China Socialist Empire has grown enormously strong since 1949 and many are wondering if this mighty economic giant will surpass the United State in the near future.
The rise of China economy is startling, consider that China hold the number three spot in power on the world stage next to Russia, which include the number one ranking GDP, which has surpassed the United State plus its transparency and influences are increasing, therefore, it is impossible not to be aware of its presence. Furthermore, the Yuan has become the third reserve currency next to the US Dollar and Euro.
The Chinese Yuan is as a strong contender against the US Dollar since they want to enforce more control over their economy, there is a push to make sure that their system of money become globally accepted. This drive may be to cement itself, as the best replacement of the US Dollar as the universal currency. The recent news that Venezuela is now selling oil for the Yuan instead of the US Dollars doesn’t sound so good, plus rogue countries that are suffering under a sanction imposed by the west are using the Yuan as a tool for survival. Furthermore, the number of countries with close ties to China have been conducting their trade and investment under the radar with the Yuan, they are Russia, Germany, Sweden, Malaysia, Australia, Indonesia and Canada.
Today 1.3 billion citizens of China are experiencing a better standard of living and many have risen to prominent status, recognition, and power. Its strong growth has increased the number of self-made High Net Worth Individuals and they have overtaken the United State with the most Billionaires at 637 to the United State 342. Their Diplomatic Public Relation skills that are utilized seem to have made a big impact with other countries far and wide, which has made it become one of the most favorable country today.
Meanwhile the United State seems to resemble a shadow of its former self, even though it still wield external economic and military might, however, its influence and respect seem to have gone warm and its image has suffered a steep decline among its allies, plus its favorites is at all-time low in countries such as Africa, Asia, Europe, Latin America, and North America. The American Dream appears to be fading due to the decline of the economy, and its prospect become difficult for the youth of today to access a better standard of living than their parents of former days, according to an article published in Eureka Alert, by the America Association for the Advancement of Science. Meanwhile the Pew Research Center, state that, there are few adults in the middle and upper-income bracket, but there are more occupying the lower class.
Today international investors are becoming more concerned about where they place their investments.
They observe that Washington has not yet passed a budget, nor enforce credible action to pay down their creditors’ bills. Which is viewed as an unsafe heaven for investment and that is not good. Lately, the United State has been conducting financial sleight of hand by moving money around in order to ensure that they do not run out of cash. They have borrowed approximately $19.8 trillion, where one third of this amount is owing to itself, $6 Trillion from Major Foreign Holder of Treasury Securities, which include foreign countries, companies and individuals, $1.1 Trillion is owed to China and the same amount to Japan plus the balance of US citizens and business include local and state Government. It’s still an amazement to see that the International Credit Rating Agencies, Moody and Fitch gave the United State as three “A’s” credit rating, while S&P gave an AA+.
Moody the International Credit Rating Agency has downgraded China credit rating to A1 for the first time in three decades, this is seen as a setback and this action has angered them, meanwhile S&P and Fitch rated China A+. China economy has surged up for the past 18 years but seem to be cooling down slightly, but in spite of all this, it is still seen as a favorite place for investment than the United State include most countries today.The economic outlook for China remain stable for 2021.
Recent news coming out of China, state that during 2021, there will be a move to ensure that a more sustainable and in-depth way is utilized in order to increase high-quality development that will enrich global prospect, according to the Chinese President at a high profile meeting. This move will be enforced to transform in a more intensive way in order to deliver more prosperity for both China and aboard. This is the news investors love to hear.
Even though the USA has the most term of national wealth and China has the most GDP, they both share a relationship as economic partner and potential adversary. There have been periods of open conflict between both nations, but the relationship has remain stable.