Derek M Scissors, a Resident Scholar at the American Enterprise Institute, wrote in National Interest on November 27, 2017, that estimates of China's GDP as compared to that of the US are over rated as are those of its wealth. Citing figures released by Credit Suisse, which he described as tentative, Scissors said net private Chinese wealth jumped from $4.66 trillion (less than India's today) to $21.7 trillion between 2000 - 2012 or close to a 14 percent annual growth rate. American net private wealth over the same period rose from $42.3 trillion to $67.5 trillion. While the absolute advantage for the United States expanded, it did so by only $8 trillion because U.S. annual growth was only four percent. China was easily outperforming. since then, however, the situation has changed sharply. From the end of 2012 to the middle of 2017, Chinese net private wealth has climbed $7.3 trillion, annual growth never touching 9 percent. American net private wealth jumped $26 trillion. The American base was much bigger and American growth also became a bit faster. The result: mid-2017 Chinese net private wealth was $29 trillion and American net private wealth was over $93 trillion. The Federal Reserve supports the Credit Suisse number, putting American household net worth at $96 trillion. Stating that GDP is not a perfect measurement of economic performance and nor is private wealth, he said claims that China is about to eclipse the US are nevertheless untenable. He concluded that the United States is nearly $45 trillion ahead of China in net national wealth. Further, the gap is not presently closing. It is not closing in private wealth in isolation, it is not according to Bank of International Settlements (BIS) debt data, and it is not according to this calculation method which utilizes Chinese reporting.
|
