China is playing an increasingly more important and influential role in the global economy. China has recently become the second largest economy in the world, yet China remains a developing country. There is a general misperception that China’s economy is catching up to the United States. This stems from a number of analytical errors the most common being comparing the US-China power balance from statistics that compare China only to its previous self. For example, there have been studies stating the growth rates of China’s per capita income, technology industry value and military expenditure are exceeding those of the United States concluding China is catching up (Beckley 2011, 44). However, focusing on growth rates conceals China’s decline comparative to the United States in these categories. Beckley (2011, 44) argues,
China is playing an increasingly more important and influential role in the global economy. China has recently become the second largest economy in the world, yet China remains a developing country. There is a general misperception that China’s economy is catching up to the United States. This stems from a number of analytical errors the most common being comparing the US-China power balance from statistics that compare China only to its previous self. For example, there have been studies stating the growth rates of China’s per capita income, technology industry value and military expenditure are exceeding those of the United States concluding China is catching up (Beckley 2011, 44). However, focusing on growth rates conceals China’s decline comparative to the United States in these categories. Beckley (2011, 44) argues,