So apparently China passed Japan to become the world’s second largest economy, which is hilarious since this is a repeat of news we first heard last August.
We doubt this will be the last time this gets headlines.
In the meantime, just remember that on a per-capita basis, China is somewhere around Belize and Albania according to the IMF.
Two quick points though. The first is that, as poor as China is on a per-capita basis, its importance in the global economy is remarkable. And second, it’s precisely because it’s so rich and so poor at the same time that the matter of its currency manipulation is such an issue. If it were a normal-size country, the pegged yuan would be no big deal.