The brief discussion about 10 largest Economies over 60 years and nowaday China

Darren Wu

by Darren T.J. Wu(宗仁), Will C.
In past few days, author Darren found the video clip showing the changes of GDP in volume of top ten country from 1960 to 2017. It is a moving picture more like a world Economic race than a dynamic bar chart.

We can see it below.

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The US leads all the time in this clip, followed by Japan who dominated the second place for approximately 50 years before the rise of China. 
The clip shows the historic fact that Japan rose at around the 1950s with the assistance of USA for the first step to stand up from the wrecks of the WWII.
With the appropriate policies taken and perseverance deeply rooted in Japanese culture, they keep in that place after USA as world's second largest economy for the amazing long time---even though they have been hit by the housing bubble and two times of global financial crisis.
Also, the clip tell us more about the historic overview of the rise and fall of the past global economic giants---at least at their time. 
We see Argentina(1960), Brazil(1970-80), Mexico(1980) and later, Russia(1990) shown in this clip. These countries are well known as the "Emerging country", which were looked up by the international capital and were pushed up to the sky high level in their market cap and subsequently, GDP.
Without further facilitation in political and economic mechanism, they were vulnerable to unexpected shocks no matter the form it takes. Of course,  prosperity of those country, with no doubt, has had come to an end one after another. The capital waits no man without profit. 
The lesson we got is that an ideal and sustainable developed market need a matched political system to help with. It is not an easy way to find that under different measurement of model---Frankly speaking, at least laissez faire may not be the answer that suits every kind of situation.
China grows up violently, especially since 2004 more close to 2005, surpassing France, UK, Germany and Japan respectively. It is similar to be a tiger with wings added for China to take part in Brett Wood system in 1980s, a global game, and later WTO in 2001 to open the window to the world.
With the wisdom of Chinese paramount and the supports of Western country, largely, USA, The sleepy giants, China found back their glory and self-esteem of nation. Even so, USA believe that the more open, democratic and transparent China is inevitable (as Mike Pence, the vice president of USA, said in his speech) . But the answer may be negative based on the recent situation. The result contradicts the wish.

Will C.: Discussion about China's attitude toward being open
This argument was made by author Will C., who took part in this English discussion. What he has said is completely copied below:
The interesting thing is that often a countries market capitalization and GDP are similar, but not exactly the same. Market capitalization for the US is a little over 30 trillion USD. Since GDP is 19 trillion, this means people "believe" the value of all the companies is 11 Trillion more than what the companies actually have proven to be worth.
Now for China: For market capitalization, journalists often exclude China's "A Shares". These are stocks that only Chinese people can own.
If you exclude A-Shares, then China's market capitalization is only 889 billion. The article (click here) shows a map that excludes Chinese A-shares.
This means their "globally recognized" market capitalization is about equal to Taiwan's. China has a "global" market cap of 1 trillion and a GDP of 12 trillion! With A-shares included (only Chinese can invest) it is a market cap of 9 trillion.
If your GDP is higher than your market cap, then what you have proven to be worth is higher than what investors "believe" your value is worth. Lots of production. Very little risk taking.
China really hates globalization. China really hates risk taking. China produces a lot and speculates very little.
America is exactly the opposite.

Darren Wu: The further more thinking beyond Economics    
And I think the case you have mentioned---why China argue against being globalized and freely open---explains why America is dissatisfied with the action China is doing——taking advantage of the free and open trade from around the world, especially from America and what's worse, being less open in market and getting less politically and economically democratic. 
I believe Will got one of the reason why global now become alarmed to China. But the question is that, why do this happen? I would like to make some speculation. The first possible reason that causes China's low capitalization (seemed like hating globalization and furthermore, free market) may be their unhealthy structure of their financial market (except for A share market). This may not appeal to foreign capital's attraction. Not only China but also most of the developing country shows the similar sign.
Second, if the market goes in their way, that is, freely flow capital and labor, the country will lose control and the legitimacy of the authority concerned will fall apart for unable or not assuring to drive the economic engine forward. Politic power governs the market, but the market transports the nutrient to survive the Politics. 
So I stand up for the speculation that China authority reasons the controllability of the economic system more than the globalization of that, which directly help sustain their governing power.
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