United states of America has been superpower since 1871 but the people‘s republic of china has rapidly grown over the years to get where it is. USA is the largest economy in the world in terms of Nominal GDP with a GDP of $21.44 trillion followed closely by china which has a GDP of $14.14 trillion.
But when we rank these two countries in terms of purchasing power parity, the U.S. loses its position to its close rival China. In 2019, the U.S. economy, in terms of GDP (PPP), was at $21.44 trillion, while Chinese economy was measured at $27.31 trillion.
To make things even more interesting, the gap between the two countries in terms of Nominal GDP is expected to narrow by 2025 due to china‘s rapid growth and development.This is according to IMF report.
The US is a power house in terms of Technology with big companies like google,facebook,apple, twitter and so much more originating from the country and operating all over the world.
While china is a manufacturing and exporting hub of the world. Its even referred to as “The world factory”. Any thing you want ,name it, you can get it in china at affordable prices hence the phrase “Made in china”.
The rapid and overwhelming growth of the chinese economy has resulted in Trade wars with the US. Each side has imposed huge tarrifs that mostly affects import goods.
The sanctions imposed on chiness products by the US and vise vasa has led to slowdown in global economic growth which may even lead to a recession in the global economy since the two countries control the world economy.
The Trade war has even resulted in geopolitical tensions. The US accuses china of “unfair trade practices”. Amidst those trade practices are the growing trade deficit between the two countries, the theft of intellectual property, and the forced transfer of American technology to China.
The American government wants their citizens to buy American products by making imported goods from china more expensive.
Leaving that aside,The GDP per capita of the US stands at $65,000 while that of People‘s republic of china at $10,000. GDP per capita is Total GDP of a country devided by the total population. The figures do not account how much everyone earns in a country since GDP per capita is not a measure of personal income. Note that. And therefore GDP per capita can not be used to measure the standards of living in different countries.
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The US is the biggest importer while China is the biggest exporter in the world.
The US has abundant of natural resources, valued at $45 trillion as of 2016. Its even the world’s largest producer of petroleum and
natural gas .
The U.S. has the world’s highest number of billionaires while china comes number two.
Most of the largest companies in the world are from the U.S while the people‘s republic of china comes in the second place.
China is one of the fastest and rapidly-growing economy in the world.
Although Chinese People’s Liberation Army Is the Largest Standing Army In The World, the United States has the Most Powerful and equiped Military In The World. The U.S allocates the highest budget on millitary than any other Nation in the world.
Having looked at this stats, all leave it to you to decide which among the two is the largest economy in world. Leave your thoughts on the comment section below.