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China's Economy Will Overtake The U.S. In 2018
2017-01-16
Brief:According to the Conference Board, China’s contribution to global GDP will surpass that of the U.S. by 2018.
GDP is a very critical indicator when assessing a country's economic situation, and when the total economic output of each country is combined, the result is global GDP. America used to be a major force in pushing global GDP, however, things have changed nowadays. China is expected to take replacement with rapid development.

Changes in the Global Economy

The Conference Board estimates that by 2018, China’s contribution to global GDP will surpass that of the U.S. In other words, China’s economy will become more significant than America’s.
 
 
As the chart indicates, in every year since, with one exception, America’s percentage of the world’s economic output has declined. However, equally noteworthy is the exceptional in China’s economy. The vertical black-dotted line on the chart denotes the year (2018) that China’s economic contribution is projected to surpass the U.S.
 
China's Rise

How has China become such a dominant economic power? Part of the reason is its booming auto industry. To illustrate, the total number of autos sold last year in China was 24.6 million. This dwarfs total auto sales in the U.S. last year, which hit a record 17.5 million cars and trucks. In addition, SUV sales in China increased a whopping 52% in 2015. China’s auto industry is thriving and should provide stiff competition for U.S. auto manufacturers in the years ahead. Unless the U.S. government levies high tariffs on imports to equalize prices between Chinese autos and those made in America. It is important to remember that the cost of production (labor included) is much lower in China.

The world’s economy is changing and globalization is alive and well, and the U.S. and Chinese economies are increasingly intertwined, making their bilateral relationship key to global prospects. While the 20th century belonged to America, whether the 21st will be China’s remains to be seen.

Forbes
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