China has overtaken US - Koon Yew Yin
Publish date: Fri, 16 Sep 2022, 05:50 PM
After seeing the title of my article, many of you do not believe me because you have not heard it from any of the western media. If you Google “China has overtaken US, you will see these 2 images as shown below.
According to IMF’s World Economic Output 2020 released recently, China has overtaken US to become the world’s largest economy. The world is waking up to a new reality post the devastating pandemic that brought everything to a grinding halt. One of them is the rise of China as the undisputed new economic superpower.
The average annual GDP growth rate for China is about 10% and the average annual GDP growth rate for US is about 2% in the last 40 years as shown on the 2 charts below.
An Economic Miracle
China commenced its transition to a global powerhouse in 1978, as Deng Xiaoping ushered in sweeping economic reforms. In the three decades from 1980 to 2010, China achieved GDP growth averaging 10%, in the process lifting half of its 1.3 billion population out of poverty. The Chinese economy grew five-fold in dollar terms from 2003 to 2013, and at $9.2 trillion. China has lifted more than 500 million people out of poverty in the last 40 years.
China is the largest producer of goods and services in the world and wants to find friendly countries to cooperate for mutual benefit.
China Belt and Road initiative (BRI)
There are 197 countries in the world. Since March 2022, 147 countries have joined the Belt and Road Initiative (BRI) by signing a Memorandum of Understanding (MoU) with China.
The countries of the Belt and Road Initiative (BRI) are spread across all continents:
- 43 countries are in Sub-Saharan Africa
- 35 BRI countries are in Europe & Central Asia (including 18 countries of the European Union (EU) that are part of the BRI)
- 25 BRI countries are in East Asia & pacific
- 20 BRI countries are in Latin America & Caribbean
- 18 BRI countries in Middle East & North Africa
- 6 countries are in South East Asia
BRICS
The BRICS alliance that we know today consists of Brazil, Russia, India, China and South Africa – five major emerging economies with over three billion people that account for over 40% of the world's population and just over a quarter of the global GDP.
Shanghai Cooperation Organization (SCO)
The Shanghai Cooperation Organisation (SCO) is a permanent intergovernmental international organisation.
The main goals of the SCO are strengthening mutual confidence and good-neighbourly relations among the member countries; promoting effective cooperation in politics, trade and economy, science and technology, culture as well as education, energy, transportation, tourism, environmental protection and other fields; making joint efforts to maintain and ensure peace, security and stability in the region, moving towards the establishment of a new, democratic, just and rational political and economic international order.
The SCO currently comprises eight Member States (China, India, Kazakhstan, Kyrgyzstan, Russia, Pakistan, Tajikistan and Uzbekistan), four Observer States interested in acceding to full membership (Afghanistan, Belarus, Iran, and Mongolia) and six “Dialogue Partners” (Armenia, Azerbaijan, Cambodia, Nepal, Sri Lanka.
As I mentioned above, China wants to develop friendship and cooperation with as many countries as possible for mutual benefit. Moreover, all these countries want to take the advantages of using their own currencies to trade among themselves. As a result, the US will lose its advantage of printing more money. Inflation in US is highest in the last 40 years:
USA is so much different from China. After the 2nd world war, US has bombed 33 countries as listed below:
1. China 1950- 1953
2. Korea 1950 - 1953
3. Guatemala 1954
4. Indonesia 1958
5. Cuba 1959 -1961
6. Guatemala 1960
7. Congo 1964
8. Vietnam 1961- 1973
9. Laos 1964- 1973
10. Guatemala 1967-69
11. Cambodia 1969-70
12. Grenada 1983
13. Lebanon 1983, 1984
14. Libya 1986
15. El Salvador 1980s
16. Nicaragua 1980s
17. Iran 1987
18. Panama 1989
19. Iraq 1991
20. Kuwait 1991
21. Somalia 1993
22. Bosnia 1994, 1995
23. Sudan 1998
24. Afghanistan 1998
25. Yugoslavia 1999
26. Yemen 2002
27. Iraq 1991-2003
28. Iraq 2003-present
29. Afghanistan 2001-present
30. Pakistan 2007-present
31. Somalia 2007-8, 2011
32. Yemen 2009, 2011
33. Libya 201
US has 750 foreign military bases; they are spread across 80 nations! After the U.S is the UK, but they only have 145 bases. Russia has about 3 dozen bases, and China just five. This implies that the U.S has three times as many bases as all other countries combined. As a result, average annual GDP growth rate is only about 2% while China has an average of 10%.
US military budget is US$ 773 billion.
China has overtaken US - Koon Yew Yin
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www.worldeconomics.com
