• Chinese and Indian Leaders

Chinese and Indian Leaders (Photo : Getty Images)

China and India are leading the way to dominate the world economy while Americans and Europeans are busy with political issues in their own turfs, Forbes reported.

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According to the article, if the world GDP is expected to grow by about 3.4 percent this year, China and India are likely to contribute about 75 percent of it.

China's advantage

China has an advantage over India, which is poorer and lacks the economic muscle. China has corporate giants and its new billionaire entrepreneurial class which can produce the next global leaders to compete and surpass other companies.

Although Huawei may not be able to beat Cisco in the U.S., the Chinese company is gaining presence in Latin America and Asia.

While London and New York may remain as financial capitals of the world, Shanghai may likely replace Tokyo as a financial center in Asia, the report said.

"The central theme of international politics...is the steadily eroding power of the West," said Gideon Rachman, Financial Times chief foreign affairs commentator and author of the new book "Easternization: Asia's Rise and America's Decline from Obama to Trump."

"This erosion is closely linked to the growing concentration of wealth in Asia, and in particular the rise of China," Rachman added.

According to Rachman, the U.K. is preoccupied with concerns about the referendum on its exit from the European Union while on U.S. politics, Trump is pledging to "Make America Great Again," when it was the richest and most powerful country in the world.

Although U.S. is still the richest and the top economic power, China is rising, Rachman noted. He added that a U.S. trade war with China would be senseless because China has a major contribution to the country, in terms of foreign direct investment capital.

China and India transformed so fast which caught the West unaware, the report said. India is known in the business and investment world as an IT hub which has its five biggest IT firms that hire thousands of Indian IT engineers each year. The report said that Silicon Valley relies so much on Indian brain power.

Meanwhile, China is increasingly becoming a source of capital for real estate development and Hollywood.

China's economy continues to grow, which was only 6 percent of the U.S. economy in 1990. But by 2012, it became 80 percent, and China surpassed the GDP of smaller Western countries such as Germany, France and the U.K. since 2006, according to a University of British Colombia study by economist Yves Tiberghien.

Now, the West is facing a political crisis which some believed is part of a cleansing process but treated by China as a blessing, according to the report.

At the closing of the National People's Congress, Premier Li Keqiang said that a trade with the U.S. is not favored by China and bilateral trade and investment has generated one million jobs in the U.S. last year.

But there could still be hope for the U.S. as its fiscal policy could help push global and advanced economies.

Advisor Revolution strategist Michael Williams said that demographics will play a key role in the U.S. recovery, unlike China.

"We are still expecting an economic boom in the U.S. because of demographics," Williams said about the Millennial generation. "Boomers helped drive the market from 1,000 points in 1975 to over 10,000. China doesn't have that tailwind, but we do."