China is one of the world’s oldest civilizations with an over 3,000-year written history. She was a global economic superpower as early as the period between 1100 and the early 1800s. Following its conquest by European colonizers and subsequent economic decline in the 19th century, the People’s Republic of China was established in 1949. China has since fully re-emerged as a dominant economic power.
On Oct. 1, China celebrated its 70-year transformation into an economic superpower. It comes as China’s influence on the global economy is projected to expand even more.
Ranking Up China
China’s economic growth has been driven by remarkable changes in policy. Now it has achieved the middle-income status and is touted as the most successful developing country in the world. It is embarking on the path of stronger growth.
According to data from World Bank and the Organisation for Economic Co-operation and Development, China overtook Japan as the world’s second-largest economy in 2010. The Prople’s and has since remained in that position. China’s gross domestic product (GDP) is $14.22 trillion, second only to the United States’ GDP of $21.34 trillion, according to the latest figures published by the International Monetary Fund. Based on adjustment to purchasing power parity (PPP), the Chinese economy has already been the world’s largest since 2014.
The World’s Factory
It is really hard to avoid “Made in China” label on your products today. One important driver behind China’s economic rise was its massive network of factories that churned out everything from toys to mobile phones for consumers all over the world.
China’s entry into the World Trade Organization in 2001 helped it cement its status as the world’s factory and largest trader. In the McKinsey report which analysed 186 countries, China has been the largest export destination for 33 countries and the largest source of imports for 65 them.
India Benching U.S.
In PwC’s World in 2050 report, it was presented an economic growth projection for 32 of the largest economies in the world, accounting for around 84% of global GDP. The global economic power shift away from the established advanced economies in North America, Western Europe and Japan will continue over the next 35 years. It is projected that China to overtake the US in 2028 despite its projected possible growth slowdown. India has the potential to become the second largest economy in the world by 2050 in PPP terms.