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It is expected that the Chinese economy will take over in the next 2-3 years. For...

It is expected that the Chinese economy will take over in the next 2-3 years. For a debate, i want to know Why will it be bad if the Chinese economy takes over the US economy? what will be the downsides if it happens?

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Answer #1

Yes, it will be bad if the Chinese economy takes over the United States economy because of the following reasons:

1. The dollar which is considered as the vehicle currency will lose its worth and yuan will take over dollar as the vehicle currency which can significantly impact the exchange rate of dollar vis-a-vis other currencies. This will lead to depreciation of dollar.

2. It will also lead to migration of the skilled workforce of the United States to China which will impact economic growth rate of the Chinese economy.

3. It is harmful for the entire world economy because of the dictatorship type of political system followed in Chinese economy will dominate which is not good for the world economy as a whole.

Thus, it is bad for the world economy as a whole and it is very difficult for Chinese economy to overtake a more advanced and developed US economy.

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