![]() ![]() That came to an end with the Enlightenment and the Industrial Revolution in Europe. Up to the 17th century, Asia was the world's economic centre and powerhouse. This process can be seen as a reversion in time. At market exchange value, it is only at 38% but is closing the gap quite rapidly. Indonesia, for instance, would comprise 1.9% of world GDP by 2030.Īccording to the Financial Times (subscription required), IMF forecasts see Asian GDP at purchasing power parity becoming greater than that of the rest of the world in the next few years:Īlready on the basis of PPP, the Chinese economy is larger than that of the USA. Other Asian countries would increase their share at the expense of the West. They saw China's share of world GDP increasing to 23.3%. The Economist Intelligence Unit (EIU) recently made estimates (subscription required) of how these figures would look by the end of the decade. This year is likely to see the USA's proportion of world GDP fall quite markedly as it is gets hit much more substantially than Asian countries by COVID-19. If you add in the other Asian countries on the list, the share of GDP comes to 32.3%. The figures from Statistics Times paint the picture, as illustrated below:Ĭhina, Japan and India already have a combined share of world GDP of 26.42%. The Big PictureĪttempts by the Trump administration to roll back Chinese economic power are understandable but may be doomed to failure. Tencent is marrying organic growth in China with a sound investment strategy in companies both in China and overseas. Much of this new growth is coming from countries around Asia. The company's expansion in recent years throughout Asia (and elsewhere) is a reflection itself of the growing dominance of China in many markets. It has been using profits from this to diversify into being a technological giant. It controls over 50% of China's US$35 billion gaming market. Tencent is the world's largest gaming company and is leading the charge into the growth area of e-sports. It is a similar strategic advantage to that enjoyed by Apple ( AAPL) through its iPhone user core. Its approximately 1.2 billion WeChat users are at the core of the company's strength. Mobile gaming has been the biggest revenue generator, but AI, online advertising, payments, Cloud Services and music are some of the growing strategic areas. These strengths are centred around its WeChat platform and associated WeChat Pay platform. My article in March gave details of the strengths and complexity of this giant. Tencent is a good play on these growth areas. These include gaming, online payments, the future of electric vehicles (EVs), and AI in its many applications. national security but a lot to do with Chinese strength in secular growth businesses. Such measures may be seen as having little to do with U.S. Such measures will arguably do little or no long-term harm to either Tencent or to China. It shares this status with other Chinese businesses such as Huawei and the TikTok app from ByteDance ( BDNCE). Tencent ( OTCPK:TCEHY) has started to come under pressure from the current U.S. ![]()
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