China Is No. 1 Economic Powerhouse
MANILA (Dispatches) - “The number one economic powerhouse.”
This was how President Rodrigo Duterte described China as he stressed the importance of forging closer ties with the Asian power amid tension over the South China Sea — control of which is at the heart of a maritime dispute between Beijing and Manila.
“We have to be friends. There’s a... the other hotheads who would like us to confront China and the rest of the world for so many issues. The South China Sea is better left untouched,” Duterte said in his speech on Sunday.
The topic of whether China has already emerged as the world’s most powerful country has been widely debated by foreign relations experts for years.
But according to World Bank data, the U.S., which accounted for over 24 percent of the world’s gross domestic product in 2016, has been the world’s biggest economy.
The U.S. is also among the “advanced” economies listed by the International Monetary Fund. Meanwhile, IMF classified China as among the “emerging and developing” countries in Asia.
The main criteria used by the IMF to classify nations into advanced economies and emerging market and developing economies are per capita income level, export diversification, and degree of integration into the global financial system.
But recently, both the IMF and World Bank qualified that China has overtaken the U.S. in terms of GDP based on purchasing power parity, which is one measure of total economic strength, the World Economic Forum reported.
PPP adjusts countries’ GDPs for differences in prices.