The United States of America (USA) has always been known as the number 1 superpower in the world with the most money but the US has since been overtaken by China.
The news broke on Bloomberg, according to Mckinsey & Co., China has overtaken the U.S as the richest country in the world.
In the last 20 years, China’s value has climbed so fast that the rest of the world is struggling to keep up.
Just in 2020, China’s value was at $7 trillion in 2000 and the amount has since climbed times to $120 trillion in 2020.
While for the US, the amount climbed to $90 trillion in 2020.
In data provided by Mckinsey Global Institue, they stated that the worldwide net worth is valued at $514 trillion and China is almost one-third of it.
China’s growth in the automotive industry
Back in the 70s, the Japanese were at the forefront of the car market in the US, US car companies were not wary of the Japanese products as they believed that Americans would prefer bigger cars.
Back then Henry Ford II, said that the Japanese will not make it as they do not understand the big car market in America.
This was true until oils prices started to increase at a rapid rate, from a quarter for a gallon to $2.
This resulted in many opting for Japanese cars which are smaller, use lesser gas, and are much more affordable.
Youtube channel, Now You Know interviewed Sandy Munro an expert with decades of experience in worldwide manufacturing.
Munro said that history is repeating itself
Munro felt that local car companies could face a pinched when China car companies march their ways into the US market.
Back then people were mocking Japanese brands and now China brands, he stated that the production rate and work ethic of China manufacturing plants are on another level.
He said that “we are exactly in the same situation now as back then” and warns local motor companies up their “game” in the automotive industry.
When Tesla had just arrived in the market, the US, European, and Japanese automotive companies felt that electric vehicles will not make it in the market and they are now a step behind.
Munro said that Chinese car manufacturers will make a “Tsunami level” event with electric vehicles in the US market.
He highlighted that there will no safety issues with Chinese cars, As the Department of Transportation and National Highway Traffic Safety Administration (NHTSA) will validate the safety of the Chinese cars before it is allowed for sale in the market.