According to a study by McKinsey Global Institute, China has overtaken the US to become the richest country in the world. Worldwide net worth more than tripled to $514 trillion in 2020 from $156 trillion in 2000. China led in these gains, with its wealth rising from just $7 trillion at the turn of the century to $120 trillion last year. The US total was only $90 trillion, although it more than doubled. The Chinese gains can be attributed in large part to real estate valuations, which could fall if this foamy sector suffers an Evergrande-led crash, which is unlikely.
Still, China has clearly become wealthy and its economy could overtake the US by the end of this decade. This would mean a more powerful China, both economically and militarily. But whether it also foreshadows a major shift in global power from west to east is not so clear, even if Beijing manages to exert greater influence over multilateral institutions. America has reigned supreme when it comes to bending others around the world to its will. With its financial resources no longer all that unattainable, Washington will need to rely on its soft appeals, such as its democratic ideals of liberty and equality, to maintain influence.
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