What will happen when Chinese economy surpasses that of USA?
Answer:
First, I am not sure what you mean by "chinese economy surpasses that of USA" whether you mean in terms of value of GDP, total value of consumer purchases or what.
Second, the currencies will never merge. The euro came about only because the european countries realize that individually they are each too small (in terms of population, exports, raw materials, etc) to rival the largest countries in the world, USA, Russia, and eventually China and India. So they have made efforts to pool their resources by using the euro and forming the european union. The euro helps defray currency risk across more countries and more people. China has no reason to pool their interests with other countries right now and I doubt that other countries want to be pooled with China.
no.
If you are asking if the currency of China and USA will merge. Not in a million years.
If China's economy surpasses that of USA *(which is unlikely, since USA will not allow such) but for the sake of conversation, If such would happen, that would mean China would be independent of USA economy inorder for it to surpass USA. That would also mean that, "globally" people are patronizing Chinese products and services. Be it technology, agri, R and D, etc etc and that global percentage of countries investing in China is higher than that of those who have invested in USA. it would mean as well that China has invested tons of money all over the world to achieve such.
There would be a paradigm shift. Where in USA's economy will shrink making China overtake USA. It cannot compete where in 2 economies are powerful. It will just be a shift. One economy will shrink (my opinion) Potentially, China can surpass USA, population wise, they have a billion people, land mass, China is huge, naturual resources they have alot. Technology wise, China is catching up. Right now, china made may be poor, but remember when made in japan was thought to be inferior, now made in japan is a mark of excellence. Soon China will get there.
So assuming China has overtook USA, neighboring countries of china will definitely experience a growth in their economy as well. Global Economy might be divided to 2. Asian Block and Western Block. There will be questions arising which block countries would want to support. Free trade agreeements will be revised, to protect economies, entry of immigrants, migrant workers, will be very very limited in USA.
What is more likely to happen is Asian Currency will merge, that is to avoid speculative attacks by richer nations, which happened in 1997.
But again never will China and USA share one currency. Logistically, not viable, policy issues between two countries differ. China is not fond of USA. Only a few to cite why it will never happen.
Chinese per capita income and standard of living will still be much lower than the US economy at that time and considerably lower. But Chinese will at the time be able to afford to buy some goods produced in the US and will not need to export so much cheap goods to the US by exploiting the Chinese labor. Many Americans will work for Chinese companies in the US as well as in China and elsewhere.
It won't. There is not enough oil for starters. Secondly, China has to import food and use oil-derived soil regenerators for food production. China is completly unsustainable and will eventually collapse.
The answers post by the user, for information only, FunQA.com does not guarantee the right.
More Questions and Answers: