If China is capitalist, as many across the political spectrum insist, then it 
is surely a newer and more advanced form of the system and contradicts the 
Marxist claim dating back to the mid-19th century that capitalism has exhausted 
its historic potential. Far from having become a “fetter” on the development of 
new productive forces, a report in today's Asia Times asserts that the extent 
and speed at which China’s economy has surpassed that of the US and of the 
other advanced capitalist countries is greatly understated.

Though still lagging in per capita productivity, the latest World Bank 
statistics estimate that China’s gross domestic product measured in purchasing 
power parity is 125% the size of US economic output. But Han Feizi says "who 
are we kidding? Last year, China generated twice as much electricity as the US, 
produced 12.6 times as much steel and 22 times as much cement. China’s 
shipyards accounted for over 50% of the world’s output while US production was 
negligible. In 2023, China produced 30.2 million vehicles, almost three times 
more than the 10.6 million made in the US. On the demand side, 26 million 
vehicles were sold in China last year, 68% more than the 15.5 million sold in 
the US. Chinese consumers bought 434 million smartphones, three times the 144 
million sold in the US. As a country, China consumes twice as much meat and 
eight times as much seafood as the US. Chinese shoppers spent twice as much on 
luxury goods as American shoppers."

Feizi attributes the disconnect to Chinese economists' understating the growth 
in services which they consider as "necessary costs of material production 
rather than real value creation” while GDP in the US and other Western 
economies  is "largely driven by the inflation of necessary services – rent, 
healthcare, education and childcare – not by manufactured goods”. 

"As necessary services become an ever larger share of Western economies, their 
growth does not appear to result in discernible improvements in living 
standards...China’s material-focused GDP may be a better measure of the economy 
as it relates to living standards”, Feizi notes.

Full: 
https://asiatimes.com/2024/06/whats-the-real-size-of-chinas-economy/?mc_cid=64db20d951

This week’s Economist cover story meanwhile reports on the parallel rise of 
Chinese science.  "The old science world order, dominated by America, Europe 
and Japan, is coming to an end”, it says, pointing to China’s state-directing 
planning and investment in research and development which has allowed it to 
vault past the US and Europeans in the physical sciences, chemistry and Earth 
and environmental sciences while “playing catch up” in other fields. 

According to the Economist, Chinese scientists now author more “high impact” 
papers - those cited most often by their peers - and China employs more 
researchers than the US and Europe combined. More scientists are now returning 
to the country than leaving. Six Chinese universities now rank in the top ten 
according to one prestigious index."They may not be household names in the West 
yet, but get used to hearing about Shanghai Jiao Tong, Zhejiang and Peking 
(Beida) Universities in the same breath as Cambridge, Harvard and ETH 
Zurich...As Chinese universities fill with state-of-the-art equipment and elite 
researchers, and salaries become increasingly competitive, Western institutions 
look less appealing to young and ambitious Chinese scientists”. 

The state’s current five year plan calls for advanced research in quantum 
technologies, AI, semiconductors, neuroscience, biotechnology, and other 
cutting edge sciences, and while China "still produces a vast amount of 
lower-quality science too”, the areas where America and Europe still lead are  
"unlikely to be safe for long...There is little to suggest that the Chinese 
scientific behemoth will not continue growing stronger."

Full: https://archive.is/Dp7J4#selection-1509.0-1509.99




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