The Chinese Communist Party (CCP) was founded one hundred years ago on July 1, 1921. The party has transformed China from a poor and backward third world country into a vibrant and prosperous industrialized economy. This rapid historic transformation has surprised everyone, including China's friends, but especially its western foes who now see the emergence of the Asian giant as a challenge to centuries-long western domination of the world. It has also earned the CCP high levels of performance legitimacy and popularity among the Chinese people. The CCP's successful response to the COVID crisis has further boosted its legitimacy and popularity in China.
|China Surpassed United States in Global Trade
Over the last several decades, China has built a strong manufacturing base to serve as the factory to the world. This efficient industrial base is being used by all major global brand-name multi-national giants to manufacture and supply everything from Barbie dolls to iPhones. It has served as a powerful engine to drive the Chinese economy which now rivals the US economy in size. China's GDP overtook the U.S.'s in 2017 in terms of purchasing power parity, according to Nomura Securities. China has eclipsed the United States as the world's largest trading nation.
|Japanese Government Projection of Future GDP Trajectories. Source: Nikkei Asia
China's Economy Slowing:
There's some evidence that China's economy is slowing after hitting a peak growth in the last decade, according to Forbes magazine. It may sound like wishful thinking but the American magazine argues that "China’s growth has slowed in recent years, partly due to maturity. Extremely poor countries have the potential to grow rapidly. As they approach the level of developed countries, growth is harder and thus slows".
|China Economy Slowing. Source: Forbes
The United States is far ahead of China in global digital economy. But the US-China battle for future dominance of this economy is now underway. The winner of this contest will dominate the next phase of global economic competition. It will be determined by achieving mastery of computer chips and software needed to build complex systems.
The United States and its ally Taiwan are far ahead of all other nations in building the most advanced 5 nanometer semiconductor components. But China is gearing up for it. Chinese leader Xi Jinping has appointed Liu He, his most trusted lieutenant, as the "chip czar" to lead this effort as a top national priority.
Technology firms today make up a quarter of the global stock market and the geographic mix has become strikingly lopsided, according to The Economist magazine. America and, increasingly, China are ascendant, accounting for 76 of the world’s 100 most valuable firms. Europe’s tally has fallen from 41 in 2000 to 15 today.
|Locations of Global 500 Companies. Source: Fortune Magazine
South Asia Investor Review
China-Pakistan Scientific Cooperation
US-China Battle For Influence in Pakistan
Indian Movie White Tiger on India's Democracy
Musharraf Earned Performance Legitimacy
Has Intel's India-American Techie Jeopardized US Technology Leadership?
Marvel Pays $7.5 Billion For Cavium Co-Founded by Pakistani-American
OPEN Silicon Valley Forum 2017: Pakistani Entrepreneurs Conference
Pakistani-American's Tech Unicorn Files For IPO at $1.6 Billion Valuation
Pakistani-American Cofounders Sell Startup to Cisco for $610 million
Pakistani Brothers Spawned $20 Billion Security Software Industry
Pakistani-American Ashar Aziz's Fireeye Goes Public
Pakistani-American Pioneered 3D Technology in Orthodontics
Pakistani-Americans Enabling 2nd Machine Revolution
Pakistani-American Shahid Khan Richest South Asian in America
Two Pakistani-American Silicon Valley Techs Among Top 5 VC Deals
Pakistani-American's Game-Changing Vision