Click on the image for full size.
The Chinese and the U.S. economies are the two largest in the world.
The United States has had the world’s largest economy for about 140 years, and it roughly accounts for 22% of global GDP. However, in recent times China has overtaken the US by at least one measure of total economic strength, which is GDP based on purchasing power parity (PPP).
And as the Visual Capitalist points out, the makeup of each economy is totally different. The United States is a sophisticated and highly diversified economy that is based on services, finance, and consumption from the middle class. China has similar aspirations in the future, but right now it is resource-intensive growth engine making the transition from a manufacturing hub to a consumer-driven economy.
Like this article? Share it with a friend! Want more articles like this one? Sign up for the Vintage Value Investing newsletter to get fresh new articles delivered to your email inbox every morning!