become the world’s largest economy.

According to the International Monetary Fund (IMF), China’s per capita GDP in 2020 is estimated at $ 10,582.10, about 1/6 of the US’s 63,051.40. Photo: AFP

Mr. Simon Baptist, global chief economist at the Economist Intelligence Unit of the Economist Group, commented on CNBC: “China is unlikely to reach the threshold of US GDP per capita. And in terms of wealth, it will take at least another 50 years.

GDP per capita is just one measure of a country’s wealth and wealth. The latest figures from the International Monetary Fund (IMF) show that China’s GDP per capita in 2020 estimated at 10,582.10 USDabout one-sixth of the US 63,051.40.

Economist Simon Baptist made the comment after the first press conference of US President Joe Biden since taking office in January 2021. During a press conference on March 26, President Biden announced that he would not let China become the leading country in the world.

“I see harsh competition with China. China has an overall goal and I don’t criticize them for that goal. But they set their sights on being the top nation, the richest country.” world, the most powerful country in the world, “said President Biden.

“It won’t happen under me,” said President Biden.

Baptist experts said that China will become “a huge force” with the US on the international arena. Of these two powers, the dominance will depend on the geography of the nation that shows power.

“I think in Asia, the US is unlikely to remain the most powerful and influential nation until the 2030s, but the US will remain relevant for a long time,” said Baptist. .

Asia emerged as an important playground in the US-China confrontation. Beijing has increased its political and economic influence in the region, while the United States under former President Donald Trump appears to be retreating.

In contrast to Trump, US President Biden chose Asia as his foreign policy priority. This is also shown in the user strategy of the “boss” of the White House when choosing Asian faces to work for the US government. Besides, President Biden spent the first meeting with foreign partners to exchange online with leaders of Japan, India, and Australia.

US-China diplomatic relations under President Biden had a difficult start. At the high-level diplomatic meeting last week, the two sides launched criticism. Earlier this week, the US and some Western allies imposed sanctions on a number of Chinese officials and organizations on allegations of human rights abuses in the Xinjiang autonomous region. In response, Beijing imposed retaliation against the European Union and the United Kingdom.

According to Baptist expert, China’s economy, in terms of nominal GDP, could surpass the US by 2032 and become the largest economy in the world. But this prediction then left its timeline to 2034 under the impact of the Covid-19 pandemic.

The Chinese economy is recovering strongly since the recession caused by Covid-19. China is the only major economy to achieve positive growth in 2020 with a 2.3% increase in GDP for the whole year. By contrast, the US economy in 2020 will decline by 3.5% year-on-year, the US Bureau of Economic Analysis estimates.

Baptist experts’ views on China’s economic power seem more reserved than other experts. For example, Helen Qiao, Head of Asia Economy at Bank of America ‘s global research unit, believes that the Chinese economy will overtake the US earlier in the period 2027-2028.