A joint research report by think tanks from five countries including the United States and Canada states that China’s GDP is expected to surpass that of the United States in 2035.
The report titled “Compound Interest in a Great Power: China’s High-Quality Development and Trend Vision in 2035” was jointly sponsored by the Chongyang Institute of Finance at Renmin University of China, the Russian Free Economic Association, the India-China Economic and Cultural Promotion Association, the U.S.-China Cooperation Center at the University of Denver, and Canada Co-authored by researchers from the Geopolitical Economics Research Group at the University of Manitoba.
“China’s GDP will surpass the United States around 2035 and become the world’s largest economy,” the report said.
The report pointed out that China’s economic growth is faster than that of the United States, and the internationalization of the RMB continues to increase.
The report believes that developing countries will become the main engine of global economic growth in the future, and their rapid growth may drive the world economy to double in the next decade.
The report states that by 2035, the proportion of China’s middle-income group will expand from one-third to nearly one-half.
The report also believes that by 2035, the disposable income of Chinese residents will double.
According to data released by the National Bureau of Statistics of China, in 2023, the per capita disposable income of Chinese residents will be 39,200 yuan.
'China's Compounding Interest: High-Quality Development and Outlook for 2035' unveiled
BEIJING, Apr. 1 (APP): Chongyang Institute for Financial Studies at Renmin University of China unveiled a report titled “China’s Compounding Interest: High-Quality Development and Outlook for 2035” at an international symposium held in Beijing which saw the participation of renowned experts from around the world.
As per the report, released in collaboration with Center for China-US Cooperation at University of Denver (CCUSC), the Free Economic Society of Russia (VEO of Russia), Geopolitical Economy Research Group at University of Manitoba (GERG), India-China Economic and Cultural Council (ICEC), the compounding interest of China is characterized by stability of returns, long-term accumulation and sustainability.
With enormous potential, this development model can sustainably drive the country’s economic growth and promote prosperity in the long term. The momentum of China’s modernization, characterized by the development of ‘compounding interest’, focuses on taking innovation driven initiatives, deepening reforms, expanding opening-up, and promoting green development, China Economic Net (CEN) reported on Monday.
Observers in China and abroad agreed that China has embarked on a new era of structural transformation, “Like globalization, China is giving compounding interest a new meaning,” noted Radhika Desai, Professor at the Department of Political Studies, and Director of Geopolitical Economy Research Group, University of Manitoba (GERG), Canada.
Desai explained that in the financialized West, the rentier worshippers of compound interest imagine that money multiplies on its own. They neglect the productive processes necessary to produce the goods and services that will earn compound interest and support policies and decisions that actively strangle production.
“By contrast, this report sees “compounding interest” entirely in terms of production: in terms of national “wealth growth and assets preservation and appreciation … characterized by stability of returns and long-term accumuulation … [through] .. innovation-driven initiatives, deepening refoorms, expanding opening-up, and promoting green development,”? Desai pointed out.
“The concept of compounding interest is particularly relevant in the context of China’s development,” said Mohammed Saqib, Secretary General, India China Economic and Cultural Council (ICEC), India. Saqib believes that by actively participating in international trade, attracting foreign investment, and engaging in economic cooperation with other countries, China has not only expanded its market access but also benefited from the exchange of knowledge, technology, and capital.
“China is holding out the option of continued global economic development by its laser-like focus on a technology-driven course,” remarked William Jones, Former Washington Bureau Chief for the Executive Intelligence Review (EIR), USA.“Without the engine provided by the Chinese economy and the political commitment to maintain a world of peace and development, the rest of the world would be in a much worse situation than it is at the moment.”
The report also acknowledges China’s challenges in high-quality development. It highlights weak social expectations, information asymmetry, external factors, and institutional reform areas which require the attention of the Chinese government.
The report suggests that deepening reforms, effective policy implementation, bridging the information gap, and prioritising innovation and sustainability will overcome these challenges.
“With the long-term growth potential unleashed by the Chinese path to modernization, China will further pursue the gradual realization of high-quality development, cultivate and develop new quality productive forces, continue to renew policy highlights, and to create the compounding interest, thereby fulfilling its objectives, including surpassing the U.S. in terms of GDP and doubling disposable incomes,” said the report.
