China's Economy Surpasses EU... Next Target is the United States

EU Last Year GDP Preliminary $15.73 Trillion, China GDP Estimated $17.96 Trillion
Impact of UK's EU Withdrawal... Per Capita GDP Difference of 3.6 Times

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Chinese state media reported that China's Gross Domestic Product (GDP) in 2021 surpassed that of the European Union (EU). This is the first time that China's GDP has exceeded the combined GDP of the 27 EU member countries.

[Image source=AP Yonhap News]

According to the state-run Global Times on the 1st, the GDP growth rate of the 27 EU member countries last year was preliminarily estimated at 5.2%.

Accordingly, the Global Times reported that the GDP of the 27 EU member countries last year was 14.09 trillion euros (US$15.73 trillion). The media added that China's GDP last year was 114.367 trillion yuan (US$17.95595134 trillion), representing an 8.1% growth compared to the previous year.

The Global Times emphasized that China's GDP surpassing the entire EU GDP is a groundbreaking event, and that China has become an economic powerhouse beyond a massive economic bloc like the EU. It also noted that China surpassed the EU one year earlier than initially expected, reiterating that China is the undisputed world's second-largest economy. The International Monetary Fund (IMF) had predicted that considering the UK's exit from the EU, China's GDP would surpass the EU's GDP in 2022.

The Global Times explained that due to the Chinese government's effective control of the pandemic (COVID-19), China's economy grew by 8.1% last year, overtaking the entire EU.

The media cited Chinese experts, stating that China experienced rapid growth last year in various fields such as new energy vehicles, artificial intelligence (AI), cloud computing, and the Internet of Things (IOT), and that advancements in these sectors were the driving force behind surpassing the entire EU economy.

Chui Hongjian, Director of the European Studies Institute at the China Institute of International Studies, said, "China was able to withstand the economic impact of COVID-19 due to its pandemic control efforts," adding, "China's internet and digital economy, in particular, enabled it to surpass the EU earlier than initially expected."

However, he pointed out that since China's per capita GDP is still lower than that of the EU, economic policies should focus on stable and sustainable growth. Last year, China's per capita GDP was estimated to be around US$12,551. China is optimistic that this year its per capita GDP will be listed among high-income countries (US$12,696) as classified by the World Bank (WB).

The Global Times stated that the EU's per capita GDP is about 3.6 times higher than China's and argued that the Chinese government should focus on sustainable and stable growth rather than high-speed growth going forward.

This content was produced with the assistance of AI translation services.