George Magnus is a research associate at Oxford University’s China Centre and at Soas. He is the author of Red Flags: Why Xi’s China is in Jeopardy.
Historically, China’s growth miracle has been remarkable. In the 30 years to 1990. The money GDP (the market value of goods and services produced in an economy) for China and the US in American dollar terms grew more or less in tandem at just over 6% and 8% per annum, respectively. . But in the next three decades, China’s GDP growth doubled to over 13%, while America’s halved to 4.5%. That pushed China’s GDP up from 5% of American GDP to 66%.
He’s using money GDP. That means he’s not adjusting for inflation, which differs in the two places. Also, differs over time, making the rate comparison pretty dodgy. But also he’s measuring in $. But the Chinese currency was a fixed – and entirely fanciful – rate for most of that time. Making straight yuan to $ comparisons absolute nonsense.
Just nonsense numbers to be using.