It was imminent

I heard on the news today that China just surpassed the US as the World's largest economy.

What do you think of that?

http://www.businessinsider.com/china-overtakes-us-as-worlds-largest-economy-2014-10

Think, that would be a foreign concept to many here much less about a subject beyond the capabilities of even more.

So just what are you trying to imply? The data was released in early October by the IMF, so is there any understanding of the data?

Are you speaking of the GDP or PPP or just repeating a rumor?

11000+ Walmart stores world wide, filled with fine, high quality merchandise, from China.
Sure...that would do it.

Well, they have 4 times our population and a lot of cheap labor so it was bound to happen eventually. The difference is we are an innovative country. Quality of quantity lol.

US ppp has been declining for decades while china grew

but with only gdp , us is still leading,,,,

but no one stays on top indefinitely,,,,so it wont be a shock if and when US no longer is

China Moves Into First Place for Output (But It's No Big Deal)



December 4, 2014Ryan McMaken


MarketWatch declares today: "It's official: America is now No. 2".

That is, the US is, according to the IMF, the second-place country when measured in "national economic output in real terms of goods and services." Given that China has well over three times as many people as the United States, one should really be asking "what took so long?" The fact that China hasn't been in first place for decades is just a testament for how horrible under-developed that country has been for a long-long time.

With more than a billion people, China should have an economy that is much, much larger than the US economy, but since worker productivity is so low there, they've not just caught up with the US. Of course, a far more useful measure of an economy is arguably the per capita GDP or the purchasing power parity measure. And in this, the United States ranks near the top, but is certainly not in first place. Excluding the oil rich dictatorships which are populated largely by temporary foreign workers, most of the countries that top the list of per-capita output are small countries like Switzerland and Norway, plus the microstates like Luxembourg and San Marino. Depending on which list you use, you'll also find Hong Kong, Macau, Singapore, and Austria near the top of the list. China is far down the list.

For all the buzz about how well the Chinese are doing, German-speaking countries still have highly-impressive track records, and the Americans are hanging in there. Some eastern European countries like Estonia and Slovakia have made impressive gains, thanks to rapid moves toward more free markets in recent years.

China, which doesn't exactly have a strong track record of long-term political stability, may or may not continue to top the world's ranking over overall economic output, but it's a waste of time either way to treat other countries as if they're competitors in this. Americans have benefited immensely from increases in worker productivity in China where factories have replaced rice paddies as major drivers in the economy. This represents real wealth creation, and combined with trade, it increases our wealth too.* As Frank Shostak has pointed out in numerous articles, real wealth creation comes from increasing the means by which people can achieve their goals for themselves, whether that involves wearing a warm sweater or watching television. Wealth creation and capital accumulation, no matter where it is, if accompanied by trade, increases our own wealth here at home. Sounding the alarm because China has become "number one" reeks of mercantilist folly.

*. Well, at least SOME of it is real wealth creation, but you'd have to exclude the parts that are bubbly malinvestments driven by central-bank driven credit expansion.

http://mises.org/blog/china-moves-first-place-output-its-no-big-deal

At the end of the day many people (including myself) luv and work hard towards the American Dolla

I work in China, just finished up a 13 month project there. Been conducting business there for the last 15 years.

Everywhere you look in China all you see is construction. New highways, New towns, new cities, new railways, new airports, communication ect. ect. The Chinese have been taking all of the western money and investing it in their infrastructure and growing at a incredible clip. McMansions popping up all over the place the last 10 years.. all on western money.

But

The tide is turning, labor and raw material costs are and have been rising.Steamship costs as well..( actually steamship, customs & port surcharges are out of control) Chinese factories are already outsourcing the Viet Nam and other Asian countries because of rising internal costs AND some western companies are already bringing their manufacturing back home as it just does not make financial sense to continue making some items there anymore.

The U.S. is being aggressive with tax and grant & port incentives to bring business back. I know this first hand because I am working with a few states to do just that. And they want the business and are working extremely hard to bring it back. And I know of others in my industry who are doing the same.

It is a evolution, made in Taiwan, made in Japan, Made in India, Made in China, Made in____

Some industries are lost for good.. some will come back and some will shift to other countries. China will always produce product for western countries to a certain extent but there is a shift taking place. It will not be a fast shift.. it will take 10 -15 years but it has started and I feel that jobs will eventually start coming back.. where they belong.

Other then that the chinese govt. is very supportive of its people unlike africa where i come from, and china is investing heavily (multi million dollar investments) globally.....and the chinese have started flooding all over the world.....where i come from in africa theres a lot of chinese coz of huge business potential, natural resources and a booming economy thats growing rapidly.
where ever u go in the world you will find an abundance of chinese....

your absolutely correct. The factory owners ( who made /and continue to make millions) are investing that money outside of China. In real estate, land, businesses, and investments. Not only in western countries but also in places like Russia and other Asian countries.

They know the manufacturing bubble will eventually slow down or burst and they are moving their money.

Many times when I catch the flight out of Shanghai, there are many well to do Chinese on board heading for N.Y.C... To go shopping.

Good post!

My friend's company opened a plant in China and he had to manage it. I had visited China some years ago so we have plenty of dumpling stories to swap.

The Chinese gov't is very protective of the jobs and often give instructions on hiring and firing (which are mostly ignored). Enormous investments are being made into the Chinese infrastructure but not social welfare. The Chinese apparently take care of their family members pretty well.

In addition to the infrastructure spending, China is buying up resources all over the world including Africa and Afghanistan. It does make one wonder why the US is doing so little in these areas.

... gives.. Chinese take out, a whole new meaning...lol

Every second person on earth will be chinese soon

Does indeed!

Or Indian!

S**t happens, it's been on the cards for a long time. Gotta move with the times. Just wait til they start calling in the debt that you owe them though? Then things will get tough!

Or African

Your right.

The Government certainly dictates the job environment to the extent of actually setting the pay scales. They dictate everything in China... everything. On this recent trip I worked, lived, ate alongside my Chinese colleagues in a small village. Life was tough.. almost unbearable( by our standards).

The social welfare takes a backseat to the growth of the country. That is for sure.

The Chinese do in fact take great care of their families. It is their number 1 priority. The factory workers live at the factories they work in.. in dorms... they are basically concrete bunker type rooms. 4-6 workers per room...in bunk beds. community showers, community hot water( outside)..clean you cloths in a bucket and hang them up on the roof..and a canteen that serves 3 meals a day...(a very hard life).

They live in these factories which are 1000's of miles from their home villages. They take practically their entire monthly pay and send it home to their families living in their remote villages. The workers sacrifice for their families. It is expected.. and done.. without question or complaint.

The elderly in China are cared for by their families, they are respected and honored. In my opinion, the entire world could learn a lot about caring for our elderly from the Chinese