Not So Fast: Japanese Think Tank Predicts China’s Economy Will Not Overtake the United States Until the 2030s | Taiwan News

TAIPEI (Taiwan News) – China has reportedly been on the cusp of overtaking the United States as the world’s largest economy for many years, but the long-awaited moment now appears to be shifting further into the future, according to the latest research of the Japanese Center for Economic Research (JCER).

A new report think tank predicts that it won’t be until 2033 that China’s GDP surpasses that of the United States, according to Nikkei Asia Magazine. Last year, the JCER announced that it would be 2029.

The Chinese Communist Party’s crackdown on technology and other industries, China’s transition to high-carbon energy, and rising debt from the real estate sector are all threatening growth, according to the report. Investment is also expected to contract as Beijing tightens financial regulations to bring order to its real estate sector, the report predicts.

Not only is China slowing down, but the United States is accelerating. The report considers the rapid recovery of the US economy, supported by the massive stimulus package of the Biden administration.

Research suggests that the end result of the competition between the United States and China for global economic dominance is far from certain. The economic policies adopted by the governments of each country today will have a profound effect on their relational power for decades to come.

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