Global Times recently reported that, based on the World Bank’s latest calculation, China is now the largest economy in the world. Economic power also brings the power of political influence. Over a decade ago, China surpassed Japan to take second place. Some experts have suggested that China may not be at the top if a different method of calculation is used. The United States has been the largest economy since 1872. After around one and a half centuries, China has finally unseated the United States. China is seeking more power in world class organizations like the International Monetary Fund. With this new development, China hopes the current political balance will have to be adjusted. However China should be worried that the international community may ask China to shoulder more responsibilities. In the long run, India and Indonesia may catch up as challengers. However China is very likely to break the record that the Unites States set, which is to hold the top title for one and a half centuries.
[Editor’s note: The method of calculaton used is called “purchasing power parity." It compares the purchasing power of the yuan inside China to the purchasing power of a dollar inside the United States.]
Source: Global Times, September 28, 2014