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Could China Pass the US?

Could China Pass the US?. Goldman Sachs says that China can become the largest economy in the world by 2035 by growing by 5% a year. What does the world look like when China’s economy is 9x bigger than it is today? What opportunities does this represent for entrepreneurs?. India is Rising.

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Could China Pass the US?

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  1. Could China Pass the US? • Goldman Sachs says that China can become the largest economy in the world by 2035 by growing by 5% a year. • What does the world look like when China’s economy is 9x bigger than it is today? • What opportunities does this represent for entrepreneurs?

  2. India is Rising • Goldman Sachs says that India can challenge the US for #2 by 2040 by growing by 6% a year. • What does the world look like when the Indian economy is 12x bigger than it is today? • What opportunities does this represent for entrepreneurs?

  3. Here Comes The BRIC Middle Class • Goldman Sachs predicts the BRIC Middle Class could grow from 250 million to 1 billion in the next decade • McKinsey says the Chinese middle class will grow from 80 million in 2007 to 700 million in 2020. • Goldman says that the BRIC Middle Class could grow from 250 million in 2005 to 3.5 billion by 2050* Jim O'Neill, Managing Director & Head of Global Economic Research, Goldman Sachs, 5/06 McKinsey & Company, Inc.

  4. How Far The BRICs Have Come • In 2006 the G7 (the US, Japan, Germany, France, Britain, Italy & Canada) held $1,253,900,000,000 in FOREX • By the end of 2007 China’s FOREX reserves had passed $1,500,000,000,000 • China spent $65 billion for the Olympics. 5x the cost of the Athens Olympics. • China then invested $300 billion to create the China Investment Corporation • Today, China has $2,640,000,000,000 in FOREX reserves. • America’s debt, on the other hand, will increase by $1,000,000,000,000+ in 2011.

  5. A Warning From The Future? • The Chinese Professor • http://www.youtube.com/watch?v=OTSQozWP-rM

  6. Just The Facts, Jack (Billion US$) • May 2008 • China = $506.8 • Japan= $575.3 • Caribbean Banking Centers = $104.5 • Oil Exporters = $164.2 • UK = $271.2 • Brazil = $151.4 • Russia = $63.7 • Luxembourg = $75.2 • Hong Kong = $61.4 • Taiwan = $38.9 • Aug 2010 • China = $868.4 • Japan = $836.6 • UK = $448.4 • Oil Exporters = $226.6 • Brazil = $165.0 • Caribbean Banking Centers = $159.1 • Hong Kong = $137.8 • Taiwan = $130.2 • Russia = $129.0 • Switzerland = $106.6 • http://www.treas.gov/tic/mfh.txt

  7. Cell Phone Penetration • China • 15 million users in 1997 • 410 million users in 2006 • 703 million users in 2009 • 845 million users by end of 2010 • 1.2 billion by 2014 • Added 9.4 million new users in May • 303,226 per day! • India • 340,000 users in 1997 • 525 million users in 2009 • 766 million users by end of 2010 • 1 billion+ users by 2012 • Added 19 million new users each month in the first four months of 2010 • 633,333 per day!

  8. GDP Predictions

  9. Houston, We Have A Problem! China Could pass US BY 2012! • Source: The Conference Board Report issued on November 10, 2010 using Purchasing Power Parity (PPP)

  10. Exploding Energy Consumption

  11. Energy, China and India

  12. 1964-70 1989-94 2000-2005 A Swarm of Inflection Points Dr. P. Konana, McCombs Business School, University of Texas at Austin

  13. This is a Brazilian Super Tanker

  14. An Orange Juice Super Tanker

  15. This is a Brazilian Jet

  16. Inside Air Canada’s Embraer 190

  17. Add A Large Dash of Oil . . .

  18. Competing With M&A • Mittal Steel acquires Arcelor • ArcelorMittal is the #1 Steel Company in the World with 310,000 employees in 60 Countries

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