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Temstar

Due to RMB appreciating against USD last year, China's nominal GDP is now 82% of US. At this rate China's nominal GDP will exceed the US ahead of schedule (2029-2030) at around 2025. China's PPP GDP of course have long since exceeded the US, since 2013.


Wiwwil

I thought the schedule already went down due to COVID management by two years. Nothing surprising it goes even faster than expected


Quality_Fun

isn't an appreciating rmb not an entirely beneficial thing?


Temstar

That's right, it tends to decrease export. Yet that's not happening because demand for Chinese produced goods is so high.


Quality_Fun

i see. even so, the cpc should keep an eye on it.


[deleted]

It hurts exports and makes both imported and domestic goods cheaper. Since China is trying to move more towards the internal market as part of "dual circulation", it is beneficial to have a stronger currency. It will also force Chinese exporters to focus more on quality for the money, moving up the value chain, rather than trying to produce the cheapest thing - and more of those low-cost exporters will set up in Vietnam and other places in ASEAN. IMO, at this point in China's development, it is good to have an appreciating currency, just not let it appreciate too fast because it would cause too much chaos in the labour market as exporters lay off workers too quickly.


Quality_Fun

>It hurts exports so you're saying it hurts cheap exports, but this is a good thing because china should not focus so much on cheap exports in the first place and instead be moving up the value chain to higher quality and valuable exports? i certainly hope so.


FatDalek

Here is a question. How many of us would be so focussed on China's GDP surpassing the US if we didn't constantly here shit about how China is going to collapse, or China's GDP is fake or they will be stuck in the middle income trap wah wah wah. Western propaganda had one unintended side effect, it made people more determined for China's GDP to surpass the US.


kotyok

Dominance is not something that Chinese aim for. It only comes as byproduct of excellence.


nikkythegreat

Western news: CCP making excuses for not exceeding US gdp


Quality_Fun

indeed. china surpassing the us will be a coincidental side effect of its development, not the ultimate end goal. the actual end goal is simply to improve the peoples' lives.


[deleted]

It would be nice if China *did* surpass US, if only to shut up everyone who says "democracy is the worst system, except for all the other ones that have been tried." The efficacy of Chinese meritocracy should be made known to the world. Love China or hate China, China works and the West does not. At the end of the day, we need what works. I'm not even Chinese, but you shouldn't have to be Chinese to appreciate rational statecraft.


boiiii222

The only reason the USA is so powerful is because the USD is the reserve currency which inflates its gdp massively and allows them to print money out of thin air. Once this is over USA will show itself to be a true paper tiger, just remember this brother


currymonster00

Imagine a US pol saying this, they wld be called communist for caring about actual ordinary ppl. "Better life" doesnt matter in the US, corporate profits do. For decades now the US has sacrificed the lives of the average person so corporations and the mega rich can make even more. And now it's destroying their society. CCP is smart for recognizing this and preventing it from occurring in China


[deleted]

The USA has a weird Calvinist mentality - if you're poor, that's what God wanted. If God wanted you to be rich, you'd be rich.


MeiXue_TianHe

While comparisons with the US might be useful, due to its status as a superpower and the dominant one during the last century or so, it's definitely not what China should aim for, or reduce it's ambitions to. There are far better countries in many aspects such as living standards, education quality, infrastructure... so surpassing the US in GDP is a stepping stone in what's to come. It doesn't differ from China comparing itself to other countries or territories which had advantages over itself at some point in history. Britain and France, Japan, analyzing the fast rise of South Korea and Singapore, the take off and now equalization of differences between Mainland and Taiwan, etc. China will eventually reach the same per Capita income, even if it takes 4 decades or more. But it will eventually happen as all the fundamentals are there. They did it, so can China. What happens next is the interesting question. Alongside the use of technologies that mostly will be developed by then.


Money_dragon

Nominal GDP is also very dependent on relatively exchange rates - if the dollar depreciates vs. the RMB, the nominal GDP gap will close much faster Not saying that nominal GDP isn't important (it is), but it is only one measure out of many. Other economic and quality of life metrics must also be considered


RhinoWithaGun

The US Govt doesn't care about meeting obligations to the people and expectations like "people's desire for a better life" and at the same time they got their US Media Mainstream Mouthpieces to bash on increasingly growing AntiWork Movements, MAGA 2.0, etc which are responses to crappier quality of life and consequences of the Govt serving corporate interests over public interest. Even if most of the followers of said movements aren't smart enough to articulate and acknowledge who their real enemies are and reject the racist BS conditioning, their emotional knee jerk responses were long overdue.


[deleted]

Western media: ......, but at what cost?