Charts and Facts, 2019
by Chris Kanthan
https://worldaffairs.blog (September 23 2019)
A vast majority of Americans have absolutely no clue how advanced China has become. Look at the social media comments, and it’s clear that too many Americans – especially Trump supporters – are filled with misinformation and prejudice. “China is 100 years behind” … “All Chinese products are crap” … “China can’t innovate” … “It’s a communist, poor, polluted country” … and, of course, the most popular theme is “China’s economy is about to collapse”. It’s hard to change these opinions since those people reinforce their biases by gleefully consuming and sharing only anti-China articles. Anything remotely positive about China is attacked as “Chinese propaganda”.
This potent mix of ignorance and hubris is also precisely why western corporations gladly and voluntarily shared their intellectual property (IP) with their Chinese joint-venture partners. The term “forced technology transfer” was invented retroactively only after Chinese corporations started threatening western profits – for example: Huawei has overtaken Apple, Nokia, and Ericsson in smartphones, 5G, and telecom infrastructure; BYD manufactures more electric vehicles than Tesla; Alibaba and Tencent process fifty times more mobile payments than the US; and the most valuable (ByteDance) and the most innovative (Meituan) startups are Chinese.
While it’s true that China as a whole has a long way to go in GDP-per-capita, many big cities in China are essentially “developed economies”. Plus, China has surpassed the US in many areas and is catching up in others.
If you don’t know your competitor, you’re certain to lose the game. So here are some quick statistics on China’s global leadership:
Economy, Manufacturing, Trade
#1 in exports (been so since 2009 when it overtook Germany)
#1 in manufacturing value added (been so since 2010 when China took the crown from the US, which had been #1 for the previous 110 years).
#1 in foreign exchange reserves (>$3 trillion)
#1 holder of US debt (>$1 trillion)
#1 trade partner for 130 countries (trade = exports + imports). And for 37 countries, China is their #1 export destination (meaning, they sell the most goods to China).
#1 in steel, cement, aluminum production.
In three years (2012~2015), China used more cement than the US did in the entire 20th Century): https://www.washingtonpost.com/news/wonk/wp/2015/03/24/how-china-used-more-cement-in-3-years-than-the-u-s-did-in-the-entire-20th-century/
#2 in billionaires (about 400 billionaires)
#2 in millionaires (five million millionaires)
#2 stock market, by market cap (overtook Japan in 2014)
#1 in production of rice, wheat, potato, beer(!), tea, apple, strawberry, grapes and numerous other grains, vegetables and fruits.
Poverty and Middle Class
#1 in Middle-Class population (350 million in 2018; and it overtook the US in 2015)
#1 in online/e-commerce retail sales (3x the US)
#1 retail market in the world by 2019 ($5.6 trillion)
#1 in personal luxury goods sales (35% of the global market)
#1 luxury car market (Example: 400,000 BMW’s manufactured and sold in China in 2017)
#1 in international tourism spending (In 2010, Chinese tourists spent half as much as Americans; and by 2017, China was spending twice as much as the US)
#1 in e-commerce (42% of the world market)
#1 in 4G mobile network (two billion users)
#1 in Internet users (830 million people) and fiber-optic broadband users (320 million)
#1 in smartphones (Chinese brands have 40% of the global market)
#1 in solar, wind and hydroelectric power
#1 in electric cars – manufacturing and sales
#1 in consumer drones (seventy percent of the global market)
#1 in supercomputers (227 out of the 500 supercomputers are Chinese)
#1 in mobile payments (fifty times larger than the US)
Science, Research & Development
#1 in science, technology, engineering, and math (STEM) college graduates (four times as many as the US) https://www.forbes.com/sites/niallmccarthy/2017/02/02/the-countries-with-the-most-stem-graduates-infographic/#24e81ad3268a
#1 in 5G (China owns about forty percent of 5G patents, and the world’s leading 5G vendor and patent holder is none other than Huawei) https://www.bloomberg.com/opinion/articles/2019-02-11/china-s-5g-winners-are-out-of-reach-for-stock-investors
#1 in Artificial Intelligence (AI) funding, startups, and publications (link, link)
#2 in R&D spending – according to US National Science Board (#1 if measured by purchasing power)
#2 in the number of satellites in orbit/space (280 satellites as of 2018). In 2018, China became the first country to land on the far side of the moon.
What Should the US Do?
Try to “contain” China? Start World War Three to maintain our global hegemony? Become depressed and paranoid? Thankfully, the answer to all those questions is, “NO”. There are constructive things that America can and should do to prepare for the future. I will discuss those in my next article.