Sunday, April 10, 2005
China: Closer to Being the World's Largest Economy than Most People Realize
By my calculations, it will not take long for China to become the largest economy. Using the official figures, and assuming that U.S. annual economic growth is 3%, China would have to grow at about 6.3% per year for its population to achieve one-quarter of the U.S. per capita GDP. At that level, since the Chinese population is 4x that of the U.S., it would exceed the total size of the U.S. GDP in twenty years. China's most recent growth rates are between 8% and 10%; it may happen sooner.
Today, China called for collaboration with India in information technology. (WSJ; subscription required) http://online.wsj.com/article/0,,SB111314988859802835,00.html?mod=home_whats_news_us