Article written by Dr Ajay Kumar chairman and Managing director of Fox petroleum
Economist says- China is a power economy. China claims the same.
Economist certifies, “United States is the Power House of Economies”.
US and China are the two largest economies of the world whereas US have merit in his audited report and China has a sci-fi economics under doubts, the two countries trade and invest globally with geo-economic influence in every region. Geo-economic influence investment means money earthed to the country has to oblige the investor at World Forums and become good will asset for their military establishment when in need, but loan will remain intact as per agreement.
US has the world’s largest GDP, while China has the top GDP based on purchasing power parity (PPP), the two countries have similar territorial extension but different size in terms of population. Let me explain figuratively, China’s nominal gross domestic product (GDP) is $13.41 trillion, making it second to the United States, but its GDP based on purchasing power parity (PPP) is $25.27 trillion, exceeding that of the United States. But all these GDP game goes in flush, when we see US per citizen expenditure is equals to 13 Chinese people. Then I doubt calculation of the above figures. As, I doubt, purchasing power of Government of China is high because, it is not declaring debts included in that money. One can rob everyone’s money or compromise every citizen’s money to show the strength. That has been done in India by demonetization, which forced people to deposit money in the bank into formal economy to be counted not accounted.
Washington and Beijing have signed double tax treaties, free trade agreements, and regional partnership agreements with most of world’s nations. China, US and the World is focusing on macroeconomic data on trade between Beijing, Washington and other countries in every continent. My study highlights main business partners, trade agreements and future economic trends for investors interested in China and global market is not steady and ready for China.
Comparing US to China n Business and product is only the factor that discredit China is “no reliability of product quality”, “no reliability of contract terms” and “unreliable hidden agenda” but in case of US it has been seen very less. Becoz US is auditable and China is un auditable and biased accounting system. China is not answerable to his Government setup. US lawmakers are answerable to his citizen.
There is increasingly loud speaking of China surpassing America in raw economic size within the next decade, or, adjusting for purchasing power, as soon as this year. Some of these claims are plainly inaccurate, most are misleading, and all are potentially harmful. And having no basis or spotted facts to prove China nearby equals to United States. Chinese economics is more or less a hoax. Chinese GDP’s adulterated version has been propagated by some economist with having mastery in data juggling, must be having ulterior motives or benefits forced them to say that. Why Former Prime Minister of India Dr Manmohan Singh was not impressed with Chinese economy, but yes he is impressed with United States monetary capacity.
The Chinese GDP and Purchasing Power claims contribute to false impressions about the future of the Asia–Pacific region, even the world as a whole. Sensitivity of China’s economic strength and importance underline its global presence, from its own borders to sub-Saharan Africa and Latin America. A deeper look, though, shows that the People’s Republic of China (PRC) is still far smaller and poorer than the U.S. on the most important economic dimensions, so its true global weight is correspondingly limited. United States is far in height compared to China.
The United States Economy can buy world’s top 10 Economies. The U.S. has a huge economic advantage that should last for several generations for U.S. Citizens, at least. The best strategy to compete with the People Republic of China (PRC) consequently begins with getting the American house in order—and in doing so, the U.S. should absolutely not imitate the Peoples Republic of China (PRC). A battle with Beijing over which government can intervene in its economy more is doomed to failure and comes with ugly drawbacks that have been lost in China hype. It is over, and more down after Biological Warfare use by China against the world economy.
In fact, Chinese investments are all in “Red Zone” and in “Red”. What I mean to say is the investment which is as good as smoke in the air a non recoverable investment. It means, Chinese hype of GDP and Purchasing Power is under red. It is negative. It is propaganda flared by economists. America can and should win the economic competition with easy discharge of China from America, and replacement is well qualified country is India. However, United States need not hope for China’s failure as China will be under doubt for two decades and isolated due to COVID-19 attack. An economically weakening or stagnant China hurts the rest of the world, but it can recover by alternatives like India and Africa market. In contrast, a China on a more sustainable course benefits everyone, including the U.S. but very unreliable, which is not good for the world. WE are facing this at this moment, in the name of cheap products, he is making world habitual. This ishis purchasing power I guess.
While PPP is a step in the right direction in principle, there are multiple pitfalls. For economies as large and diverse as those of America and China, differences in purchasing power within each country are huge. It is almost meaningless to find an average price for all of the U.S. or all of China. Perhaps even more important in comparing two economies, PPP changes over time. Because prices change at different rates in different places, purchasing power comparisons made at one point can be quite misleading just a few years later, and even more misleading when projected forward in time.
Conclusion: An average large size American Company has worked almost two decades to become number. And Chinese by purchasing two percent equity of it becomes the one of the owner of that Company. This is how Chinese set propaganda that they are the largest economy and super power, whereas Chinese 23 percent populations has still no homes, no jobs, no foods and “no authority to raise their voice”. One of the most surprising developments resulting from the current financial crisis is the belief among ordinary Americans that China has become the world’s leading economy. This view appeared in the roughest times of 2009 also and has persisted even though the impact of the crisis has begun to ebb. U.S. media have frequently conveyed the same belief. But it is patently absurd. Bu facts and figures show that China has never been number two economy. And, militarily too, U.S. is on top. U.S. needs to indentify the replacement of China very sincerely and with trust worthy partners.