China's economy is growing faster than the economy of the US, but the difference between the two has been decreasing as China's growth slows. I'd expect that slowing growth to continue for a number of reasons.
1 - The middle income trap and more generally the fact that catch-up growth is easier than innovative growth.
2 - Increasing centralized statist control in China, as opposed to the relaxation of such control in the past which allowed for tremendous growth (it is very unlikely to get anywhere near as bad as Mao, but it still been getting worse to a much lesser extent than that disaster).
3 - Demographics.
4 - The US and to a lesser extent a number of other rich countries becoming more hostile and less open to the US, while China itself is doing a bit of the same from the other side. Many countries are seeking to source outside of China. For things that don't need very low wages to be successful there is some attempt to bring the production home. For things that do, purchases will be more from places like Vietnam (and many other countries, I"m not saying Vietnam is going to grab everything from China). Not just from more hostility and less open trade to/from China but also as China's economy grows it will be less and less a low wage place.
5 - The extent of wealth and income in China that's related to a large real-estate bubble.
I still think that China's economy will pass the US's as the world's largest. But I don't see "at least twice as large" soon. Also China has a lot more people. That is the main reason it will become the largest economy. But OTOH that economy is spread among more people. As Chinese living standards improve (and if they don't that we'll create its own problems, but its very likely they will) a huge amount of national income will be needed to cover those living standards. 50% greater economy with over 4 times the people, doesn't give you 50% greater surplus to spend on military adventures or whatever.
This website is a place for people who want to move past shady thinking and test their ideas in a
court of people who don't all share the same biases. Our goal is to
optimize for light, not heat; this is a group effort, and all commentators are asked to do their part.
The weekly Culture War threads host the most
controversial topics and are the most visible aspect of The Motte. However, many other topics are
appropriate here. We encourage people to post anything related to science, politics, or philosophy;
if in doubt, post!
Check out The Vault for an archive of old quality posts.
You are encouraged to crosspost these elsewhere.
Why are you called The Motte?
A motte is a stone keep on a raised earthwork common in early medieval fortifications. More pertinently,
it's an element in a rhetorical move called a "Motte-and-Bailey",
originally identified by
philosopher Nicholas Shackel. It describes the tendency in discourse for people to move from a controversial
but high value claim to a defensible but less exciting one upon any resistance to the former. He likens
this to the medieval fortification, where a desirable land (the bailey) is abandoned when in danger for
the more easily defended motte. In Shackel's words, "The Motte represents the defensible but undesired
propositions to which one retreats when hard pressed."
On The Motte, always attempt to remain inside your defensible territory, even if you are not being pressed.
New post guidelines
If you're posting something that isn't related to the culture war, we encourage you to post a thread for it.
A submission statement is highly appreciated, but isn't necessary for text posts or links to largely-text posts
such as blogs or news articles; if we're unsure of the value of your post, we might remove it until you add a
submission statement. A submission statement is required for non-text sources (videos, podcasts, images).
Culture war posts go in the culture war thread; all links must either include a submission statement or
significant commentary. Bare links without those will be removed.
Jump in the discussion.
No email address required.
Notes -
China's economy is growing faster than the economy of the US, but the difference between the two has been decreasing as China's growth slows. I'd expect that slowing growth to continue for a number of reasons.
1 - The middle income trap and more generally the fact that catch-up growth is easier than innovative growth.
2 - Increasing centralized statist control in China, as opposed to the relaxation of such control in the past which allowed for tremendous growth (it is very unlikely to get anywhere near as bad as Mao, but it still been getting worse to a much lesser extent than that disaster).
3 - Demographics.
4 - The US and to a lesser extent a number of other rich countries becoming more hostile and less open to the US, while China itself is doing a bit of the same from the other side. Many countries are seeking to source outside of China. For things that don't need very low wages to be successful there is some attempt to bring the production home. For things that do, purchases will be more from places like Vietnam (and many other countries, I"m not saying Vietnam is going to grab everything from China). Not just from more hostility and less open trade to/from China but also as China's economy grows it will be less and less a low wage place.
5 - The extent of wealth and income in China that's related to a large real-estate bubble.
I still think that China's economy will pass the US's as the world's largest. But I don't see "at least twice as large" soon. Also China has a lot more people. That is the main reason it will become the largest economy. But OTOH that economy is spread among more people. As Chinese living standards improve (and if they don't that we'll create its own problems, but its very likely they will) a huge amount of national income will be needed to cover those living standards. 50% greater economy with over 4 times the people, doesn't give you 50% greater surplus to spend on military adventures or whatever.
More options
Context Copy link