Comparison of Economic State Between the United States and China
United states and china are the two leading economies of the world in both the nominal and Purchasing Power Parity markets. United States is leading in nominal, whereas china is leading in PPP as of 2014. The economic state of both countries, therefore, share some similarities as well as differences.
Country
United States
China
Gross domestic Product(GDP)
By 2019 United States GDP was at 21.44 trillion(us dollars)
By 2019 Chinese GDP was at 14.140 trillion(us dollars)
GDP per capita
As of 2019 USA GDP per capita was leading at 62.794 trillion(us dollars)
As of 2019, china’s GDP per capita was at 9.77 trillion(Us dollars)
Durable And Non-Durable Goods
The United States makes a lot of sales in non-durable exported than in durable goods sold
Chinese market comprises mostly of non-durable products in export sales compared to non-durable goods.
Retail Sales
By 2019 United States retails stood at 5.5trillion, lower than that of china
In 2019 China surpassed the United States as the world’s leading retail market, now stand at 7.6 trillion(us dollars)
Housing Starts
By June 2020, housing starts were at 1186 annual rate, the highest reading in three month
China recorded an increase in housing prices by 4.9% as by June 2020 since covid 19 scared buyers to go out and make any transaction
Unemployment Rates
By June 2020 united states recorded the highest unemployment rate of 4.8 million which is 11.1%
Chinas unemployment rate has increased over the last decade by averagely 3.65%S
Inflation Rates
Annual inflation rate in the U.S. increased to 0.6% in June of 2020
China’s annual inflation rate rose to 2.5% in June 2020. Food inflation accelerated to 11.1%
Population
By 2020 USA had a population of 329 million
Chinas population is 1.43 billion
Median Household Average Income
Increased by 0.8% to 61,937(us dollar) between 2017 and 2019.
China recorded 21,586.95(yuan) by 2020
Human Development Index
United States’ HDI value for 2019 is 0.920
China’s HDI value for 2019 is 0.758
Trade Deficit or Trade Surplus (In million dollars)
The United States had a trade surplus in services which increased from 255,200.00 million in 2018 to 270,200.00 million in 2019, an increase of 15,000 million(U.S. dollars)
In June 2020, the trade surplus in china amounted to approximately 46400 million U.S. dollars.
The United States and China economies are the largest and leading in the world nominal market. The United States currently sits on top in nominal while china is leading in purchasing power parity. As per the findings by IMF FOR 2019, the United States is also leading in exchange rate basis by averagely 1.5times. China has a vast population compared to the united states approximately 4times more, which also attributes to the differences in per capita with the United is leading.
According to the fore maker from eMarketer, China surpassed the United States in the retail sales market by 2019, making it the leading in the current market. The retail sales in the united states are majorly motor vehicles and spare parts with a total of approximately I million retail establishments. Retail shops in the united states directly employ about 29million people and support 42. China is reportedly having 249,711 retail shops with Chinese Suning.com Group, Gome Electrical Appliances, and china Resource Vanguard remaining the leading three retails.
Both the united states and china recorded an average rate of unemployment for the last decade, with both figures shooting steadily in June 2020 due to the effects covid 19 pandemic. According to The U. S Bureau of Labor Statistics, the country recorded a decline of 11.1% rate of employment in June 2020. Similarly, each country recorded an increased rate in housing starts, with China recording the highest number as by June since the buyers were scared to get out and make any transaction due to covid 19 with the united states also recording the highest number of 1186 annual rate within the three months.
To conclude, both countries share some similarities as well as differences in matters economy. For instance, the Chinese economy is majorly driven by state-owned companies and a few enterprises. In contrast, the American economy is mostly driven by privet entities that are independent of government interference-both recording surpluses in their latest annual trade surplus statistics.
Reference
Shi, W., Leng, K., Van Nieuwenhuyse, I., Liu, Y., & Chen, X. (2020). Vehicle recalls performance in an emerging market: Evidence from the comparison between China and U.S. Transportation Research Part A: Policy and Practice, 132, 290-307.
Zhou, H., Liu, W., & Wang, L. (2020). Systemic Risk of China’s Financial System (2007–2018): A Comparison between Δ CoVaR, MES, and SRISK across Banks, Insurance, and Securities Firms. The Chinese Economy, 53(3), 221-245.
Lee, J., Thomas, J. L., Cunningham, B. J., & Huang, J. (2020). M-commerce Trust and Security Concern: A Comparison Between China and the U.S. M-Commerce Consumers.
Tao, G., & Xiaotong, W. (2020). China’s Service Trade and Dwindling Current Account Surplus. China Economist, 15(3), 18-27.
Zhou, H., Liu, W., & Wang, L. (2020). Systemic Risk of China’s Financial System (2007–2018): A Comparison between Δ CoVaR, MES, and SRISK across Banks, Insurance, and Securities Firms. The Chinese Economy, 53(3), 221-245.