China’s economy will overtake US?

China’s economy has been expanding very rapidly. The size is going ahead of Japan now. US is wondering if would be overtaken by China one day in the future. Japan is no more the second largest economy in the world. China, a new upcoming country with great potential, has been replaced in the position. China’s economic growing is at high speed. The country accomplished great changes in a short period of time. This worries US so much that they are afraid that the country can be the second to be chased.

It will be not easy to ignore China’s growth. According to IMF, however, for China to catch up with US’s economy, they will have to motor their speed. Last year while China Gross Domestic Product (GDP) reached $5.4 trillion, US recorded $14.8 trillion. It is three times bigger than China’s economy. Jay Brison, an international economist at Wells Fargo, once said, “we have nothing to fear at all. Twenty years is an impossible term for them to catch up with us,” he said.

If China has planned to enhance their economy than US, their development would have to keep as high as twelve per cent when US’s remains low at two per cent. However, since it is unrealistic for both countries to stay that far low and far high, it is difficult to predict at the moment how the two economies will develop in the future.

The second factor that is an obstacle to China’s economic growth in the future is their overpopulation and elderly people. Because of their one-child policy their workforce is weak, reported an economist. This tells us what their living standards would be like in the future. This tells us that China will not be able to grow in the future as fast as they used to in the past.

With this troublesome character of China, India would take over the post of China with great potential, said Mr. Hawksworth. In two years India will occupy the third place of economy. Once more Japan would have to lose its current position to India. India will run fast with an abundance of their promising youngsters, which lacks in China, he said.

However, prices in developing countries are lower than in developed countries. Therefore, the income of underdeveloped countries may be underestimated, compared to that of advanced countries. According to a recent study Davis, an economist in university of California, foresees China’s economy will grow as big as that of US as early as in 2014.

http://www.chinadaily.com.cn/thinktank/2011-06/04/content_12641015.htm
http://www.csmonitor.com/Business/2010/0816/China-economy-will-surpass-US-but-when