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According to the latest report of PricewaterhouseCoopers (PwC), China could be the world's largest economy in purchasing power parity (PPP) terms by 2050, with India in second place and the US in third.|
A recent article on Global Time belivebes that China could overtake the US in the future, as long as it seizes the opportunity to strenthen its domestic issues in 2017.
'China has achieved great success in bolstering its economy's growth and now the country contributes more than one-third to world economic growth. An inevitable result of China's rapid rise will be subtle changes in the global power structure, although it will be a very slow process. '
'The country has to remain vigilant and avoid getting sidetracked due to sweet talk or compliments. PwC's report said that China has already overtaken the US to be the largest economy based on GDP in PPP terms. This sounds like exciting news for the Chinese economy. However, there has been much controversy over how much faith can be placed in the accuracy of the PPP model which calculates GDP by using exchange rates and takes into account price differences of the same goods between nations, as China's GDP in PPP terms conducted by different organizations yields different results.'
'Even if China has surpassed the US by economic scale in PPP terms, we should note that China's overall economic strength still lags behind the US. People should be aware that the country is still considered a developing country if they look at other criteria such as GDP per capita.'
'China should remain sober and work on solving its economic problems, which range from a widening income gap to local governments' massive debt. Additionally, the current economic downward pressure heightens the need to further step up supply-side structural reforms and economic restructuring.'
'It is unlikely that countries like China and India will replace the US anytime soon. Developing countries will have a more active voice as global economic power shifts to emerging economies. Meanwhile, the world economy may suffer a serious blow if the US pulls out of globalization. To prevent that from occuring, China and the US will have no choice but to cooperate.'
Other reviewers also agree that China should focus on domestic priorities, and are looking forward for a peaceful relationship between China and the US. It may be the best of both.
But there are also some worries. Trump's style of dealing issues is such an uncertainty, Chinese reviewers still not sure if he sees the reality. Anyway, he has no alternative other than maintaining complicated interactions with China, just like the choice of strengthening its alliances in East Asia.