beijingwalker
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How Vietnamese netizens talk about China overtaking US and becoming the wealthiest country in the world?
Global Wealth Surges as China Overtakes U.S. to Grab Top Spot
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GumNaam
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but but but...democracy, freedom, what about freedom, it is all about freedom, what about those mooozlayms?!Global Wealth Surges as China Overtakes U.S. to Grab Top Spot
By Bloomberg
15 Nov 2021
That’s one of the takeaways from a new report by the research arm of consultants McKinsey & Co. that examines the national balance sheets of ten countries representing more than 60% of world income.
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“We are now wealthier than we have ever been,” Jan Mischke, a partner at the McKinsey Global Institute in Zurich, said in an interview.
Net worth worldwide rose to $514 trillion in 2020, from $156 trillion in 2000, according to the study. China accounted for almost one-third of the increase. Its wealth skyrocketed to $120 trillion from a mere $7 trillion in 2000, the year before it joined the World Trade Organization, speeding its economic ascent.
Richest 10%
The U.S., held back by more muted increases in property prices, saw its net worth more than double over the period, to $90 trillion.
In both countries — the world’s biggest economies — more than two-thirds of the wealth is held by the richest 10% of households, and their share has been increasing, the report said.
As computed by McKinsey, 68% of global net worth is stored in real estate. The balance is held in such things as infrastructure, machinery and equipment and, to a much lesser extent, so-called intangibles like intellectual property and patents.
‘Side Effects’
The steep rise in net worth over the past two decades has outstripped the increase in global gross domestic product and has been fueled by ballooning property prices pumped up by declining interest rates, according to McKinsey. It found that asset prices are almost 50% above their long-run average relative to income. That raises questions about the sustainability of the wealth boom.
“Net worth via price increases above and beyond inflation is questionable in so many ways,” Mischke said. “It comes with all kinds of side effects.”
Surging real-estate values can make home ownership unaffordable for many people and increase the risk of a financial crisis — like the one that hit the U.S. in 2008 after a housing bubble burst. China could potentially run into similar trouble over the debt of property developers like China Evergrande Group.
The ideal resolution would be for the world’s wealth to find its way into more productive investments that expand global GDP, according to the report. The nightmare scenario would be a collapse in asset prices that could erase as much as one-third of global wealth, bringing it more in line with world income.
Global Wealth Surges as China Overtakes U.S. to Grab Top Spot
Global wealth tripled over the last two decades, with China leading the way and overtaking the U.S. for the top spot worldwide.www.bloomberg.com
explains why no body gives two shits about the so called american "sanctions", no one wants to export to the u.s. as much as they want to export to China!
China isn't India. Chinese people are very logical and dry, caring far more about substance than gaining praise. In fact, when someone is overly showering praise upon you, most Chinese people would be rather suspicious instead of being flattered.
The opposite holds true for India.
aziqbal
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we all know in 10 years this will be fallen down
British Empire built railway 200 years ago and they are still operational
quality is the key not quantity
Beidou2020
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Total dominance by China. US is far behind.
beijingwalker
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Who are "we"?
I do agree that the US is No.1 in science and technology in last couple of decades. But its allies, like Japan, Germany and more recently, Korea and Taiwan, have contributed a lot to the overall dominance of the US. Without their technologies (precise machinery, electronics, etc.), the US would be much less successful, even compared with the Soviet Union. Like them, the US seems not be capable to manufacture extremely complicated parts at industrial scale in a competitive environment (again, in a competitive environment), but has had to import from more capable countries like Japan or Germany and now, Korea and Taiwan.
The two important, key quality to any workforce, i.e. intelligence and workmanship. are not strong in either the US or the Soviet Union. But Chinese workforce has both. What they lack is only experience. For example, even if an Indian or African scientist can invent something extraordinary, to guarantee its success in the market, they may go to China or Japan to manufacture it, certainly not in India or Africa, with their reckless, low intelligent workforce.
Historically, Chinese was the world's leader in science and technology for at least 2000 continuous years, until around early 1700s, much longer than the US or the West. I do not bother to list all Chinese inventions in your daily life, because there are too many. Even vaccination originated from medieval China. However, it did not guarantee the dominance of China in 19 and 20th centuries.
Similarly, anyone with a rational thinking can agree that the dominance of the US in science and technology from 1950 until around 2010 will not guarantee it will continue to succeed in 21th century, especially with its current chaotic political environment and poor education quality.
Will not say China certainly win, but they have much more advantages.
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Shotgunner51
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Patent filings since 1883
From 1883 to 1963, the patent office of the U.S. was the leading office for world filings. Application numbers in Japan and the U.S. were stable until the early 1970s, when Japan began to see rapid growth – a pattern also observed for the U.S. from the 1980s onward. Among the top five offices, Japan surpassed the U.S. in 1968 and maintained the top position until 2005. Since the early 2000s, however, the number of applications filed in Japan has followed a downward trend. Both the EPO and the Republic of Korea have seen increases each year since the early 1980s, as has China since 1995. China surpassed the EPO and the Republic of Korea in 2005, Japan in 2010 and the U.S. in 2011 – and it now receives the largest number of applications worldwide. There has been a gradual upward trend in the combined share of the top five offices in the world total – from 75.3% in 2008 to 85.3% in 2018.
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Shotgunner51
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Yes US has been largest patent filer since worldwide inception of patent system ("Paris Convention") in 1883 until Japan overtook them in 1968. Now US is still second largest patent filer, but over half are by non-residents aka foreign inventors/corporations in US.
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These patent number talking points to justify ideological delusions are pointless to begin with since that just where the patents are filed. It has absolutely nothing to do with the origin and nature of the tech. Just because the inheritor of some mafia drug lords blood fortune throws his money at some pharmaceutica lab on the other side of the planet and registers some patents of his new subsidiary under his companies name, doesnt mean making people addicted to drugs promotes innovation and development. Its just collective ignorance and deliberately being obtuse. Obviously the usual U.S. exceptionalism will project that on everyone else.
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beijingwalker
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Dollars keep depreciating against Yuan, it's about time to topple dollar domination, US just keeps printing dollars and sends inflation going through the ceiling.
Meengla
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So between the end of the Vietnam War (April 1975) and the start of the war in Afghanistan (Oct. 2001) , Americans didn't drain so much natural resources on overt foreign wars; almost three decades of relative disengagement with the world because overt American involvement in Vietnam had already ended before 1975. Even the Iraq war of 1991 was not a drain because of substantial Saudi money. And of course add to the draining of American resources in Afghanistan for two decades, the colossally expensive Iraq War (2003) and substantial involvements in Syria and Libya and God knows where else. All those three decades, while America was draining its resources of various types, China continually and peacefully grew. The untold trillions America spent on wars in those decades could have made America even more prosperous, the money would have remedied the climate change damages, and would have lifted billions of people out of poverty in the world...
History may judge Osama Bin Laden to be China's Best Friend, even if his was indirect help!
History may judge Osama Bin Laden to be China's Best Friend, even if his was indirect help!
beijingwalker
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China overtakes US in national net worth to grab top spot
Nikkei
December 19, 2021 9:55 AM
BEIJING: China’s net worth reached US$120 trillion in 2020 to overtake the US’ US$89 trillion as a red-hot real estate market drove up property value, according to a report by McKinsey Global Institute.
McKinsey’s report covered 10 countries that account for 60% of the world’s income. The total net worth for the group tripled from 2000 to US$510 trillion.
China’s net wealth – the value of total assets minus liabilities – rose by a factor of 17 from US$7 trillion two decades earlier. The country accounted for 23% of the total in 2020, while the US’ share was 17%, followed by Japan, which accounted for 7%, at US$35 trillion.
The 10 countries also include France, Germany, Canada, Australia, the UK, Mexico and Sweden.
The report shows China first surpassing the US in 2013, with its net worth reaching 130% of the US last year.
Soaring asset prices are behind China’s rapid rise. The average home price in China’s major 50 cities reached 13 times above the average income, according to E-House China R&D Institute. The multiple was 10 in 2015.
Some of the money the Chinese government pumped into the economy as part of the pandemic response flowed into the real estate market.
China does not have a uniform fixed-asset tax or inheritance tax. The low cost of owning properties has prevented people from reselling their real estate, further pushing up prices.
With the belief that real estate prices do not collapse firmly ingrained in the national mindset, average home prices quintupled during the past 20 years. The overall increase was 200% for the 10 countries covered.
Cash-trapped local governments in China have come to rely on revenue from selling the rights to state-owned land to real estate developers.
The only other country that had surpassed the US was Japan, whose share of net worth reached 23% of the total in 1990, one point above the US.
That was near the end of Japan’s highflying property bubble that pushed prices so high that observers remarked that “the price of central Tokyo real estate would buy the entire US.
Japan’s net worth reached 8.3 times its GDP in 1990, just like China’s 8.2 multiple in 2020.
Japan subsequently saw its wealth diminish after the bubble burst.
Chinese President Xi Jinping too has taken steps to rein in property speculation as the public grows increasingly frustrated with high condominium prices in cities.
But sudden market tightening could shake the financial system and cause a long-term economic stagnation.
In Japan, the cap on real estate investment introduced by the finance ministry contributed to the bursting of the bubble.
The Chinese Communist Party during the Central Economic Work Conference from Dec 8-10 signalled plans to modify its real estate investment restrictions. Engineering a soft-landing of the property market is crucial for Beijing’s leadership team.
Nikkei
December 19, 2021 9:55 AM
BEIJING: China’s net worth reached US$120 trillion in 2020 to overtake the US’ US$89 trillion as a red-hot real estate market drove up property value, according to a report by McKinsey Global Institute.
McKinsey’s report covered 10 countries that account for 60% of the world’s income. The total net worth for the group tripled from 2000 to US$510 trillion.
China’s net wealth – the value of total assets minus liabilities – rose by a factor of 17 from US$7 trillion two decades earlier. The country accounted for 23% of the total in 2020, while the US’ share was 17%, followed by Japan, which accounted for 7%, at US$35 trillion.
The 10 countries also include France, Germany, Canada, Australia, the UK, Mexico and Sweden.
The report shows China first surpassing the US in 2013, with its net worth reaching 130% of the US last year.
Soaring asset prices are behind China’s rapid rise. The average home price in China’s major 50 cities reached 13 times above the average income, according to E-House China R&D Institute. The multiple was 10 in 2015.
Some of the money the Chinese government pumped into the economy as part of the pandemic response flowed into the real estate market.
China does not have a uniform fixed-asset tax or inheritance tax. The low cost of owning properties has prevented people from reselling their real estate, further pushing up prices.
With the belief that real estate prices do not collapse firmly ingrained in the national mindset, average home prices quintupled during the past 20 years. The overall increase was 200% for the 10 countries covered.
Cash-trapped local governments in China have come to rely on revenue from selling the rights to state-owned land to real estate developers.
The only other country that had surpassed the US was Japan, whose share of net worth reached 23% of the total in 1990, one point above the US.
That was near the end of Japan’s highflying property bubble that pushed prices so high that observers remarked that “the price of central Tokyo real estate would buy the entire US.
Japan’s net worth reached 8.3 times its GDP in 1990, just like China’s 8.2 multiple in 2020.
Japan subsequently saw its wealth diminish after the bubble burst.
Chinese President Xi Jinping too has taken steps to rein in property speculation as the public grows increasingly frustrated with high condominium prices in cities.
But sudden market tightening could shake the financial system and cause a long-term economic stagnation.
In Japan, the cap on real estate investment introduced by the finance ministry contributed to the bursting of the bubble.
The Chinese Communist Party during the Central Economic Work Conference from Dec 8-10 signalled plans to modify its real estate investment restrictions. Engineering a soft-landing of the property market is crucial for Beijing’s leadership team.
Stranagor
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This had never happened between USSR-US.
