What matters more to China is China is already the world biggest trading nation, export nation, surplus nation, industrial nation, agricultural nation, manufacturing nation, mining nation, shipping nation.. how about US, What US still has other than an inflated GDP number by hyper inflation and bloated stock market?
Competition is good for everyone, especially consumers. Hope what your saying is true.Even this is changing really fast
China tops Global Innovation Index 2023
China tops Global Innovation Index 2023 Global Innovation Index shows China overtaking US on number of leading clusters, but UK impresses on intensive smaller clusters September 20, 2023 John Morgan Guangzhou China has overtaken the US in hosting the largest number of leading science and...pdf.defence.pk
China's GDP relies on manufacturing and high-tech. The US GDP relies on finance and exchange rates...
Here comes the logical question.
We all know that xi is a pig is a dog.
To promote US dollar debt.
Was about to waste twenty minutes to type this but then I realized that would be twenty minutes of my life I’d never get back lolThe Yuan was around 6.3/USD in 2012.
Again, the fall in share of nominal GDP is only temporary due to much higher inflation in the US and a strong USD due to interest rate hikes, not due to fundamental higher real GDP growth. You're not going to rely on a depreciating Yuan and red hot inflation to outpace real growth in the long term.
The Yuan is not going to depreciate 10% every year and hit 15 Yuan/USD by 2030 or whatsoever.
Japan is in a huge price bubble back in 1995 which affected their competitiveness in international markets.
Japan's nominal to PPP ratio is around 1.9 at its peak in 1995:
View attachment 955558
Which means, price levels in Japan was around 1.9x of the US's back in 1995. For comparison, currently Bermuda has the highest PPP ratio at ~1.2x.
View attachment 955575
After decades of deflation/currency depreciation, Japan's price level relative to the US has dropped from 1.9 in 1995 to about ~0.7-0.8 in recent years, on par with other developed countries like Germany and France. So deflation in Japan is more like 'normalization' of its price levels relative to the rest of the developed world.
OTOH, China's nominal to PPP ratio is around 0.6. How much 'cheaper' can it get?
View attachment 955562
You can't just plonk Japan's past experience to China without understanding what other fundamental factors are at play. Japan is just too expensive relative to the rest of the world back in 1995, and decades of deflation/depreciation is actually just a normalization of Japan's price levels. It's different for China, which currently has a PPP ratio of ~0.6.
You must be inhaling copium if you think the US can remain its ~$7tril lead simply by getting more expensive or that China will get cheaper every year to make up for the difference in real growth rate.
In fact I see China's inflation outpacing other developed countries in the medium term and reach a PPP ratio of ~0.7-0.8 like other developed countries, as a shrinking labor supply pushes up wages and costs. Gone are the days when China has endless supply of cheap labor working in factories. Like the developed countries, it's natural that more of their youth wants to work in a cushy office job as the economy progresses.
The answer is obvious when you just look at basic production and consumption figures. But there is a lot of cope and denial here.
The Yuan was around 6.3/USD in 2012.
Again, the fall in share of nominal GDP is only temporary due to much higher inflation in the US and a strong USD due to interest rate hikes, not due to fundamental higher real GDP growth. You're not going to rely on a depreciating Yuan and red hot inflation to outpace real growth in the long term.
The Yuan is not going to depreciate 10% every year and hit 15 Yuan/USD by 2030 or whatsoever.
Japan is in a huge price bubble back in 1995 which affected their competitiveness in international markets.
Japan's nominal to PPP ratio is around 1.9 at its peak in 1995:
View attachment 955558
Which means, price levels in Japan was around 1.9x of the US's back in 1995. For comparison, currently Bermuda has the highest PPP ratio at ~1.2x.
View attachment 955575
After decades of deflation/currency depreciation, Japan's price level relative to the US has dropped from 1.9 in 1995 to about ~0.7-0.8 in recent years, on par with other developed countries like Germany and France. So deflation in Japan is more like 'normalization' of its price levels relative to the rest of the developed world.
OTOH, China's nominal to PPP ratio is around 0.6. How much 'cheaper' can it get?
View attachment 955562
You can't just plonk Japan's past experience to China without understanding what other fundamental factors are at play. Japan is just too expensive relative to the rest of the world back in 1995, and decades of deflation/depreciation is actually just a normalization of Japan's price levels. It's different for China, which currently has a PPP ratio of ~0.6.
You must be inhaling copium if you think the US can remain its ~$7tril lead simply by getting more expensive or that China will get cheaper every year to make up for the difference in real growth rate.
In fact I see China's inflation outpacing other developed countries in the medium term and reach a PPP ratio of ~0.7-0.8 like other developed countries, as a shrinking labor supply pushes up wages and costs. Gone are the days when China has endless supply of cheap labor working in factories. Like the developed countries, it's natural that more of their youth wants to work in a cushy office job as the economy progresses.
thehill.com
Xi wasn't in the office yesterday, he has been the president for over a decade now, the past decade was argubly the best quality growth period in the Chinese history. his capability as a top leader had long been proved by time.
