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《RS22808》.pdf
WikiLeaks Document Release
/wiki/CRS-RS22808
February 2, 2009
Congressional Research Service
Report RS22808
How Large is China’s Economy? Does it Matter?
Wayne M. Morrison and Michael F. Martin, Foreign Affairs, Defense, and Trade Division
February 13, 2008
Abstract. China’s rapid economic growth since 1979 has transformed it into a major economic power. Over the
past few years, many analysts have contended that China could soon overtake the United States to become the
world’s largest economy, based on estimates of China’s economy on a ”purchasing power parity” (PPP) basis,
which attempts to factor in price differences across countries when estimating the size of a foreign economy in
U.S. dollars. However, in December 2007, the World Bank issued a study that lowered its previous 2005 PPP
estimate of the size of China’s economy by 40%. If these new estimates are accurate, it will likely be many
years before China’s economy reaches U.S. levels. The new PPP data could also have an impact on U.S. and
international perceptions over other aspects of China’s economy, including its living standards, poverty levels,
and government expenditures, such as on the military.
Order Code RS22808
February 13, 2008
How Large is China’s Economy?
Does it Matter?
Wayne M. Morrison and Michael F. Martin
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