The tiger fattens quickly! How will U.S. policy change as China becomes the world's largest economy? The future will not resemble the past.
"With China's announcement on Tuesday that its economy was considerably bigger than previously estimated, economists and financial prognosticators are scrambling to rethink their assessment of China's rise and its role on the world stage. China's new figures suggest that it probably has passed France, Italy and Britain to become the world's fourth-largest economy.
Some economists are even accelerating their timetables for when China may eclipse the United States as the world's biggest economy. With the new figures offering a more expansive view of economic activity, some said China could overtake the United States as early as 2035, at least five years earlier than previous projections.
'We now have a new snapshot of the Chinese economy,' said Hong Liang, an economist at Goldman Sachs. 'This is not slightly bigger - it's a significantly bigger economy.'
China said it revised its economic data after a yearlong nationwide economic census uncovered about $280 billion in hidden economic output last year. The new output was the equivalent of an economy the size of Turkey's or Indonesia's - or 40 percent the size of India's economy.
As a result, China's gross domestic product for last year is now estimated at nearly $2 trillion, not the previously reported $1.65 trillion. That translates into an adjusted increase of 17 percent, making China the sixth-largest economy in the world in 2004."
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