A Comparison Of China And The US Economy
China and the USA are the two leading economies of the world. These two countries are dominating the world economies since the early 21st century. There are two methods to check the dominancy. The first is the nominal method, and the second is purchasing power parity method. The USA is taking over the global economy in a nominal way, whereas china is dominating in the PPP method. China overtook the US economy in 2017 in the PPP method. If we talk about both economies in 2021, the figures are even more interesting.
In a nominal way, the USA is contributing 41.89% of the global economy. On the other hand, China is contributing 34.75% of the total GDP of the global economy in the PPP method. If we compare these figures with Japan and India in both ways, these numbers are high even then. So, the real competition lies between these two countries to become the top economy of the world. This article by a dissertation writing service UK aims to provide a complete comparison of these two economies.
Let's Discuss The Comparison in Detail:
Gross Domestic Production:
The GDP of the USA in 2021 increased by a 13.2% rate. The total GDP of the US economy was $20.94 trillion in 2020. If we talk about China, the total GDP of the Chinese economy in 2020 was $14.72 trillion. After comparing these numbers, we can say that the USA is clearly leading the GDP section of the economy. The Chinese economy is growing with an average rate of 9.27% per year. According to recent figures, the US economy faced a 2.3% downfall in 2020. At the same time, the Chinese economy has a 2.3% positive growth even in the global pandemic. If the US economy keeps on declining for the next few years, the Chinese economy will take over the US economy.
According to the Bureau of Economic Analysis, the USA's total exports were $208.6 billion in 2020. This sector of the economy also witnesses a downfall with a -0.4% rate. If we compare these results with the Chinese economy, then the figures are even shocking. In 2020, the Chinese economy exported $294 billion worth of goods and services. This sector of the Chinese economy grew at a 25% rate. The Chinese economy has been growing with a positive change since 1979. It was the time when the country adopted trade reforms. Currently, China is following an export-led strategy. This trade policy is benefiting a lot to the country.
Inflation is measured with the help of the consumer price index. If the value is high, then it means that country is facing a high inflation rate. In 2020, the inflation rate of the US economy was 1.2%. At the same time, the inflation rate of the Chinese economy was 2.5%. It was a bit high as compared to the previous year. In 2021, China aims to bring this figure down at 1.2%. If we compare the inflation figures of 2020, then China's inflation rate was double that of the USA. Based on the figure, the US economy was leading in this area of the economy.
Gross National Income:
The gross national income of the USA economy in 2019 was 21.69 trillion dollars. At the same time, the Chinese economy's GNI was 23.39 trillion dollars. If we compare these figures, the Chinese economy was ahead of the USA economy. In 2018, the GNI of the USA was 20.95 trillion dollars. At the same time, the GNI of the Chinese economy was 21.62 trillion dollars. If we compare the figures of these two years, the Chinese economy was leading this sector of the economy too. These huge figures are giving an absolute advantage to the Chinese economy. Having these figures in mind, we can say that China can rule the global economy.
It is the rate that tells that how many people are jobless across the country. In 2020, the unemployment rate of the USA was near 8.31%. At the same time, the unemployment rate of the Chinese economy was 3.8%. In 2019, the US unemployment rate was 3.5%, while China's rate was 4.60%. If we compare these figures, we can say that in 2019, the USA had a better employment rate. But, in 2020, China lowered its unemployment rate and overtook the USA. These figures also state that China is again ahead of the USA in this sector of the economy.
In 2020, the total value of the USA imports was $253.9 billion. The total trade deficit of the USA economy was -6.7%. At the same time, the total value of Chinese imports was almost $200.06 billion. The total trade surplus of the Chinese trade was almost $94 billion. If we compare these figures with exports figures, we can say that China was leading the economy. The Chinese economy exported a lot and imported less. At the same time, the USA economy exported less and imported a lot.
Research by a dissertation writing service shows that in 2020, the total amount of the USA's public debt was 26.70 trillion dollars. In 2019, this amount was 22.72 trillion dollars. While China's public debt was 2.4 trillion dollars in 2020. In 2019, this amount was 8,847.19 billion dollars. If we compare these figures too, China was leading the USA economy. The public debt amount of the USA economy is enormous than the Chinese economy.
USA and China are the two major economies of the world. There is always a huge debate about who is the biggest economy in the world. There are two criteria that can help us to check the dominancy of any economy. Those are the nominal method and PPP method. If we talk about these two economies, then the USA is leading in the nominal method. At the same time, China is leading in the PPP method. In this article, we discussed different sectors of the economies. These different sectors of the economy presented a brief overview of both economies. According to the figures, China is the best economy in the above-mentioned sectors.