1.1. The new round of ICP surveys is nearing completion. At the beginning of next year we will be able to get a new exchange rate between the renminbi, the euro, the pound, the yen, the ruble, the rupee and the dollar, which will completely change the international economic landscape.
1.2ICP is jointly implemented by international organizations such as the United Nations Statistical Commission and the World Bank, and aims to eliminate the impact of exchange rate fluctuations on the global currency comparison, and use the purchasing power within countries to measure the difference in price levels, and derive a new ratio. The importance of this project is self-evident, and it will help us to have a more accurate picture of the economic power and status of countries around the world.
2.1 Taking the RMB and USD as examples, according to the World Bank, the purchasing power conversion factor of the RMB and USD in 2022 is 399, in other words, the purchasing power of 1 dollar in China is equivalent to 399 RMB.
2.2 From 2018 to 2022, the purchasing power conversion factor of the RMB against the US dollar has been fluctuating. In the latest ratio, the ratio of the purchasing power of the renminbi to the US dollar fell below 4, reflecting the phenomenon of "real reduction in the purchasing power of the US dollar" caused by high inflation in the United States.
2.3 As the latest International Comparison Project comes to an end, the World Bank is expected to fine-tune the PPV ratio between the renminbi and the U.S. dollar to obtain a more precise conversion factor, which is expected to be around 4 to 1.
3.1 Based on the latest PPC ratio, China's GDP will be recalculated. In 2022, for example, China's GDP is 12102 trillion yuan, which is about 30 yuan when converted into US dollars25 trillion, which will be much more than 25 in the United States$46 trillion means that China will become the world's largest economy.
3.2 The Financial Times, in the run-up to its findings, published an article titled "Sorry US, China's economy is bigger than yours", pointing out that there is a distorting effect in exchange rates, often overestimating the purchasing power of the dollar and underestimating the real purchasing power of some developing country currencies. If the size of the U.S. and Chinese economies were remeasured by the conversion factor between the real purchasing power of currencies within each country, China would overtake the United States as the world's largest economy.
3.3 This view was echoed by Professor Stephen Brooks, who pointed out that China's nominal GDP was only 70 per cent of that of the United States in exchange rate terms, and that China's GDP would surpass that of the United States in purchasing power parity terms.
4.1 The reason why the United States is still the number one currency in the world is that the dollar is a strong currency, and many countries are rushing to buy it, pushing up its exchange rate. However, once the dollar loses its current international status, the United States also risks losing its status as the world's number one economic power.
4.2 The results of the International Comparison Project will strongly support the fact that China is on the rise, reminding the United States and other countries not only to focus on their own economic development, but also to keep pace with the times and adapt to changes in the new international economic landscape.
5.1 Through this new round of international comparison projects, we see the great potential and growth rate of China's economy, as well as the challenges to the strong position of the US dollar. The impact of this outcome on the world economic pattern cannot be ignored, and it will inevitably trigger in-depth thinking and discussion on the monetary system and economic development in the international community.
5.The two people also learned from this news that the results of the International Comparison Project are not only the results of data, but also an important reference for the global economic situation. We must adapt to the tide of economic change, seize opportunities, continue to innovate, improve our competitiveness, and promote economic development and social progress.
5.3Finally, we should also realize that economic strength is not only the only criterion for whether a country can become a world power, but more importantly, we should pursue sustainable development and common economic and social progress, seek benefits for the people and development of the country, and achieve the goal of win-win and common prosperity.