Even though this year there won’t be a big economic shift, it’s only a matter of years before China will rise to be the biggest economic power in the world.
The United States has been an undeniable economic leader during the past hundred years. For instance Wall Street has been the most important trendsetter in the world economy and the global trade has been measured in the name of omnipotent US-dollars.
China, however, has a huge potential to emerge. Almost a fivefold population compared to USA will offer an enormous growing domestic market while the salaries are gradually rising. China is already the World’s factory.
According to the prognosis China will surpass the US economy before year 2020 even though the buying parity still lags far behind. The economic growth the last two decades has been yearly between 6 and 9 per cent, and even up to double digits some years.
It’s been forecast that in the year 2050 the top five economic powerhouses will be China, India, USA, Brazil and Japan in this order. Populous India has already got past Germany and stands now fourth overall.
Currently number 9, Brazil will advance five places and even Russia is expected to be ahead of Germany in 2050. Canada is now number 14 and it’s prognosed to drop one place lower.
Two surprise climbers to the top ten list are Indonesia and Mexico. Indonesia, a 238 million muslim state will rise from 16th to 8th place and Mexico from its part from 11th to 8th. The only fully Europeans left four decades later are Germany (9) and Great-Britain (10).
Actually USA and the Western countries are culprits to the fact that China has grown into a big economic player.
When Deng Xiao Ping opened the gates to the west in the late 1970’s, the first comers were Coca-Cola, Boeing and Volkswagen with their machinery and techniques.
Since China abounded cheap labour, soon companies one after another started to have their products manufactured there. Of course we will benefit from wealthier China, for now the richer buy luxury goods from the west.
The last year they recorded a first month when China’s imports exceeded exports. Whatever will happen in the future, their money renminbi will not become world’s main currency for as long as their democracy and human rights are being suppressed.