China has overtaken Japan to become the world's second-largest economy

[KissMy]

China has overtaken Japan to become the world's second-largest economy

The fruit of three decades of rapid growth that has lifted hundreds of millions of people out of poverty.

Depending on how fast its exchange rate rises, China is on course to overtake the United States and vault into the No.1 spot sometime around 2025, according to projections by the World Bank, Goldman Sachs and others.

China came close to surpassing Japan in 2009 and the disclosure by a senior official that it had now done so comes as no surprise. Indeed, Yi Gang, China's chief currency regulator, mentioned the milestone in passing in remarks published on Friday.

"China, in fact, is now already the world's second-largest economy," he said in an interview with China Reform magazine posted on the website of his agency, the State Administration of Foreign Exchange.

 

[martybegan]

China has overtaken Japan to become the world's second-largest economy

The fruit of three decades of rapid growth that has lifted hundreds of millions of people out of poverty.

Depending on how fast its exchange rate rises, China is on course to overtake the United States and vault into the No.1 spot sometime around 2025, according to projections by the World Bank, Goldman Sachs and others.

China came close to surpassing Japan in 2009 and the disclosure by a senior official that it had now done so comes as no surprise. Indeed, Yi Gang, China's chief currency regulator, mentioned the milestone in passing in remarks published on Friday.

"China, in fact, is now already the world's second-largest economy," he said in an interview with China Reform magazine posted on the website of his agency, the State Administration of Foreign Exchange.

Impressive but less so considering the population differences between the countries. This implies an inefficency in the Chinese Economy that could become trouble if not corrected.

 

[KissMy]

Impressive but less so considering the population differences between the countries. This implies an inefficency in the Chinese Economy that could become trouble if not corrected.

What might that be?

 

[martybegan]

Impressive but less so considering the population differences between the countries. This implies an inefficency in the Chinese Economy that could become trouble if not corrected.

What might that be?

Well the US economy is bigger with less people. Japan's was bigger with much less people. This implies some sort of inefficencies on a per capita basis.

I am not a student of Enconomics but more people to me should = bigger economy if each one was equally efficent.

 

[william the wie]

Impressive but less so considering the population differences between the countries. This implies an inefficency in the Chinese Economy that could become trouble if not corrected.

What might that be?

Well the US economy is bigger with less people. Japan's was bigger with much less people. This implies some sort of inefficencies on a per capita basis.

I am not a student of Enconomics but more people to me should = bigger economy if each one was equally efficent.

there are at least three inefficiencies:

The state still largely determines where investments can go.

The industrialization of agriculture is being held back by population policies.

Internal leverage was so high in the 1990s that such data is no longer published. The guesses I hear and read are that internal leverage as a percentage of GDP is 2-5 times the US ratio of 324% of GDP (That is total debt public, private and corporate). Also China has its own unfunded liabilities problems.

This is not good.

 

[hipeter924]

What might that be?

Well the US economy is bigger with less people. Japan's was bigger with much less people. This implies some sort of inefficencies on a per capita basis.

I am not a student of Enconomics but more people to me should = bigger economy if each one was equally efficent.

there are at least three inefficiencies:

The state still largely determines where investments can go.

The industrialization of agriculture is being held back by population policies.

Internal leverage was so high in the 1990s that such data is no longer published. The guesses I hear and read are that internal leverage as a percentage of GDP is 2-5 times the US ratio of 324% of GDP (That is total debt public, private and corporate). Also China has its own unfunded liabilities problems.

This is not good.

The forth is massive government corruption basically bottom up corruption, with all the officials offering bribes to each other and covering up inefficiencies.

 

[Oddball]

China has overtaken Japan to become the world's second-largest economy

The fruit of three decades of rapid growth that has lifted hundreds of millions of people out of poverty.

Depending on how fast its exchange rate rises, China is on course to overtake the United States and vault into the No.1 spot sometime around 2025, according to projections by the World Bank, Goldman Sachs and others.

China came close to surpassing Japan in 2009 and the disclosure by a senior official that it had now done so comes as no surprise. Indeed, Yi Gang, China's chief currency regulator, mentioned the milestone in passing in remarks published on Friday.

"China, in fact, is now already the world's second-largest economy," he said in an interview with China Reform magazine posted on the website of his agency, the State Administration of Foreign Exchange.

Impressive but less so considering the population differences between the countries. This implies an inefficency in the Chinese Economy that could become trouble if not corrected.

Market inefficiencies correct themselves, when left to do so.

 

[Neubarth]

China has overtaken Japan to become the world's second-largest economy

Impressive but less so considering the population differences between the countries. This implies an inefficency in the Chinese Economy that could become trouble if not corrected.

Market inefficiencies correct themselves, when left to do so.

Three fourths of China is as poor as Guatemala. It is rural and many people live in tremendous poverty on the land. Thus China has a very large population of 1.3 Billion, but only a small fraction of those people are working in manufacturing.