China’s economic foes
China has all but overtaken the US based on GDP at newly-computed PPP exchange rates, twenty years after Paul Krugman predicted: “Although China is still a very poor country, its population is so huge that it will become a major economic power if it achieves even a fraction of Western productivity levels.” But will it eclipse the US, as Arvind Subramanian has claimed, with the yuan eventually vying with the dollar for international reserve currency status?
