NEW DELHI: The US has long been the sole hegemon of the world after the collapse of the erstwhile Soviet Union and no country has been able to challenge its global dominance in the last 3 decades.
However, China has been stealthily leapfrogging other developed nations and has successfully cemented its position at the top of the ladder. Several experts have said that the Chinese economy will soon overcome the American economy and it is only a matter of time. A recent report by the research arm of consultants McKinsey & Co. has further solidified this claim.
The report suggests that China has overtaken the US to become the richest nation in the world. This comes at a time when global wealth has surged. The researchers have thoroughly examined the national balance sheets of 10 countries which represent more than 60% of world income.
According to research conducted by McKinsey & Co., the worldwide net worth has steadily surged from $156 trillion in 2000 to $514 trillion in 2020. China accounted for almost one-third of the increase. China's wealth has increased by $113 trillion from $7 trillion in 2000 to $120 trillion in 2020. It has proved to be crucial in helping China to overcome the US in terms of net worth. The net worth of the US also doubled to $90 trillion during the same period but was not successful in getting past China as a result of muted increases in property prices.
The incredible story of China's rise has been that of rags to riches one. The Chinese population was struggling to sustain themselves during the cultural revolution of the 1970s during Mao's regime. However, during the 1990s, China experimented with its economy and opened up some portions of it to the rest of the world. It luckily worked for them and the rest is history.
Currently, the GDP of China in 2021 stands at $16.642 trillion, and its GDP per capita is expected to reach 8840.00 USD by the end of 2021.
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