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In the race of economies, China is now number two. It passed Japan and will most likely stay there for the rest of the year. China's economy is valued at $1.33 trillion beating Japan's $1.28 trillion.
So, you say, what's the big deal? The big deal is that China is now the powerhouse in the East, while the U.S. remains the leader in the West. China can use its clout to increase trading with nearby countries in the East. The number two slot is important because China beat out the European Union, even its biggest exporter, Germany. So we can say that China has moved westward.
Unlike Japan, that is stagnant with an aging population, China, has room to raise its standard of living for a large segment of its population.
China has become a driver of global growth. With China's growth comes greater influence over world issues.
As compared to the United States, China passed the U.S. to become the leader in car production. U.S. companies recognize the importance of China in the world spectrum and are moving aggressively into China.
With globalization of trade, China is in the catbird's seat. It can produce goods cheaper than almost everyone else, and when push comes to shove, price dominates in the marketplace.
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Reader Comments (Page 1 of 1)
8-16-2010 @ 11:36PM
Peter Van Schaik said...
Sure, China is number 2 in total output. But let's not forget it takes China about 1,338,612,968 people (2009 population) to produce 1.33 trillion dollars worth of goods and services while it only takes Japan 127,078,679 people to produce 1.28 trillion dollars worth. So China is producing about $990 of value per capita while Japan is producing about $10,000 worth per capita.
This will really matter in the coming years as the Chinese citizens demand an increasingly better lifestyle for the masses and China will have to consume an increasingly larger share of the world's resources to accomplish that goal.