In the final months of 2010 something remarkable happened. China eclipsed Japan as the second largest economy in the world capping decades of growth after opening up. The impossible growth of China in the last decades of the 20th century and first part of of the 21st is perhaps the most important economic story of this generation.
Japan: $3,050 billion
China: $461 billion
Japan: $5,180 billion
China: $14,220 billion
That’s right, China moved its economy from generating $461 billion in GDP to $14.22 trillion in GDP in the span of three decades. Thus the impossible growth of China has forever changed global markets.
This has in many ways been led by manufacturing. As a result China ranks first in the world in industrial output. In 2016 the country produced $4.566 trillion of industrial output beating the European Union at $4.184 trillion and the US at $3.602 trillion.
The US China trade war does threaten Chinese growth however its population and strong lead in many industries means that China’s domestic consumption combined with pricing advantages should help propel the impossible growth of China for at least a little while longer. This is a story which is far from over.