China has strongly resisted a claim by the World Bank that is had surpassed the economy of the US in PPP terms. Just a matter of time, says economist Arthur Kroeber. China will have to accept it will be the largest, he says in Radio Free Asia.
Radio Free Asia:
But others say it shouldn’t come as a surprise that China would soon overtake the U.S. in sheer economic size.
“If one doesn’t accept the current PPP conversion rate, then just wait five or ten years and China will be bigger at market exchange rates,” said Arthur Kroeber, Managing Director of GaveKal Dragonomics, an independent global economic research firm, and Editor of its journal, China Economic Quarterly.
“But basically, all that this shift tells us is that China has way more people than the U.S.— 4.2 times as many, to be exact. So, as soon as China stopped being fantastically poorer (per capita) than the U.S., and became simply a lot poorer, its total economy surpassed that of the U.S.”