The sleeping giant China is already awake and now it has surpassed Japan being the World’s second largest in economy. It has been three decades and a lot of Chinese has been brought out from poverty.
It has been projected by World Bank, Goldman Sachs and others that they would be able to surpass USA as No. 1 by 2025 depending on the speed of the increase in their exchange rate. It has been projected that they would surpass Japan by 2009 and it has become reality.
The said fact has been supported by China’s Chief Currency Regulator, Yi Gang. “China, in fact, is now already the world’s second-largest economy,” he said in an interview with China Reform magazine posted on the website (www.safe.gov.cn) of his agency, the State Administration of Foreign Exchange. “China is still a developing country, and we should be wise enough to know ourselves,” Yi said, when asked whether the time was ripe for the yuan to become an international currency.
Since 1978 China has averaged more than 9.5 percent growth annually and as of this moment, its economy expanded 11.1 percent. China is a leading member of the Group of 20 rich and emerging nations. However according to Yi, they would keep their profile and no plans yet to convert their national money Yuan into a global currency.
“China is very big and its development is unbalanced, which makes this problem much more complicated. It’s difficult to reach a consensus on it, we must be modest and we still have to keep a low profile. If other people choose the yuan as a reserve currency, we won’t stop that as it is the demand of the market. However, we will not push hard to promote it,” he added.
This sleeping giant has a lot of things to brag but remained silent. There is no doubt that sooner of later, we would then find out that it already emerged as No. 1.