China's economy will overtake that of the United States by 2035 and become the world's largest, according to a study by the Carnegie Endowment for International Peace. The report also concludes that the Chinese economy will be twice the size of the United States' by the middle of the century, approximately US$82 trillion in comparison with US$44 for the United States. "China's growth this decade has averaged more than 10 percent a year and is still going strong in the first half of 2008," says Albert Keidel, Ph.D., the economist in charge of the study. "Because its success in recent decades has not been export-led but driven by domestic demand, its rapid growth can continue well into the 21st century, unfettered by world market limitations." The calculations use the purchasing power parity (PPP) measure used by the World Bank. According to Keidel, "China's financial clout will spill into every conceivable dimension of international relations. Leadership of international institutions will gravitate toward China. This movement could include the equivalents of that time of the United Nations, the World Bank, the International Monetary Fund, regional international development banks, and more specialized bodies. Various headquarters could shift to Beijing and Shanghai."
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